Thursday, July 27, 2017

Meager, Meager Daily Activity Report -- July 27, 2017

Active rigs:

Active Rigs603573193207

Seven permits renewed:
  • Petro-Hunt (6): six Maverick permits in McKenzie County
  • Denbury: one CHSU ML permit in Bowman County
COP 2Q17 Earnings Conference Call

Link here:

Asset sales program this year, update
  • closed the previously announced Canadian transaction
  • announced the sale of their San Juan Basin and Barnett shale assets
  • announced an agreement for the sale of our Panhandle assets
  • progressing on the sale of their Anadarko position
  • asset sales: $16 billion this year
Asset sales proceeds: to include (maintaining) shareholders distributions)

  • made money on $50 Brent
  • fourth consecutive quarter where operating cash flow more than covered our CAPEX and dividend
  • able to generate free cash flow at oil prices in the $45 - $50 / bbl range
Operations continued
  • plays mentioned in this order: Eagle Ford, Bakken, Permian, Barnett, Niobrara
  • 12 development rigs: Eagle Ford (5), Bakken (4), Permian (3)
  • recently added a sixth rig in the Eagle Ford

Q: great question: proceeding too quickly in unconventional?
A: COP agrees; COP is not moving into manufacturing mode until they understand the geology/completion strategies better, but that doesn't mean they are slowing down

Q: Permian or Eagle Ford
A: Eagle Ford infrastructure in place; not so, in the Permian; in the Permian, COP has to make additional significant commitments to infrastructure in order to expand there

Q; manufacturing mode, when?
A: 2019, most likely; possible as late as 2020

Q: flexibility if oil trends down again?
A: yes

Sophia In Southern California

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