Permian Basin

After bolting on more than 30,000 net acres in the second quarter, Permian pure-play operator Parsley Energy Inc. saw oil production surge more than 80% and the company raised its full-year production guidance for the second time this year.

SM Energy Co. has agreed to acquire 24,783 net acres in Howard County in West Texas, expanding its Midland Basin footprint to 46,750 net acres. The company also said it is issuing shares and notes to fund the transaction.

In recent quarters the goal of EOG Resources has been to lower operational costs and achieve a strong return on capital investment in an effort to reset the company to succeed in a low commodity price environment, and a series of achievements this year demonstrate “significant progress” toward those goals, according to CEO Bill Thomas.

EnLink Midstream, the natural gas gathering/transportation partnership controlled by Devon Energy Corp., is accelerating its services in the Permian Basin and Central Oklahoma as activity strengthens across West Texas and into the Midcontinent. Natural gas demand also is growing, expanding services in Louisiana, management said.

Cimarex Energy Co. raised its production and capital expenditures (capex) guidance figures for 2016 and said it will continue running a five-rig drilling program for the rest of the year in order to increase drilling in the Meramec formation and accelerate completions in the Midcontinent and the Permian Basin.

With a resource potential twice as high as originally estimated, WPX Energy Inc. is on a mission to build its Permian Basin portfolio even more, particularly in the Delaware Basin, the company’s CEO said Thursday.

Apache Corp.’s legacy Permian Basin portfolio is still churning out the hits after the operations team produced the best-ever well in history in the Delaware play during the second quarter.

During the second quarter Denver-based SM Energy Co. saw its production grow by 7% over the previous quarter, thanks to improvements in both the Permian Basin and the Eagle Ford Shale, while costs came down.

EagleClaw Midstream Ventures LLCagreed to acquire PennTex Permian LLC from PennTex Midstream Partners LLC. Primarily located in Reeves County, TX, PennTex Permian’s assets include a cryogenic processing plant with 60 MMcf/d capacity, about 90 miles of gathering pipeline and about 35 miles of condensate pipeline. The assets are supported by long-term dedications of more than 75,000 acres. Closing is expected during the third quarter. EagleClaw plans to connect the PennTex system to its East Toyah System, bringing the company’s processing capacity to 120 MMcf/d and gathering pipeline to more than 200 miles served by nine field compressor stations with a total of 20,000 hp of compression. The combined systems serve producers in the Permian’s Delaware Basin targeting stacked pay zones including the Upper and Middle Wolfcamp, Bone Spring and the Avalon Shale formations. EagleClaw also has broken ground on an additional processing plant to serve the region. “Given the Delaware Basin’s stacked pay potential, we believe Reeves County may contain the largest inventory of profitable wells in the U.S. We’re seeing great production and drilling results paired with economics that make sense, even through the downturn,” said EagleClaw CEO Bob Milam.