Two Wells Coming Off The Confidential List -- January 8, 2021

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First things first: EPD declares dividend yesterday; slightly higher than previous. $0.45 vs $0.445. Trading around $21, pays about 8%.

 

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Back to the Bakken

 

Active rigs:

$51.52	1/8/2021	01/08/2020	01/08/2019	01/08/2018	01/08/2017
Active Rigs	11	56	63	54	39

 

Two wells coming off the confidential list -- Friday, January 8, 2021: 8 for the month, 8 for the quarter, 8 for the year.

• 37458, loc/NC, Petro-Hunt, USA153-95-13D-12-6H, Phelps Bay,
  
• 35453, drl/A, QEP, MHA 7-27-26H-150-92, 33-061-04300, an Hook, first production, 6/20; t--; cum 151K 11/20;
  

RBN Energy: the 2021 outlook for Permian oil and gas markets. 

If you are looking for a way to focus on 2021 without reflecting on the last 12 months, we might have a deal for you. That’s because Permian natural gas and oil production is starting off this year at levels very close to where they finished 2019. That’s right: as far as the Permian is concerned, you can almost skip entirely over 2020 and pick up right where we left off the prior year. 

Well, for the most part. Oil prices are lower, rig counts have been reduced, and industry consolidation has removed some of the familiar Permian names from the stock ticker. In general, the atmosphere out in West Texas has calmed down dramatically from the headiest days of Permian growth and it’s safe to say it’s easier to grab lunch in Midland these days. Does that mean things in the basin aren’t still interesting out there? If you ask us, the answer is a resounding “No!” For starters, growth is back in the basin, even if it is at a slower pace than in 2019, and natural gas prices are stronger, with negative-price trades a thing of the past thanks to new pipelines. Even crude prices are better than some might think, with Permian barrels pricing over Cushing for many months now. The Permian in 2021 is certainly a half-empty or half-full type of market. We go for the latter in today’s blog, in which we outline our view of production growth in West Texas this year.