top operators in the permian basin 2020
Top 5 Companies Out of Total. “Our leasehold is nearly 92% oil. XTO Energy is the most active operator in the Permian Basin. From East to West, the play spans 250 miles and 300 miles from North to South. Permits ( February 12, 2021 - March 14, 2021). Located in West Texas, the Permian Basin has been producing oil for over 100 years. Wolfcamp completions used 94% recycled water in 2019, saving $1.78/bbl for procured water. Now It Has Too Many. According to the company’s operations report, the 2020 program is expected to place 345-375 wells on production by year’s end, compared with 306 wells placed on production during 2019. Pigott says Laredo is beginning to add more sand to its standard completions design, taking advantage of the low cost of in-basin sand. Sabalo’s fracturing treatments use a mix of local in-basin and out-of-basin sands, and rely on recycled water captured during post-fracturing well flowback operations, Clark says. In the first quarter, Laredo took a major step toward incorporating the Cline formation into its future Midland Basin horizontal development program, completing two Cline wells. Permian Basin Overview. Big factor in Permian growth All anticipated first-quarter completions are on Laredo’s established acreage in Reagan and Glasscock counties, where it is operating one completion crew, but will shift much of its focus to newly acquired acreage in Howard and Glasscock counties in the second quarter. For full-year 2020, the company has hedges locked in on 90% of expected oil production, 40% of expected natural gas production and 25% of expected NGL production, the company reports. “Throughout 2019, we drove down well costs, unit lease operating expenses, and unit general and administration expenses, while improving well productivity versus 2018 by widening development spacing. The company lowered cost on 76 net wells in the Delaware Basin last year to $1,188 per completed lateral foot. This is still not adequate, and companies are responding to close the gap. It has produced more than 31.5 billion barrels … Development activity will be focused on the economic core of its top-tier Delaware Basin and Eagle Ford assets. Parsley Energy of Austin, one of the top 20 drilling companies in Texas, said March 9 it plans to reduce drilling rigs from 15 to 12 and reduce hydraulic fracturing crews from 5 to 3. Total equivalent production is expected to average 270,000-286,000 boe, essentially flat from 2019. We expect to retain the benefits of these improvements in our 2020 development program as we transition from our established acreage base to recently acquired tier-one acreage in Howard County.”. Exxon Mobil Corp. (NYSE: XOM) is set to deliver the biggest increase in spending as it works to triple its Permian production by 2025. News, Stebbins Expansion Crude Oil Pipeline Project, Diamondback Energy to Acquire QEP Resources, Earthstone Acquires PE-Backed Midland E&P for $182 Million, Contango to Acquire Oily Assets in Big Horn, PRB, Permian Basins, New PE-backed E&P Scores Permian Property, Rising Phoenix Acquires Permian Royalty Package, Ameredev Wins Bid for Lilis Energy's Permian Portfolio, Laredo Ups Ante in Howard County, TX; Bolts On Acreage, Tengasco, Riley Exploration Permian to Merge in All-Stock Deal, Latest News on the US, Canada and International plays, Tracking Activity on more than 4,000 companies (E&P, Midstream & Oilfield Services), Active Rigs By Company and County (Updated Weekly), 2015 & 2014 Company Detailed Drilling Budgets, Company & Play Break-Even, Type Curves and Well Economics. Permian Basin - Drilling The company averaged drilling about 1,000 feet a day and completing 1,600 feet a day in 2019. Opposite the trend to increase well spacing in the Permian, Clark notes that stage-to-stage spacing is getting tighter. OIL. “Our capital planning for 2020 shows that at a $50/bbl WTI price and similar capital to the amount invested in 2019, Cimarex can generate 9% midpoint oil growth and generate free cash flow,” comments Tom Jorden, chairman and CEO of Cimarex. Top 5 Walkers Out of 45 Total. Its Culberson wells have a $2 expense per barrel of oil equivalent compared with $3.50 per boe on the rest of the Delaware Basin. CARLSBAD, N.M. (AP) — Oil and gas companies have begun reducing their operations in the Permian Basin as the spread of the new coronavirus slows global energy demands and … Facilities optimized around development and differentiated water infrastructure also have lowered well costs, according to Sheffield. In early February, Laredo executed a bolt-on transaction to its tier-one Howard County position, adding 1,100 net acres for $22.5 million. Companies continue to race into the Permian, jockeying for acreage and buying up increasing positions in the world’s most popular unconventional basin. How was Pioneer able to accomplish a 30% savings in well cost? • The project is divided into three pieces: • Evaluating the historic flaring taking place in Current WTI price is $15.50/bbl. Clark says lateral lengths are consistently getting longer and proppant loads have gone up. During the second quarter of 2020, when the average spot price for West Texas Intermediate (WTI) was $27.81 per barrel of oil (bbl), only a third of the top 15 operators in the Permian Basin were able to receive a higher price than average. Continued growth of oil and gas production in the Delaware Basin – on the western side of the greater Permian Basin – prompted service companies to expand their operations aside from oil and gas drilling to better serve energy companies in the region. Stay in touch with the latest activities by subscribing to our daily email covering operators, service companies, (acreage, production rates, well info, development plans, resverse, and completions designs), US Rig Count Increases by 6; Rig Activity By Operator, Shell Appoints New Company Chairman; Details Other Board Changes, QEP Stakeholder Speaks Out Against Merger Deal with Diamondback, Battalion IDs 2021 Capital Plan; Production Flat, Summit Midstream Fourth Quarter, Full Year 2020 Results, Chevron to Acquire Noble Midstream in All-Stock Deal Worth $1.3B, See FULL list of The deal increases daily production by about a quarter for Oxy in the Permian Basin that spans Texas and New Mexico, where it was already the top overall producer. Now we are drilling 15,000-foot laterals. The Basin produced a prodigious 29 billion barrels of oil since output began in 1921. U. S. Energy Information Administration | Drilling Productivity Report 0 1,000 2,000 3,000 4,000 5,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 The Permian Basin of west Texas and southeast New Mexico is one of the most prolific oil and gas producing regions in the country. The company’s Wolfcamp A and Lower Spraberry wells average 660-700 foot spacing, and it is preparing to kick off a Middle Wolfcamp drilling program based on well spacing of 1,000-1,200 feet. Finally, some operators have chosen to exit the region and deploy capital elsewhere (e.g., Cimarex shifted capex to the Delaware Basin following the Resolute acquisition). More than 2,500 Subscribers rely on our data each day. It’s a story of hard work and free enterprise, gut feelings and calculated risks, ingenuity and science, and legendary characters and companies. “We are a little more conservative than most when it comes to spacing,” responds Barry Clark, president of Corpus Christi, Tx.-based Sabalo Energy, which has participated in 150 operated and nonoperated horizontal wells in the northern reaches of the Midland Basin in Howard County. The first is drilling and completion efficiencies, and the second is reduced completion costs achieved by partnering with service companies. In early February, Laredo closed on a bolt-on acquisition to its tier-one Howard County position, adding 1,100 net acres to increase its operated inventory in Howard County to 130 gross (124 net) primary locations in the Lower Spraberry, Upper Wolfcamp and Middle Wolfcamp formations. Tulsa-based Laredo Petroleum Inc. completed 15 gross (13.1 net) Midland Basin horizontal wells during the fourth quarter of 2019 using a wider spacing development plan. “Significantly, expected returns at the lower well cost increase by 6% and 8% at $50/bbl and $55/bbl, respectively,” Laredo stated in a release announcing the completion of the two Cline wells. The Best-Performing Energy Companies Of 2020. Cimarex Energy also is reporting success with 8,500-foot or longer laterals in the Wolfcamp and Bone Spring formations in the Delaware Basin. Speaking of natural gas, Sheffield says one proposal at a recent conference on flaring in the capital city of Austin was to set a target of flaring less than 2% of produced gas in West Texas. Pioneer plans to operate 23-24 rigs in the Permian in 2020 and place 345-375 wells on production by year’s end, mainly in the Wolfcamp A, Wolfcamp B and Spraberry formations. The first of Laredo’s initial 15-well package in Howard County has been drilled successfully and completion operations were expected to commence on the full package during the second quarter, according to the company. Top 5 Teams Out of 18 Total. The Permian basin is among the most mature producing areas in the world. However, Clark says it has been his experience that production from parent wells temporarily shut in while offset child wells are being fractured usually comes back equal to or better than the levels prior to stimulating the child wells. Top 10 Permian Basin Operators by Rig Count, status, API, lease information, and legal description Rig Locations Map / Database: Updated Weekly Search and view rig locations by: operator, well name, county, state, and wellbore type Planned Drilling Programs Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages Cimarex says it is operating 10 rigs and two completion crews, and is employing 90% of its drilling and completion capital in the Permian Basin, continuing to focus on long-lateral Wolfcamp wells in Culberson and Reeves counties in Texas and Lea and Eddy counties in New Mexico. The Permian Basin is one of the oldest and most widely recognized oil and gas producing regions in the U.S. The end of the last decade saw some huge oil & gas takeovers, and the action is set to continue in 2020 with some potentially big deals in the Permian basin The primary driver behind quarterly oil production exceeding expectations was the “outperformance” of the nine-well Sugg/Von Gonten pad, which Pigott reports is exceeding Laredo’s Upper/Middle Wolfcamp oil type curve by 39%. Summary The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. Big factor in Permian growth Search by team name. “Utilizing commodity prices of $50 a barrel WTI and $2.25 per MMBtu Henry Hub for the budget in 2020, the company expects to grow oil at a mid-single digit rate within cash flow and be in full development mode in Howard County by the end of the second quarter of 2020.”. Track A&D/M&A transactions by: buyer, seller, deal value, production, reserves, acreage, price per BOE, Access select maps from operator presentations for acreage, acquisitions, trends, and more, Track the latest well results and performance from operators in the Permian-basin, Track spending quarter by quarter as operators adjust spending throughout the year, Property Listings (Assets for sale by Operator, State, County, Region, Type), Still not sure? Summary The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. © 2021 Shale Experts, All rights reserved. In its fourth-quarter operations report, Cimarex noted that it has drilled 38 longer-lateral wells in Culberson County, Tx., 15 of which have been on production for 24 months with 400,000-barrel cumulative production. He adds that Pioneer also is transporting its NGLs and gas from the Permian Basin to premium-priced markets, leading to an incremental benefit of $4 million during the fourth quarter and a full-year 2019 benefit of $283 million. For our sample of 36 operators accounting for approximately 75% of total Permian production, their production volume loss due to lower rigs amounts to 834 mboed (of which 555 thousand barrels per day (mbd) is oil) by the end of 2020, when compared with the pre-price fall scenario. Laredo’s $450 million 2020 capital program, which includes $390 million for drilling and completion activities, is supported by a robust hedge position. Wells placed on production in 2020 are expected to be 40% Wolfcamp B, 40% Wolfcamp A, 15% Spraberry and 5% other formations, with an average lateral length of 9,800 feet. ... About the 2020 Permian Basin Heart Walk Digital Experience Make more moments possible. The company reports that two of its four active drilling rigs have been deployed to Howard County. According to Clark, the company is currently completing a six-well pad and plans to move to eight wells per pad in the future, after initially drilling single wells to hold acreage by production. Permian Basin has become a headache for pipeline operators, with the pandemic further damping demand for crude The Permian Basin is a large sedimentary basin in the southwestern part of the United States.The basin contains the Mid-Continent Oil Field province. ... New Mexico. In the Permian Basin, the declines are mostly due to operators taking a more cautious stance in … In its fourth-quarter operating report, the company announced that the $97 million it incurred in drilling and completion costs in the quarter was in line with expectations, even with one additional completion, with Laredo achieving performance records for both footage drilled and completed feet per day. EOG Resources reduced its 2020 capital plans 31% to $4.3-4.7 billion. EOG Resources reduced its 2020 capital plans 31% to $4.3-4.7 billion.