Topic: SCOOP

Mammoth Reports Growth in Pressure Pumping, Frac Sand Production, Directional Drilling

On May 3, 2017, Mammoth Energy Service, Inc. (NASDAQ: TUSK) hosted its quarterly earnings call to report results from Q1’17. Highlights included a dramatic increase in YOY pressure pumping activity, progress on two key frac sand production facility acquisitions, and growth in the company’s directional drilling fleets.Mammoth reported Q1 spending of about $31 million, most of which is tied to delivery of 75,000 HHP and associated equipment ordered in November 2016. Other factors includeAcquisition of three high-pressure fleets totaling...

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Marathon Unveils $2.2 Billion 2017 Capital Program

On February 15, 2017, Marathon Oil Corporation (NYSE: MRO) announced results from Q4 and FY 2016 and unveiled a 2017 capital program of $2.2 billion, with over 90 percent allocated to its high-return U.S. resource plays. Oklahoma Led Production in the Fourth Quarter On the operations side, Marathon’s production averaged 341,000 BOED in Q4 2016, with assets in the Oklahoma Resource Basins reporting a production increase of 60% over Q4 2015. E&P production costs for North America were down more than 30%...

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Devon Energy Will Utilize 15 to 20 rigs in 2017 with STACK and Delaware Focus

Devon Energy (NYSE: DVN) released its preliminary 2017 outlook in December expressed the possibility of getting to 15 to 20 rigs in their drilling program with a focus in the STACK and Delaware basins. Devon will also focus on reducing their drilled but uncompleted count in the Eagle Ford down to about 40 in the first half of the year. The company is forecasting double digit U.S. oil growth with about a third of production hedged in 2017.Source: Devon Energy...

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Continental Resources Waits for Sustained $45 bbl Oil Prices to Complete DUCs

Continental Resources (NYSE: CLR) is nearing cash flow neutrality and hopefully the end of the year will bring improved oil prices to lift them into the green. Continental has spent $630 million of the company’s $920 million budget in the first half of the year leaving only 32% of the budget for the second half of year so expect the company to have lower activity in the fourth quarter. Largest DUC Inventory in the Bakken Continental has had very minimal activity in...

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Proppant Insights: The Battle for Frac Sand Market Share

The last quarter brought about activity across frac sand suppliers as providers continued moving towards the Permian Basin. For the last three quarters, Permian leads proppant demand. Due to the reporting lag in completions, expect the Q2 numbers to increase by another 10-20%.Since 2015 Q4, E&P companies in the Permian have consumed approximately 11 billion pounds of frac sand. Recent well reports show 1,200 - 1,500 pounds of proppant per lateral foot in the Delaware. A few E&P's are pumping nearly...

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E&P Earning Season Ends with DUCs, Bankruptcy, & Divesting Themes

Taking a look back at the first quarter we will review some updates from operators around the country and how they have held up into 2016 and are preparing for the rest of the year. Many have increase production guidance showing that they can still produce with declining capital budgets and others are looking to asset sales to gain liquidity. Below are some highlights from the quarter. Devon Energy Increases Production Guidance During the first quarter Devon Energy (NYSE: DVN) spent $363...

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Grady County (OK): Spotty Completion Activity with Permitting Holding Steady

Oklahoma currently holds the second largest concentration of rigs in the U.S. according to the BHI Land Rig Count. So where is the activity coming from? Grady county in the SCOOP has 14 completions since the start of the year. Permitting has fallen since commodity prices to a dive but they have recently leveled off going into 2016.  Drilling Activity Doesn't Equate to Well Completions In he first four months of 2016 there have been under 100 completions compared to over 750 during the...

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CLR enhanced completions

Contintental Resources Stays the Course in Bakken & SCOOP

Like many other Bakken E&P's, Continental Resources (NYSE: CLR) activity slowed in the second half of 2015.The company will continue to invest in Bakken and SCOOP, but do not expect Continental's production growth to continue as the company plans to release rigs in Bakken and SCOOP. The chart below shows drilling permits and completions for the Bakken, Continental's key asset. Source: Energent Group Bakken: Enhanced Completions Improve EURCurrent well costs are down 27% to $7 million per well Decrease in drilling daysReduction of...

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