Permian Basin

Targa Boosting Permian Natural Gas Processing Capacity by Moving North Texas Plant

Targa Boosting Permian Natural Gas Processing Capacity by Moving North Texas Plant

Targa Resources Corp. is relocating a cryogenic natural gas processing plant to the Permian Basin from North Texas to boost what it said is much needed capacity in the region. The Houston-based midstream operator said the Longhorn plant would be moved to the Midland sub-basin in West Texas to accommodate increasing production. The 200 MMcf/d…

November 16, 2020
Lower 48 E&P Consolidation Likely to Increase on Lower WTI, Acreage Prices

Lower 48 E&P Consolidation Likely to Increase on Lower WTI, Acreage Prices

The average price for U.S. onshore unconventional acreage has declined by more than 70% in the last two years, a precursor to more consolidation through 2022, according to Rystad Energy. The price for Lower 48 acreage fell on average to $5,000/acre this year from $17,000 in 2018, the result of lower West Texas Intermediate (WTI)…

November 12, 2020
Oil, Gas Permits for Lower 48 Federal Land Climb Ahead of Biden’s Election

Oil, Gas Permits for Lower 48 Federal Land Climb Ahead of Biden’s Election

U.S. explorers during October increased their oil and gas permit requests for the third month in a row, with an uptick in developing leaseholds on federal lands, according to Evercore ISI. The analyst firm each month provides data using state and federal sources regarding permits for oil and gas wells, plugging and abandoned (P&A) wells…

November 12, 2020
Apache Tackling Permian DUCs on ‘Favorable’ Service Costs, but No ‘Sustained’ Activity Near Term

Apache Tackling Permian DUCs on ‘Favorable’ Service Costs, but No ‘Sustained’ Activity Near Term

Houston’s Apache Corp. has returned online most curtailed volumes in the Permian Basin as commodity prices have improved, but finishing uncompleted wells will take precedence over ramping up development, CEO John J. Christmann IV said Thursday. Christmann led a conference call to discuss the quarterly results for the global independent, which has put a lower…

November 9, 2020
Texas E&Ps Must Justify Reasons to Flare/Vent Natural Gas, Says RRC

Texas E&Ps Must Justify Reasons to Flare/Vent Natural Gas, Says RRC

Producers working Texas oilfields will be required to show why they need permission to flare or vent natural gas under updated rules approved by state regulators Wednesday. However, the three-member Railroad Commission of Texas (RRC) stopped short of imposing more stringent requirements to limit emissions.  For months the RRC has weighed how to balance exploration…

November 5, 2020
Plains, Enable Execs Cautiously Upbeat on Lower 48 Activity, Higher Natural Gas Prices

Plains, Enable Execs Cautiously Upbeat on Lower 48 Activity, Higher Natural Gas Prices

No matter who becomes the U.S. president, midstream executives are optimistic about the upcoming year given the improved price outlook for natural gas and the level of activity that has been spurred by producer customers, particularly in the Haynesville Shale. Speaking early Tuesday on the third quarter earnings call, Plains All American LP CEO Willie…

November 5, 2020
MPLX Expecting Slower Growth, but Permian, Marcellus Volumes Fueling Optimism

MPLX Expecting Slower Growth, but Permian, Marcellus Volumes Fueling Optimism

In an ongoing effort to optimize capital spending amid the weak oil price environment, MPLX LP brought online the first segment of the Wink-to-Webster pipeline to ultimately transport more than 1 million b/d of Permian Basin crude to the Houston area. The main segment of the 650-mile pipeline was commissioned in October, and service is…

November 4, 2020
Callon Delivering Economic Returns in Permian, Eagle Ford at Current Strip Prices, Says CEO

Callon Delivering Economic Returns in Permian, Eagle Ford at Current Strip Prices, Says CEO

Houston-based Callon Petroleum Co., whose portfolio stretches across the Permian Basin’s two major formations and across the Eagle Ford Shale, reduced costs and delivered “near-term economic returns” at current strip prices during the third quarter, the CEO said. Net production jumped 170% to 102,000 boe/d year/year, above expectations, while capital spending was $38 million, below…

November 3, 2020
Diamondback Reduces Permian Flaring 74%, Discounts Any Merger Talk

Diamondback Reduces Permian Flaring 74%, Discounts Any Merger Talk

Permian Basin pure-play Diamondback Energy Inc. improved its environmental stewardship in the third quarter, with only 0.5% net natural gas production flared, down 74% year/year. The operations also are strong enough to not look for any merger partner, CEO Travis Stice said. The Midland, TX-based independent reduced its lease operating expenses and general/administrative costs in…

November 3, 2020
Concho’s Permian Costs Decline 27%, Production Lower Too

Concho’s Permian Costs Decline 27%, Production Lower Too

Permian Basin heavyweight Concho Resources Inc., now in a quiet period as the mega-merger with ConocoPhillips is readied, said its oil and gas production, along with profits, declined in the third quarter. Earlier this month, Houston-based ConocoPhillips clinched an all-stock takeover of Concho worth $9.7 billion. The Midland, TX-based independent is the fifth-largest producer in…

October 28, 2020