Macro/Headlines/Events: Baker Hughes U.S. onshore rig count +5 last week from 727 to 732. WSJ- America’s Oil Patch Loses Its Luster- Link WSJ- Billionaires are betting on fusion technology as a source of almost limitless energy Link FT- US renewables industry joins…
Macro/Headlines/Events Exciting Monday as OPEC surprises the energy world with 1MM BBL/day cut to production and a nice size M&A transaction in the market. BB- Ovintiv to Buy EnCap Permian Oil and Gas Assets for $4.3B ($3.1B cash and 32.6MM shares) Deal…
A few earnings releases today. Here are a few nuggets worth highlighting. Callon Petroleum Q1 capex = $278M. Less than $100M expected to be spent in Q2, Leaves ~$150M to $225M for 2H’20. CPE will exit Q2 with 70 DUCs as all completion activity in April was suspended.
Good morning and Happy Mother’s Day to all the mom’s on this distribution. You guys are great! Here are a few observations from the last week’s earnings calls as well as a few additional field tour anecdotes. E&P CapEx budgets continue to bleed lower with many companies cutting…
A few quick observations from Tuesday and Wednesday. The Permian looked bad and Oklahoma looks a whole lot worse. This probably comes as no surprise to industry friends as the Mid-Con rig count contraction over the past two years has been steep. Yesterday, we drove from Midland to…
A few quick observations from the first two days on the road: To state the obvious, it’s really, really bad out there. We believe there are now 19-20 frac crews working in the Permian. There is some chatter that E&P’s are seeking to renegotiate leases with land owners to allow them flexibility to…
Actions Have Consequences: Magnitude of cuts will impact industry’s ability to ramp when recovery unfolds. Working frac fleets trending towards our estimate of 50-75 fleets; land rig count will likely trough above our forecast. Oil Service Q2 outlooks point to ~70% q/q activity declines. E&P…
Getting caught up on earnings releases and conference calls…here are a few takeaways… Concho Resources Amending its 2020 capex budget lower again. New budget is $1.6B vs. the original plan of $2.7B. Q1 capex = $556M or ~35% of the 2020 budget. Original plan called for 18-20…
A couple earnings releases out this morning – one from ConocoPhillips and the other from Precision Drilling. Here are a few quick things which we found interesting: ConocoPhillips
ConocoPhillips curtailments for May expected to be 265,000 b/d and 460,000 b/d (across L48…