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Week of June 3, 2013Volume 3, No. 6

Made in America - Biggest US-Only Producers

Years of Growth Ahead from US Onshore Resource Plays


Chesapeake Energy

Eagle Ford


May 3, 2013


Full Presentation



Pioneer Natural Resources



May 30, 2013


Full Presentation


With the game-changing growth in U.S. oil and gas production, this docFinder Alert studies the largest publicly-traded U.S. Independents (as ranked by Enterprise Value) whose current production comes solely from domestic onshore sources.  We excluded Independents like Apache, Devon, and EOG who have assets outside the U.S.  This unique list of companies have grown their collective net gas production 48% over the last five years to 6.5 Bcfpd and oil/NGL production 177% to 331,000 bpd.


Top US-Only E&P Independents*

Annual Production by Year (Bcfe)

Company 2008 % Gas 2009 % Gas 2010 % Gas 2011 % Gas 2012 % Gas Enterprise Value($B)
Chesapeake Energy 843 92% 906 92% 1,035 89% 1,194 84% 1,422 79% $33.4
Pioneer Natural Resources 246 56% 252 55% 251 53% 274 49% 341 41% $22.0
Continental Resources 72 24% 82 26% 95 25% 135 27% 214 30% $19.2
Cabot Oil & Gas 95 95% 103 95% 131 96% 188 95% 268 95% $16.1
Southwestern Energy 195 100% 300 100% 405 100% 500 100% 565 99% $15.0
Range Resources 141 81% 159 82% 139 76% 189 77% 275 79% $14.9
Source: PLS Inc. docFinder Database, CAP IQ
*Ranked by EV as of June 04, 2013


Topping the list is Chesapeake Energy with an Enterprise Value of $33 billion.  Since 2008, CHK's gas production has grown 34% to 3.1 Bcfpd while its oil/NGL production has grown 336% to 134,000 bpd. Proudly heralding itself as the  #1 gas producer in the US back in 2008, CHK is rapidly ramping its oil production and is now the largest oil producer among this group of six.  CHK's oil growth focus is shown by the slide above left where S. Texas' Eagle Ford captures the largest share of its 2013 CAPEX.  There is certainly running room here for CHK with 10-years of Eagle Ford drilling inventory in the bank (with 15 rigs running) as CHK executes on its goal to achieve 250,000 bpd of oil/NGL production by 2015.

Pioneer Natural Resources ranks second with an Enterprise Value of $22 billion.  Pioneer's production is 59% oil/liquids weighted with its 2012 oil/liquids production averaging nearly 92,000 bpd - up over 70% in just two years.  This growth has propelled PXD into the third largest oil producer in Texas where it has been operating in the prolific Spraberry/Wolfcamp trend in west Texas since the early 1980s and now holds 900,000 acres.  In the conventional vertical Spraberry alone, PXD has 627 MMboe of proved reserves with 3,350 PUD locations plus an additional 0.9 BBoe based on 40 acre spacing and another 1.5 Bboe based on 20-acre spacing.  Bigger than the Spraberry, however, is the horizontal Wolfcamp resource play where PXD has 4.6 Bboe of additional resources that are only now in the early stages of drilling.  Impressively, the combined Spraberry/Wolfcamp resources would rank the field as the second largest oil field in the world - only behind Ghawar in Saudi Arabia.  These resources already in inventory will allow PXD to continue a production CAGR of 13% to 18% through 2015.



More HOT slides and data below. 

     Shown below are more slides from the other 4 top US-only Independents along with their core resource plays for more growth.  These include Continental Resources (Bakken), Cabot Oil & Gas (Marcellus), Southwestern Energy (Fayetteville) and Range Resources (Marcellus).

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    featured.slides from docFinder

    Slide Slide Slide Slide

    Continental Resources


    May 21, 2013


    Cabot Oil & Gas


    May 15, 2013


    Southwestern Energy


    May 7, 2013


    Range Resources


    April 26, 2013


    Continental Resources is both the fastest growing and the most oily company on this group of six!  Since 2012, CLR has grown its overall production an impressive 197% to 97,852 boepd (70% oil). This growth has propelled CLR to become the #1 producer of oil in the Bakken, North Dakota and the Rockies.  CLR is currently running 22 rigs in the Bakken and has another 3.0 Bboe of unbooked potential on 3,439 locations.  The Bakken area continues to yield upside and CLR is the pioneer in expanding the play to include deeper Three Forks oil resources. CLR is targeting a further triple in growth by 2017.


    Cabot Oil & Gas' gas growth has skyrocketed 126% since 2010, while investors reward this performance sending the shares up 222% since January 1, 2010. Spurring this impressive performance is an extensive position in the Marcellus play with economics that rival or exceed all of the top US liquids plays.  COG's Marcellus program continues to improve as measured by F&D costs and production replacement rates, and leads peers in production and reserve metrics per share. COG's investment thesis remains simply growth with running room for another 3,000 plus wells in the Marcellus sweet spot.

    Southwestern Energy's strategy remains focused on natural gas with 4 Tcfe of reserves.  Since 2007, SWN has averaged 38% production growth and 325% reserve replacement at a F&D cost of $1.36/Mcfe.  In the Fayetteville, SWN (disoverer) holds 914,000 acres with first mover advantages like low acreage costs ($313/acre) and low royalties (15%). This year, SWN will drill up to 390 wells in the Fayetteville and devote 42% of its $2.0 billion CAPEX program to the area.  Through unrelenting focus on lower costs and improved efficiencies, SWN scores high on peer metrics.  

    As shown in the slide above, the Marcellus is garnering 79% of Range Resources' $1.3 billion 2013 budget.  Like COG, the Marcellus is the cornerstone of RRC's growth with 1 million acres in Pennsylvania. This map shows RRC's peer positions in the Marcellus, where activity is concentrated in the northeast and southwest sectors.  RRC has 'line-of-sight" production growth of 20% to 25% for many years and has resource potential of 7 to 10 times its existing 6.5 Tcfe of proved reserves. RRC is focused on growth at low cost and backs it up with impressive 2012 drill bit finding costs of $0.76/Mcfe and 773% drill bit replacement rate.


    Full Presentation

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    featured.transactions from PLS global M&A database

    06/04/13Kodiak buys North Dakota Bakken assets from Liberty Resources$660 MM
    05/31/13Wapiti Energy buys multiple fields from Layline Petroleum$375 MM
    05/30/13ENI sells 6.7% stake in Galp Energia in Brazil$874 MM
    05/20/13EnerVest buys Anadarko basin assets from Laredo Petroleum$438 MM

    Source: PLS M&A Database