Some Permian Basin-focused exploration and production (E&P) executive teams  – Callon Petroleum Co., HighPeak Energy Inc. and Permian Resources Corp. to name a few –  are reporting that oilfield services (OFS) and material prices softened during the second quarter. 

Houston-based Callon Petroleum Co. CEO Joe Gatto said OFS equipment prices dropped slightly. Gatto hosted a conference call to discuss earnings. Callon has exited the Eagle Ford Shale and expanded in the Permian’s Delaware sub-basin. 

Gatto said elevated prices for OFS equipment are softening. Callon “recently recontracted two drilling rigs at rates that were below our previous rates. Spot market items like steel casing and sand are being priced down between 15-20%, and we are also starting to realize price...