Permian Basin

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
Crestwood Sees Renewed Bakken, Permian Activity Driving 4Q Volumes

Crestwood Sees Renewed Bakken, Permian Activity Driving 4Q Volumes

Crestwood Equity Partners LP expects to finish out 2020 on record footing as a resumption of normal operations in core areas of the Bakken Shale and Permian Basin drive higher volumes of natural gas, oil and water. The Northeast also has “good potential for growth” as business in the challenging environment has stabilized, and prospects…

October 28, 2020
Double E Pipe Given FERC OK to Move Permian Natural Gas

Double E Pipe Given FERC OK to Move Permian Natural Gas

FERC last week approved the 1.35 million Dth/d Double E Pipeline LLC project to transport Permian Basin natural gas.  The Double E project would offer firm transportation service from producing areas in the Delaware sub-basin in southeastern New Mexico and West Texas to delivery points near the Waha hub.  Project backer Summit Midstream Partners LP…

October 20, 2020
New Mexico’s Reliance on Fossil Fuels Said Facing Reckoning from Volatile Oil Prices

New Mexico’s Reliance on Fossil Fuels Said Facing Reckoning from Volatile Oil Prices

New Mexico’s fiscal health is undergoing an “unprecedented sea change” with global markets signaling the “beginning of the end” for the state’s financial reliance on fossil fuels, the Institute for Energy Economics and Financial Analysis (IEEFA) reported Tuesday. IEFFA’s Tom Sanzillo, director of finance, co-authored the report with energy policy analyst Suzanne Mattei.  “Leases, royalty…

October 20, 2020
ConocoPhillips Strikes $9.7B Deal to Buy Concho, Create Permian Behemoth

ConocoPhillips Strikes $9.7B Deal to Buy Concho, Create Permian Behemoth

ConocoPhillips on Monday announced it is taking over Concho Resources Inc. for $9.7 billion in stock, forming a giant in the Permian Basin that would rival the output of the biggest players in the nation’s most productive oilfield. Concho, a Permian pure-play, is the fifth-largest producer by volume in the massive field. The combination marks…

October 19, 2020
Oil-Directed Drilling Surges Higher as U.S. Patch Adds 13 Rigs

Oil-Directed Drilling Surges Higher as U.S. Patch Adds 13 Rigs

The U.S. rig count surged 13 units higher to finish at 282 for the week ending Friday (Oct. 16) on the strength of gains in oil-directed drilling, according to the latest data from oilfield services provider Baker Hughes Co. (BKR). Twelve oil-directed rigs and one natural gas-directed rig were added in the United States for…

October 16, 2020
E&Ps Doubling Up Federal Land Permit Requests, Possibly in Anticipation of Biden Win

E&Ps Doubling Up Federal Land Permit Requests, Possibly in Anticipation of Biden Win

U.S. oil and gas permitting on federal lands jumped 8% in September from August, with Texas operators posting the largest increase since March, according to a monthly tally by Evercore ISI. The firm every month compiles permit data from federal and state sources, which provides a bird’s eye view of where drilling by exploration and…

October 15, 2020
Permian Output Seen Ramping Up in 2021

Permian Output Seen Ramping Up in 2021

Production in the Permian Basin will likely decline through the year but then begin to increase through at least 2026, even if prices do not rise significantly, according to analysts. “We see the Permian as a relative winner among domestic basins given favorable production economics, independent of a call on higher commodity prices,” the Morgan…

October 6, 2020