docFinder alert PLS PLS
Week of November 12, 2012Volume 2, No. 35

An early look at 2013 Capex
Gain Insight: See who's spending and where!


Concho 2013 Capex

$1.6B mostly Delaware basin


November 7, 2012


Full Presentation



Continental 2013 Capex

$3.4B mostly Bakken


October 16, 2012


Full Presentation


With Q3 behind us, companies are in full planning mode for 2013.  This docFinder Alert provides you with select early insights on 2013 capital expenditure plans and the impact on some of the country's best plays.

Slide above left is from Concho Resources - a rate of return driven and leading pure-play Permian-focused operator holding 750,000 net acres with over 10,600 drilling locations and producing over 85,000 boepd.  Concho is planning a 2013 capex budget of $1.6 billion, of which 85% is for drilling, 8% for facilities and 7% (or about $112 million)  for leasing.  On the drilling side within the Permian, Concho's 2013 focus will be in the the Delaware basin (about $735 million) with 11 rigs running, followed by the Midland basin (about $340 million) with a 14 rig program and the New Mexico shelf portion (about $286 million) with a 5 rig program. Of the total 630 wells to be drilled, 422 (or 67%) will be horizontal.  Concho expects this level of spending to result in a mid-range 2013 production number of 139,000 boepd - up about 60% from its Q3 average.

Slide above right is from Continental Resources - the self-proclaimed King of the Bakken and number one oil producer in the Williston basin who surpassed the 100,000 boepd milestone back in June.  Continental also just released its stealth new play (codename SCOOP) as being the premium area of the Woodford shale in south central Oklahoma where it has managed to lease nearly 171,000 acres (23% HBP). Continental's longer term game plan calls for another triple in production to 300,000 boepd by 2017.  As the slide above shows, for 2013 Continental is planning a $3.4 billion capital program ($2.9 billion to drilling).  The program expects to increase its average rigs running from 33 in 2012 to 35 in 2013.  The Bakken takes 66% of the drilling budget, SCOOP takes 15% and other development and exploratory works takes the remaining 19%.  The 2013 budget is expected to increase production by 30% to 35% and drill a net 300 wells.


More HOT slides and data below. 

Additional early reports of 2013 capital programs for select companies who provide more play insights are courtesy of Plains E&P, EOG Resources,  Berry Petroleum, and Gulfport Energy.


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featured.slides from docFinder

Slide Slide Slide Slide


$1.8 to $2.0 billion


October 3, 2012


EOG Resources

2013 less than 2012's


November 12, 2012


Berry Petroleum

$500 to $600 Million


October 31, 2012


Gulfport Energy

$283 to $299 Million


November 6, 2012


Plains E&P recently transformed the company with a $6.1 billion purchase of Gulf of Mexico assets from BP and Shell.  In order to execute the gameplan, PXP is now planning a $1.8 to $2.0 billion 2013 capital program - of which $513 million will go to the GOM.  In addition, PXP expects to sell $1.4 to $1.6 billion in assets in 2013 to de-leverage the balance sheet.  The 2013 program is expected to result in 136,000 boepd of production -- up 22% from 2012.  Footnote: PXP plan is based on $3.00 natural gas in 2013 and $4.00 in 2014.


EOG Resources is now expected to spend $7.6 billion in capital in 2012 which should deliver a 40% YOY growth in oil production and a 11% in overall growth.  The forward 2013 gameplan expects to ramp down the capital program below 2012 levels while still delivering double digit liquids growth without diluting equity or leveraging up.  The focus will be continued efforts in the Eagle Ford and Bakken.  In the Eagle Ford, EOG has potential reserves of 1.6 Bboe which it's calling the largest oil capture net to any company in ~ 40 years.


Berry Petroleum is growing in three oil basins - the Permian, the Uinta and the San Joaquin.  2012 production is now expected to average 36,200 boepd (75% oil).  For 2013 Berry is expected to ramp down spending slightly to $500 to $600 million (from $650 million in 2012).  Even with the reduced spending, Berry expects to increase production by 5% to 10% and increase oil to 80%.  Currently, Berry is running 4 rigs in the Permian, 3 rigs in the Uinta and is the fifth largest California oil producer.


Gulfport Energy is an oil-focused producer with mid-range 2012 production estimated to be ~7,500 boepd (92% oil and liquids).  GPOR has a sizable position (64,000 net acres) in one of the most promising plays - the Utica shale - where its first six wells averaged peak IP's of 3,479 boepd.  The Utica ($220 million) will take the bulk of an increased (up 33%) 2013 capital plan of ~ $291 million.  The 2013 increased spending is expected to yield an impressive mid-range YOY production growth in 2013 of over 140%.


Full Presentation

Full Presentation

Full Presentation

Full Presentation

featured.transactions from PLS global M&A database

11/07/12Continental buys 120,000 Bakken acres from Samson$650 MM
11/07/12Legacy Reserves LP buys long-lived Permian assets from Concho$520 MM
11/05/12Ursa buys Piceance gas assets from Antero Resources$325 MM
11/01/12Crescent Point buys Rockies oil from Ute Energy$861 MM

Source: PLS M&A Database