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Latest News ; Week Ending August 18, 2018

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This is our weekly recap of activities you might have missed this week.

Commodity Price

Light Crude (WTI) fell from $67.25 on August 10 to $65.78 on Friday August 17, 2018 at 4:30pm.

Brend Crude fell from $73.01 on August 10, 2018 to $71.75 on Friday August 17, 2018 at 4:30pm

Natural Gas rose from $2.94 on August 10, 2018 to $2.97 on Friday August 17, 2018 at 4:30pm

Transactions/A&D/Mergers & Divestitures

Starting at the top Diamondback Energy annouced another major acquistion, the company is buying Energen for $9.2 billion in stock.  The $9.2 billion includes $840 milliion in debt.  This follows the $1.2 billion Diamondback agreed to spend to acquire Ajax Resources last week.

Carrizo has agreed to acquire Southern delaware basin acreage from Devon who continues to core up its Permian position.   Carrizo decided to tap the debt market for $215 million to help fund the transaction.

Capital Markets

Financially strapped PetroQuest opted to not pay its interest payment and have entered into a grace period.  The company said earlier it was explorating strategic alternatives.

Denbury Launched a Private debt offering of $400 million in a senior secured second lien notes due 2024.  The company expects to use the fund to retire it current credit facilty.

Apache hits the debt market, the company priced $1.0 billion in notes due 2028 in a public offering.  The company intends to use the funds to purchase $800 million of its current debt and the remainder for general purpose.  As you might remember, Apache just recently increased its 2018 Capital expenditure by $400 million.

In People news.

Eagle ford focused Contango annouced that its CEO had resigned.

Anadarko Petroleum tapped a new EVP and General Counsel

A large frac company operating in the Permian, Eagle ford annouced a new CFO

W&T Offshore annouced the retirement of its CFO

In Drilling & Production

After deciding to sell midstream assets for $2.6 billion Oxy, has decided to increase its 2018 activity and deploy additional capital  at its permian resource assets.

Concho closed on its deal to acquire RSP Permian and added more rigs to its operations

Cimarex not to be outdone by other permian operators, is doubling its drilling activity in Q3.  The company also disclosed some really good well results from its infill pilot program.

Matador joins other permian operators by increasing its spending plans for 2018.  The company continues to bolt on acreage.

Noble Energy production fell as the company slows production and redirect capital from permian to DJ Basin

WPX continues to show massive production growth.  The company saw its oil production rise 61%.  Long laterals are begining to payoff for the company as they transition completion design.

Midland Permian Pure-Player ups the wells planned for the year to 70 wells up from 60.

Pioneer adding four more rigs to its current drilling plans.

A large cap E&P just boosted its completion plans from 140 to 160 wells for 2018.

Permian Peer Comparison

Q2 2018 vs 2Q 2017 Oil Production Growth

Eagle ford - Completion Activity Review.

Eagle ford completion activity slowed in Q2 vs Q1.

Proppant per well continues to increase quarter after quarter in the Eagle ford play as operators see better results from increase proppant loading

We are also seeing longer laterals as well.