Permian Basin

Permian Pure-Play Pioneer Raises Oil Production Guidance, but 6,000 b/d Curtailed Till Prices Improve

Permian Pure-Play Pioneer Raises Oil Production Guidance, but 6,000 b/d Curtailed Till Prices Improve

Permian Basin heavyweight Pioneer Natural Resources Co. is raising its 2020 oil production guidance by 2.5%, but it is keeping most of the oil volumes curtailed during the second quarter offline until commodity prices improve, management said Wednesday. The Irving, TX-based independent curtailed about 7,000 b/d of net oil production during 2Q2020 and said it…

August 7, 2020
Natural Gas Futures Slip as EIA Storage Data Reflects ‘Woefully Oversupplied’ Market

Natural Gas Futures Slip as EIA Storage Data Reflects ‘Woefully Oversupplied’ Market

Natural gas futures buckled under pressure Thursday after a slightly larger-than-expected storage injection sapped the momentum prices had earlier in the week. The September Nymex futures contract settled at $2.165, down 2.6 cents day/day. October also slipped 2.6 cents to $2.305. Spot gas prices softened across the board as well, dragging down NGI’s Spot Gas…

August 6, 2020
Lower 48 ‘Remains Core’ to BP’s Business, but Higher Prices Said Key to Boosting Activity

Lower 48 ‘Remains Core’ to BP’s Business, but Higher Prices Said Key to Boosting Activity

The Lower 48 oil and natural gas business that BP plc carved out under a separate umbrella took a tumble in the second quarter, with the rig count falling from 13 working during the first three months of the year to only one at the end of June. The primary production focus of Denver-based BPX…

August 6, 2020
Cost Cuts Bolster Profits for Lower 48 Operators Enable, EnLink

Cost Cuts Bolster Profits for Lower 48 Operators Enable, EnLink

Aggressive cost-cutting helped prop up the bottom lines in the second quarter of two big Lower 48 midstream operators, Enable Midstream Partners LC and EnLink Midstream LLC, and expense control remains a high priority amid the shocks of the coronavirus pandemic and the demand destruction it created. Oklahoma City-based Enable said it moved swiftly to…

August 6, 2020
Natural Gas Futures Steady After Wild Two-Day Run; Cash Mixed

Natural Gas Futures Steady After Wild Two-Day Run; Cash Mixed

After a two-day rally that added roughly 40 cents to the price of September natural gas, Nymex futures stalled Wednesday as recent cooler shifts in the weather data were too much to ignore. The September Nymex contract settled two-tenths of a cent lower at $2.191. October was nearly unchanged at $2.331. Spot gas prices also…

August 5, 2020
Texas RRC Eyeing E&P Incentives, Reduced Time to Flare/Vent Natural Gas

Texas RRC Eyeing E&P Incentives, Reduced Time to Flare/Vent Natural Gas

Texas oil and gas regulators are looking for ways to reduce natural gas flaring, a particular problem  in the Permian Basin, by providing incentives and requiring operators to justify why they need exemptions. Draft rules were approved Tuesday by the three-member Railroad Commission (RRC), and will now undergo a 30-day comment period. Chairman Wayne Christian…

August 5, 2020
Devon Raises Lower 48 Oil Production Outlook, Accelerates Barnett Sale for Special Dividend

Devon Raises Lower 48 Oil Production Outlook, Accelerates Barnett Sale for Special Dividend

Lower 48 stalwart Devon Energy Corp. is working with fewer rigs and completion crews across its four core holdings in the Lower 48, but stronger oil production still is in sight for the year, along with a special dividend payment from former natural gas juggernaut, the Barnett Shale. CEO Dave Hager led a conference call…

August 5, 2020
Diamondback Forecasting ‘Significant’ Free Cash Flow, Flat to Marginal Output Growth to Year’s End

Diamondback Forecasting ‘Significant’ Free Cash Flow, Flat to Marginal Output Growth to Year’s End

Permian Basin pure-play Diamondback Energy Inc. has brought all of its curtailed production back online and expects to generate free cash flow in the second half of the year, management said Tuesday. The company curtailed 5% of its oil output during the second quarter in response to a pandemic-induced global supply glut, “with zero wells…

August 4, 2020
MPLX Advancing Permian Takeaway Projects, Appealing Review for Bakken Crude Pipeline

MPLX Advancing Permian Takeaway Projects, Appealing Review for Bakken Crude Pipeline

MPLX LP has secured financing for the almost fully committed Whistler natural gas pipeline to transport supplies from the Permian Basin’s Waha hub to the Agua Dulce market in South Texas. On the second quarter earnings call held Monday, CEO Michael Hennigan said the lower capital spend related to the financing was already factored into…

August 4, 2020
Lower 48 Oil Well Productivity Stumbling, Pointing to Bullish Prices in 2021, Says Raymond James

Lower 48 Oil Well Productivity Stumbling, Pointing to Bullish Prices in 2021, Says Raymond James

U.S. liquids supply growth may struggle to grow more than 500,000 b/d a year as Lower 48 well productivity, particularly in the Permian Basin, declines, according to research by Raymond James & Associates Inc. The analyst team led by Marshall Adkins on Monday said its current base case production forecast for the United States assumes…

August 3, 2020