PS - Oklahoma experiences around a 50% YOY drop in Q1 D&C activity - June 2020For most plays in the US, Q1 will mark the peak of D&C activity for 2020—unless there is a robust price recovery that nobody is really forecasting. For Oklahoma, that fact is signaling a very slow year. At the beginning of Q1 there were 58 rigs running in the state, and by quarter’s end the number had fallen by 41% to 34. By the last day of May, the number dropped further to 13, or 78% less than on Jan. 1. The only companies currently running more than one rig are Continental (three rigs),...
Jun 24, 2020
OFS - Blockchain consortium claims success in Bakken water system - June 2020A consortium of 10 leading E&P companies completed its first pilot leveraging blockchain technology. The Offshore Operators Committee Oil & Gas Blockchain Consortium said the project produced a platform for automating produced water haulage from field reading to invoice payment. “This is just the tip of the iceberg for the potential of blockchain in our industry,” consortium chairman Rebecca Hofmann said. The pilot, developed in partnership with Data Gumbo and utilizing its GumboNet...
Jun 10, 2020
MCS - Oklahoma experiences around a 50% YOY drop in Q1 D&C activity - June 3, 2020For most plays in the US, Q1 will likely have marked the peak of D&C activity for 2020— unless there is a robust price recovery that nobody is really forecasting. For Oklahoma, that fact is signaling a very slow year. At the beginning of Q1 there were 58 rigs running in the state, and by quarter’s end the number had fallen 41% to 34. By the last day of May, the number dropped further to 13, or 78% less than Jan. 1. The only companies currently running more than one rig are Continental Resources...
Jun 03, 2020
PS - Marathon to focus H2 Bakken completions on Myrmidon area - June 2020During Q1, Marathon Oil produced 110,000 boe/d (80% oil) from the Bakken, up 2% sequentially and 20% YOY. The company ran four rigs and one frac crew, bringing 25 operated wells online during the quarter. After completing eight wells during Q2, Marathon has suspended completion activity in the play and plans to transition to one Bakken rig and one completion crew during H2. Of the remaining 25 wells that will be completed and turned to sales in 2020, activity will be concentrated in the...
Jun 03, 2020
PS - Analyst Notes - June 2, 2020EOG Resources (EOG; $48.20-May 13; Buy; PT-$62) Last week’s update to 2020 guidance had a number of moving components to work through including a Q2 frac holiday and 40mbopd of annual shut in volumes that took production well below consensus expectations. Our updated model puts capex at $3.4B, or the lower end of the $3.3-3.7B guidance, with our FY oil production of 392mbopd in line with management expectations. Decline rates have been extremely topical for this name, with our updated...
Jun 03, 2020
BS - Marathon to focus H2 Bakken completions on Myrmidon area - May 26, 2020During Q1, Marathon Oil produced 110,000 boe/d (80% oil) from the Bakken, up 2% sequentially and 20% YOY. The company ran four rigs and one frac crew, bringing 25 operated wells online during the quarter. After completing eight wells during Q2, Marathon has suspended completion activity in the play and plans to transition to one Bakken rig and one completion crew during H2. Of the remaining 25 wells that will be completed and turned to sales in 2020, activity will be concentrated in the...
May 26, 2020
MCS - Marathon Oil Highlights - May 20, 2020During Q1, Marathon Oil produced 74,000 boe/d (28% oil) in Oklahoma, down 10% sequentially but up 17% YOY, and brought 13 operated wells online. The company began the year running three rigs and one frac crew in the state but suspended all activity from March through YE20. Commenting on future capital allocation, CEO Lee Tillman said, “As we look forward into a more normalized environment and, certainly if we see, as we see the oil supply response, if that also translates into a gas supply...
May 20, 2020
CM - Marathon Oil’s 2020 spending to be 50% less than last year
- May 2020Marathon Oil withdrew previously provided guidance but said its revised 2020 capital spending budget is now $1.3 billion or less, down at least $1.1 billion, compared to initial guidance and 50% off 2019 capital spending. Annualized cash costs are expected to go down $350 million, and the company expects its US and international crude production to fall 8% and 7%, respectively, on a divestitureadjusted basis this year, excluding possible future curtailments. Production in 2019 was about 414,000...
May 15, 2020
PS - Marathon suspends completions activity for remainder of Q2 - May 2020Marathon Oil had planned to turn 120-140 operated wells to sales in the Eagle Ford this year, but the outlook has changed considerably. After bringing 38 wells online in Q1, the company suspended Q2 completion activity and will transition to a lower and more stable level of drilling and completion activity over the second half of the year. It expects to turn 20 wells to sales in Q2, weighted to April, and 30 in H2, primarily in Q4. After running four rigs and two frac teams in the Eagle Ford...
May 13, 2020
PS - Shale operators adjust 2020 plans to weather the storm - May 2020As the oil and gas industry recovered from the last bust, the theme centered around “lower for longer.” For several years, the reality of it has been 100% true. Planned capital investments before the 2020 crash anticipated lower spending and flatto-lower activity levels. Strategies to reduce debt and achieve free cash flow over the last year have enabled many companies to be in better positions in the current sub-$30 theatre, with many wielding operational and capital cuts several times....
May 13, 2020
PS - Marathon’s limited Sycamore tests prove to be very gassy - May 2020Marathon Oil has drilled and completed a limited number of wells targeting the Sycamore formation in the SCOOP play, one of which it disclosed in its Q4 earnings report and one completed in February, according to state data. Results were gas-heavy for both wells. The Winter Creek 0606 1-25-24MXH produced an initial 30-day rate of 8.9 MMcfe/d (43% oil), according to Marathon’s Feb. 14 presentation. Located in Grady County, Oklahoma, the well appears to be a pre-existing wellbore that had...
May 13, 2020
STS - Marathon suspends completions activity for rest of Q2 - May 7, 2020Marathon Oil had planned to turn 120-140 operated wells to sales in the Eagle Ford this year, but the outlook has changed considerably. After bringing 38 wells online in Q1, the company suspended Q2 completion activity and will transition to a lower and more stable level of drilling and completion activity over the second half of the year. It expects to turn 20 wells to sales in Q2, weighted to April, and 30 in H2, primarily in Q4. After running four rigs and two frac teams in the Eagle Ford...
May 07, 2020
MCS - Marathon’s limited Sycamore tests prove to be very gassy - May 6, 2020Marathon Oil has drilled and completed a limited number of wells targeting the Sycamore formation in the SCOOP play, one of which it disclosed during Q4 earnings and one completed in February, according to state data. Results were gas heavy for both wells. The Winter Creek 0606 1-25-24MXH produced an initial 30-day rate of 8.9 MMcfe/d (43% oil), according to Marathon’s Feb. 14 presentation. Located in Grady County, Oklahoma, the well appears to be a preexisting wellbore that had been...
May 06, 2020
MI - Cheniere’s Midship begins service out of Sooner Trend - May 2020Cheniere Energy Inc.’s Midship pipeline is now in service after the Federal Energy Regulatory Commission approved it to move gas from Kingfisher County in Oklahoma’s Sooner Trend to Gulf Coast and Southeast US markets via an interconnect near Bennington, Oklahoma. Construction of the pipeline concluded in March, and Cheniere made an April 17 request to place the 200-mile system online. Volumes began flowing on April 21 with an initial 182 MMcf/d of capacity used, rising to 190...
May 06, 2020
PS - News Briefs - June 2020During 2020, EOG Resources plans to bring online 30 net wells in the Powder River Basin, 11 of which were turned to sales in Q1. New completion technology is improving well results, with Niobrara wells using the new design showing 45%-higher cumulative oil production at around 300 days. Mowry wells with the new design are delivering 70%-higher oil volumes at the one-year mark. On its Shannon Secondary Recovery Unit in the Powder River Basin, 13 of Cuda Oil and Gas’ 34 producing...
Jun 03, 2020