It's too early to say what impact heavy rains throughout Texas Tuesday and Wednesday will have on the next round of producer results; however, some operators shut in wells as at least a precaution.
Apache Corp. and Devon Energy Corp. were reported to have shut in wells on a select basis, said Wells Fargo Securities analyst David Tameron in a note Wednesday.
Apache told NGI's Shale Daily that about 37 wells in the Eagle Ford Shale were shut in, merely as a precaution. The curtailment was not expected to be significant, spokesman Rory Sweeney said.
"It's still too early to put any numbers on that, but we do expect it to be nominal given the temporary nature of the shut in...It should only be a couple of days." The measure was taken Tuesday evening just in case the nearby Brazos River reached flood stage, he said. The company has both oil and natural gas production in the region.
"We have taken a number of precautionary measures to protect our employees and to reduce any potential impact to operations," Devon said in a statement. "We have shut in wells in the affected areas and continue to monitor and evaluate the situation."
Some phones in administrative offices in Houston went unanswered Tuesday as not everyone was able to make it to work through the rain-swollen streets.
Wells Fargo surveyed a number of Eagle Ford and Permian exploration and production (E&P) operators, Tameron said.
"One operator noted that it hadn't experienced any impact to its Eagle Ford (southwest region of play) or Permian (Midland Basin) operations," Tameron wrote. "A Midland Basin pure-play stated its area of operations experienced far less of an impact than Central and Southeast Texas but could still shave a day of operations off the planned schedule. Another E&P in the basin didn't expect an impact to guidance but noted normal weather difficulties (moving equipment, roads are a mess, etc.). A larger E&P that has operations throughout most of Texas indicated weather was definitely noticeable but not material enough to comment at this time."
Weather in Texas and Oklahoma could push the second quarter production outlook lower for some producers, Tameron said, but it's too early to tell yet.