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  Economics : Rates of Return/ IRR

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E&P and Gathering WDA Development Plan Beechwood Development Area Provides 90 Potential Utica Locations with Strong Economics WDA Development Update WDA Potential RV-Beechwood Development Area WDA-CRV Area: producing from both Utica and Marcellus wells, with recent development focused on return trips to existing pads Avg. CRV Utica Production: 140 MMcf/d Avg. CRV Marcellus Production: 229 MMcf/d WDA RV-Beechwood Area: 90 potential Utica locations, with economics equal to or greater than prior CRV-Utica development program Consolidated WDA Economics EUR IRR% 15% IRR (Bcf/1000) 2.25(1) (/MMBtu) Utica (RV-Beechwood) 1.5 - 1.8 42% 1.42 Marcellus (CRV Return Trip) 1.1 - 1.2 39% 1.47 24 (1) Internal Rate of Return is for consolidated Seneca and Gathering, is pre-tax, and includes expected gathering capital expenditures, well costs under current cost structure, and non-gathering LOE.
National Fuel Gas Co.
February 2021

Opex is the Biggest Controllable Driver to Well Economics Incremental IRR Sensitivities(1) (12k' SWPA Marcellus Well) Operating expense (Opex) and realized natural gas prices have the largest impact on economics Opex (+/- 0.50/Mcf) (26%) 38% CNX has obsessively focused on its cost EUR (-/+ 0.50 Bcfe/1K') (12%) 13% structure to differentiate its asset portfolio from peers NRI (-/+ 4%) (5%) 5% Acres are more economically developed in CNXs hands vs. peers with higher cost structures Capex (+/- 50/ft) (4%) 5% Source: Company analysis. (1) Base case assumes realized flat price of 2.00 per MMBtu; SWPA average EUR of 2.6 Bcfe per 1,000 feet; 12,000 lateral length; well costs of 700 per foot. 6
CNX Resources
January 2021

MARCELLUS WELL RESULTS Capital efficient and highly productive drilling inventory Marcellus well performance 2018-2020 Average cumulative well production per 1,000 ft lateral 0.8 Avg. 0.7 Avg. 9,500 8,200 30% INCREASE lateral ft lateral ft IN 6-MONTH CUMULATIVE PRODUCTION / LATERAL 0.6 Avg. FT IN 2020 VS 2018 Bcf/1,000 ft lateral 0.5 6,300 lateral ft 0.4 WELL ECONOMICS(1) 0.3 NYMEX Gas Price (US): 2.50/Mcf 3.00/Mcf 0.2 Payout: 2.9 yrs 1.7 yrs 0.1 IRR: 28% 61% Breakeven US (10% IRR): 2.15/Mcf - 1 2 3 4 5 6 7 8 9 10 11 12 Months on production 2018 2019 2020 18 1) Well economics are based on the average 2P reserves booked per undeveloped location (16 Bcf) and a total well cost of US5.9MM.
Enerplus Corp
November 2020

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