Thursday, January 17, 2013

Got COP? -- SeekingAlpha

Link here to
In the article "ConocoPhillips: Exploiting the Eagle Ford Shale, " the breakeven price for COP's Eagle Ford production is $37/barrel. This is why many oil execs believe the EF to be the most economic shale play in the U.S. 
During Q3 2012, COP was running 14 rigs in the Eagle Ford and the average daily production was 76,000 BOE/day with 79% liquids. The peak production rate achieved in Q3 was 86,000 BOE/day. On the Q3 conference call, management said they expect a peak rate of 100,000 BOE/day in Q4. The company is also adding infrastructure to maximize light crude sales prices at pipeline spec and to maximize its capture of NGLs.
A number of things.

First: this is not an investment site. Do not make any investment decisions based on what you read here.

This is a Bakken-centric blog, but companies operating in both the Eagle Ford and the Bakken are particularly exciting. I am very aware of EOG in both North Dakota and Texas. I had forgotten about COP.

And note the breakeven price for oil in the Eagle Ford: around $40. 

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