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Back to the Bakken
Wells coming off the confidential list --
Tuesday, June 30, 2020: 73 for the month; 218 for the quarter, 445 for the year:
37048, conf, CLR, Simmental Federal 9-16H1,
36888, conf, Murex, Sophia Drake 25-36H-R,
36887, conf, Murex, Amber Renee 25-36H-R,
36785, conf, Kraken, Double Eagble 33-3 1H,
35666, conf, Zavanna, Stranger 28-21 2H,
Monday, June 29, 2020: 67 for the month; 212 for the quarter, 439 for the year:
- 37049, drl/drl, CLR, Simmental Federal 8-16H, Elm Tree,
- 37050, drl/drl, CLR, Simmental Federal 7-16H2, Elm Tree,
- 35673, SI/A, CLR, Boise 8-24H, Brooklyn, t--; cum 60K in two months;
Pool Date Days BBLS Oil Runs BBLS Water MCF Prod MCF Sold Vent/Flare BAKKEN 4-2020 25 22610 22773 27321 52351 50922 1393 BAKKEN 3-2020 30 37317 37029 40980 73455 68960 4453
- 35658, SI/A, CLR, Addyson 10-23HSL1, Brooklyn, t--; cum 75K in less than 4 months;
Pool Date Days BBLS Oil Runs BBLS Water MCF Prod MCF Sold Vent/Flare BAKKEN 4-2020 25 13602 13669 23776 34781 33031 1750 BAKKEN 3-2020 28 25827 25991 37503 51381 45286 6095 BAKKEN 2-2020 29 24101 24298 37380 49503 48807 696 BAKKEN 1-2020 17 11068 10490 21174 19728 19356 372
Chesapeake Energy’s announcement yesterday that it has filed for Chapter 11 bankruptcy protection is only the latest sign of how much the seismic economic shocks from the pandemic-triggered demand destruction have roiled the U.S. E&P sector.
With equity prices plummeting to historic lows, oil and gas producers have focused their efforts on shoring up their balance sheets and share prices, by tightening their belts going into 2020, reducing capital expenditures by an average 14% in order to boost free cash flow and increase shareholder returns. So, it’s no surprise that the industry has aggressively battened down the hatches operationally and financially, mothballing rigs, suspending completions, shutting-in producing wells, slashing dividends, and suspending share repurchase programs.
First-quarter 2020 earnings releases and investor calls provided a clear picture of the dimensions of the cost-cutting by the 41 U.S. E&Ps we track. But continued uncertainty about the course and duration of the COVID-19 pandemic, the pace of economic recovery, and the outlook for commodity prices have triggered reluctance on the part of oil and gas executives to issue production guidance for the remainder of 2020 and beyond. Today, we review the current capital expenditure reductions by U.S. E&Ps and piece together clues on their impact on oil and gas production.