Permian Basin

Pioneer Natural Resources Co. grew U.S. onshore output during the second quarter, propelled by the Permian Basin, but “unforeseen” drilling delays and commodity prices have led the independent to reduce capital spending and full-year guidance.

Driven by drilling and completion efficiency gains in the Permian’s Delaware sub-basin and in the Midcontinent during the first half of the year, Devon Energy Corp. is trimming its 2017 capital expenditure (capex) budget by $100 million, reflecting an emphasis on returns over growth.

ExxonMobil Corp. and Chevron Corp. proved during the second quarter that it’s possible to turn a profit even at stagnant commodity prices. In the U.S. onshore, there’s no better place today to work than in the Permian Basin, where their rig counts are rising along with production.

Houston-based Falcon Seaboard Resources LLC, helmed by former Texas Lt. Gov. David Dewhurst, on Monday launched a fund that plans to target small Permian Basin investments.

Oil-weighted exploration and production (E&P) companies operating in the prolific Permian Basin have 65% of their output hedged at an average strike price of $50/bbl, which supports aggressive drilling targets this year, according to IHS Markit.

Fracture sand king Fairmount Santrol said Monday it has secured a 40-year lease for 3,250 acres of reserves in the Permian Basin near Kermit, TX, with a 165 million ton mining facility that would be able to produce about 3 million tons/year.

A QEP Resources Inc. subsidiary said Monday it would sell natural gas assets in Wyoming — including all of its assets in the Pinedale Anticline — through two transactions totaling $777.5 million.

Super independent Anadarko Petroleum Corp., which in the past two years has turned its focus to building an arsenal in the onshore and deepwater, plans to pace its upstream spend to manage finicky commodity prices, CEO Al Walker said Tuesday.

Encana Corp. has upped its 2017 production guidance on the strength of second quarter results from its core assets in Texas and Western Canada, management said.