Drilling & Completions | Top Story | rig reduction 2023
Permian E&P Cut Rigs from 10 Rigs To 5
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Ovintiv, during its 1Q 2023 earnings call provided some update on the remainder of its 2023 development program. One thing we have always stressed is that with the consumation of any deal, upon closing of the transaction, one will see a dramatic reduction in activity. As you might remember, Ovintiv spent $41. billion to acquire properties in the Permian Basin.
This is what the company said during the earnings call.
"Our full year guidance remains unchanged from the update we provided in April when we announced the transaction.
In the Permian, we expect to shift from a 10-rig program at the time the acquisition closes to a 5-rig program by the fourth quarter, with most of the transition happening in Q3. As a result, Q3 will be our highest quarter of capital spend."
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