New Mexico oil production has gone over the 1 million barrels per day mark.
Layne Water and the GLO redoing their deal to develop water resources on GLO land.
Economist points out growing production despite fewer employees and rigs due to efficiency gains.
Oilfield Water Logistics is acquiring disposal wells and pipelines from EOG.
Construction starting on the NGPL gas line extension in Reeves, Ward and Loving to tie into Waha better.
Laredo Petroleum kicked off Permian E&P earnings season with a quarterly loss of $242 million in 4Q19 and full year loss $343 million FY19, after impairment charges of $223MM and $621MM. Laredo made a couple of bolt-on acreage acquisitions, refinanced debt, and spaces wells wider apart. Production increased despite 25% reduction in capital expenditures. Free cash flow was positive $60 million for FY19. Laredo’s $1.2 billion debt exceeds its $842 million capital (140% D/E ratio). Management described it as a “good quarter” and is bullish on their new acreage in Howard County.
Next batch of Permian E&P earnings are eight companies on February 19-20.
Important news on Apache in this thread already started here - Link
Waha gas prices have turned negative again. -.67 cents/MMBtu on Monday.
Expect a lot of shut ins and flaring this Spring. Also, keep an eye out for operators who try to pass on the loss in your royalty statements. Not sure about you, but my lease says the operator is supposed to pay me a royalty, not deduct me a royalty.
Wade, what can one do when operator does deduct royalties for negative gas prices? Has there been any case law addressing the subject yet. My Lease says free of all cost, etc. thanks for any leads you can pass on.
There was a paper on it at the last Advanced Oil and Gas law seminar, but no reported cases I know of. If you have a cost free lease they should not be able to deduct the losses, in my opinion. If they can deduct production expenses and that creates a loss, it’s a tougher argument.
I was going to post notices of capital expenditure cuts by Permian operators, but they have come so fast and furious, just assume everyone is cutting 25% plus (mostly plus, for some all drilling is cut). Saw announcements from Noble, Devon, EOG, Apache, Murphy Oil, QEP, Bonanza Creek, Exxon, Matador, PDC, and Ring.
WPX closed its acquisition of Felix.
N.M. Governor vetoed part of budget funding over 200 road projects in the state, citing oil price concerns. I guess with a slow down in traffic, those roads will just fix themselves. Plus, if memory serves, N.M. roads have never been anything to brag about to begin with.
Enterprises’ Mentone plant began service.
Centennial pawned off, er sold, its produced water system to WaterBridge for $225 million.
Want an example of how the anti-oil and gas bloggers mislead people? Here is an article talking about how all the shale drillers are going to go bust because the Permian wells have too much gas and condensate (which burns cleaner, if I am not mistaken, than heavy crude). The picture they use to make it look like horizontal drilling is scarring the landscape? The Yates field aerial, of old vertical wells, most 30+ years old.
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OneOK expanding its West Texas LPG pipeline for $310 million.
Before the price crash, Ring energy announced 10 horizontals in Yoakum County.
Hunt Oil pulled Sprayberry permits in Glasscock County.
Roy, I have to say, as an owner of mineral deeds myself, that I appreciate that Elizabeth and her husband divested themselves of the minerals (even if to their children) before she entered public service. I know that I am terribly conflicted about fracking and my own lease. It hasn’t stopped anything - but I wouldn’t cry if it did, our Earth is precious and we should be environmentally conscious. Please don’t tell me fracking doesn’t contaminate water or that it can’t possibly cause earthquakes (I know better).