Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Wed, 04 Mar 2015 14:34:08 +0000 en-US hourly 1 http://wordpress.org/?v=4.1 Swift Energy Plans Massive Cuts http://eaglefordshale.com/news/swift-energy-plans-massive-cuts/ http://eaglefordshale.com/news/swift-energy-plans-massive-cuts/#respond Wed, 04 Mar 2015 14:34:08 +0000 http://eaglefordshale.com/?p=7429 Swift Energy in Eagle Ford

Swift Energy in the Eagle Ford

Swift Energy announces its 2014 results and anticipates 2015 by slashing spending by an astonishing 70%.

In its earnings call in late February, Swift Energy reported a net loss for the fourth quarter of 2014 of $10.9 million, compared to a net income of $4.7 million in the same quarter in 2013. The company also saw flat production between Q3 and Q4 with overall production numbers decreasing 3% from 2013 levels.

The bright spot for Swift in 2014 was what happened in the company’s Eagle Ford operations, which received approximately 85% of 2014 capital spending and saw a full year production increase of 32% from 2013. Additionally, Swift acquired another 12,635 acres of high quality, Eagle Ford gas acreage at in La Salle County.

Swift COO, Bob Banks commented, “We believe our 2014 operation results clearly demonstrate our expertise in the Eagle Ford providing us with the multiple year drilling inventories at current commodity pricing and corresponding cost structures.”

Related: Swift Energy – PT Saka Energi Close Eagle Ford JV Deal

Looking to the new year, Swift plans for massive cuts in its capital spending while still focusing on the Eagle Ford.

Terry Swift, CEO of Swift Energy announced plans for 2015: “I want to be very clear that we’re very aware of the commodity environment and the various opportunities as well as threats of continued low oil and gas prices. We will manage and operate in such way as to seek the best outcomes for all of our stakeholders. First, we revised our capital budget to the range of 110 million to 125 million. This is roughly 70% below our 2014 capital spend and at these levels we’re targeting production to be down between 6% to 8%.”

Swift Energy is currently active in the following Eagle Ford counties:

Read more about Swift Energy in the Eagle Ford

Read full report at swiftenergy.com

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Shopping for Good Deals http://eaglefordshale.com/news/shopping-good-deals/ http://eaglefordshale.com/news/shopping-good-deals/#respond Tue, 03 Mar 2015 16:59:03 +0000 http://eaglefordshale.com/?p=7420 Kenny DuBose Photo

Kenny DuBose: Investor and Owner eaglefordshale.com

At the recent NAPE Summit in Houston, people from all sectors of the energy industry came together at a unique event for three days of networking, education and deal-making.

Certainly, the challenges of low oil prices were on everyone’s mind. But if people were worried, the thousands in attendance did not give it away. The arena was filled with bankers, investors and drilling companies looking to talk business and shopping for good deals.

Related: NAPE Energy Summit 2015 

NPR was on site at NAPE and talking to attendees about their perspectives and concerns. Kenny DuBose, mineral investor and shale oil publisher, sat down with John Ydstie and commented on his experience.

Mr. DuBose’s comments were similar to others heard throughout the conference, as industry leaders and company owners expressed optimism about the future.

Related: Small Oil Companies Express Optimism

Access full interview at NPR.com

 

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Eagle Ford Rig Count Continues Decline http://eaglefordshale.com/news/eagle-ford-rig-count-continues-decline/ http://eaglefordshale.com/news/eagle-ford-rig-count-continues-decline/#respond Mon, 02 Mar 2015 16:12:33 +0000 http://eaglefordshale.com/?p=7412 Eagle Ford Rig Count

Eagle Ford Rig Count Down to 188

The Eagle Ford Shale rig count decreased by four to 188 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, Devon Energy announced it finished an outstanding year as it rebounded from a $20 million net loss in 2013 to end 2014 with net earnings of $1.6 billion. The company’s Q4 total production rose 20% to 239,000 barrels per day, which represents a 48% increase from 2013.

Read more: Devon Energy Reports Exceptional Q4

The U.S. rig count fell another 43 to 1267 rigs running by the end of last week. A total of 280 rigs were targeting natural gas (down nine from the previous week) and 986 were targeting oil in the U.S. (33 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc). 570 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties (181 rigs). The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas increased to 24 rigs running by the end of yesterday. Natural gas prices decreased by $.22 from the previous week at $2.72/mmbtu on Friday afternoon.

The oil rig count decreased by four to 188 rigs running by the end of last week. WTI oil prices decreased by $1.66 from the previous week, trading at $48.84/bbl on Friday afternoon.  A total of 173 rigs are drilling horizontal wells, three rigs are drilling directional wells, and vertical rigs remained at 12 total.  Karnes (28), Dimmit (22), and DeWitt (22) have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 28 28 LEON 2 2
DE WITT 23 22 ZAVALA 2 2
LA SALLE 19 22 FAYETTE 1 1
DIMMIT 24 21 GRIMES 1 1
MCMULLEN 17 19 ROBERTSON 1 1
WEBB 17 17 WILSON 2 1
GONZALES 11 10 AUSTIN 0 0
LAVACA 10 10 BEE 0 0
ATASCOSA 6 6 COLORADO 0 0
BURLESON 6 6 GOLIAD 0 0
LIVE OAK 7 6 LEE 0 0
MADISON 6 6 MAVERICK 0 0
FRIO 4 3 MILAM 0 0
BRAZOS 3 2 WASHINGTON 0 0
DUVAL 2 2 BASTROP 0 0

Eagle Ford Shale News

EOG Reduces Eagle Ford Wells for 2015

Rosetta Resources Sets Two Year Plan

Bradleys, Inc. Earns Prestigious TECO-Westinghouse Blue Diamond Award

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Read more at bakerhughes.com

photo credit: Tim Evanston (CC)

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Bradleys, Inc. Earns Prestigious TECO-Westinghouse Blue Diamond Award http://eaglefordshale.com/news/bradleys-inc-earns-prestigious-teco-westinghouse-blue-diamond-award/ http://eaglefordshale.com/news/bradleys-inc-earns-prestigious-teco-westinghouse-blue-diamond-award/#respond Mon, 02 Mar 2015 01:28:13 +0000 http://eaglefordshale.com/?p=7404 Blue Diamond Award

Bradleys Wins Blue Diamond Award 2013

Bradleys, Inc., a nationally-recognized leader in the electric motor repair industry, is pleased to have been recognized as a TECO-Westinghouse Blue Diamond Tier I Supplier for 2013.  Bradleys has provided large electric motor repair, rewinding, horizontal and vertical motor load testing, CNC machining, field services, new motor sales, and climate-controlled motor storage to petrochemical, refining, manufacturing and mining industries for over 85 years. The company’s 110,000 square foot facility rests in the heart of South Texas, just sixty miles from the prolific Eagle Ford Shale oil fields, and employs over 100 motor repair and testing professionals.

The prestigious Blue Diamond Tier I Award is awarded to less than 1% of all TECO-Westinghouse suppliers worldwide. The award scoring process requires outstanding excellence in the following areas: Quality, Cost, Delivery and Service.

“A supplier has to rank at 95% or above in all four categories to be recognized as a Tier I supplier, said a TECO-Westinghouse’s Supply Chain spokesperson, “and it takes a solid 98% to reach a level of excellence worthy of a Blue Diamond Award.” “Time and time again, Bradleys has continued to prove itself a reliable and dependable organization, meeting our delivery schedules, and providing high quality service, while maintaining competitive pricing. These are only a few reasons Bradleys, Inc. was selected to receive the Blue Diamond Award. The Blue Diamond Award is only given to those suppliers that are the best of the best,” he said.

In addition to the Blue Diamond Award, TECO-Westinghouse also awarded Bradleys the “Outstanding Delivery” Award and the “Outstanding Quality” Award for 2013. Bradleys’ performance in these areas ranked at 100%.

“Bradleys is honored to have received the Blue Diamond award,” said Jim Williams, Jr., CEO of Bradleys. “The recognition of our team’s customer-driven focus and performance is much appreciated.”

# # #

For more information, visit www.bradleysmotors.com, or call Darlene Gregory at 361-904-0044 or email dgregory@eastmeetswestproductions.com.

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Marathon Oil Reduces Budget Again http://eaglefordshale.com/news/marathon-oil-reduces-budget/ http://eaglefordshale.com/news/marathon-oil-reduces-budget/#respond Thu, 26 Feb 2015 13:39:45 +0000 http://eaglefordshale.com/?p=7391 Marathon Oil

Marathon Oil in the Eagle Ford

Marathon Oil reported last week it is reducing 2015 capital spending another 20 percent from their initial December forecast.

These cuts bring the projected capex to $3.5 billion, which is less than half of 2013 spending and includes exploration spending of $232 million.

Marathon Oil will continue to focus on activity in the Eagle Ford and plans to spend 41% of its 2015 in the Texas region. Of the $1.4 billion earmarked for the Eagle Ford, approximately $1.0 billion is dedicated to drilling and completions. The company will drill 141-152 net wells and bring 176-192 total wells to sale in the new year.

CEO Lee Tillman commented on the tough decision he faces, “We’re also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant. Our objective is clear–to deliver long-term shareholder value, regardless of the commodity price cycle, by focusing on those elements of our business which we control.”

Marathon Oil in the Eagle Ford

Marathon Oil has increased its acquisitions in the Eagle Ford over the last several years and now holds approximately 211,000 net acres in the Eagle Ford. has invested strategically to grow its presence in the formation’s highest value oil and condensate core areas. Activity is focused on Atascosa, DeWitt, Gonzales and Karnes counties.

Read more about Marathon in the Eagle Ford

Read more at marathonoil.com

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Rosetta Resources Sets Two Year Plan http://eaglefordshale.com/news/rosetta-resources-sets-two-year-plan/ http://eaglefordshale.com/news/rosetta-resources-sets-two-year-plan/#respond Wed, 25 Feb 2015 16:06:18 +0000 http://eaglefordshale.com/?p=7387 RosettaEagleFordMap

Rosetta Eagle Ford Map | Click to Enlarge

Rosetta Resources announced its fourth quarter operational update and released a two year strategic outlook that includes major spending cuts.

In a press release on Tuesday, Rosetta Resources reported a Q4 net income of $185.5 million, which was up from $29.5 million for the same period last year. For the year, the company reported income of $313.6 million, or $5.09 per diluted share, versus net income of $199.4 million in 2013. Production for the quarter increased 41 percent from 2013 and averaged 73 MBoe/d.

Eagle Ford

Rosetta credits annual production records to the ongoing development of their Eagle Ford assets. The company’s capital budget for 2014 included included $666 million for drilling and completion in the Eagle Ford shale, where 94 wells were drilled and 95 wells were completed. Daily production from the Eagle Ford increased 36 percent over last year averaging 65 MBoe/d in the fourth quarter.

Read more about Rosetta’s operations in the Eagle Ford

Two Year Forecast

As Rosetta Resources looks to the future, their spending plan includes holding core acreage positions and conserving as the industry waits for a commodity price recovery. Capital spending will be up to $350 million per year, with a major goal to be to operate within cash flow for 2015 and 2016. The company’s production goals for this time period will be for about 60 thousand barrels of oil equivalent per day.

Jim Craddock, Rosetta’s Chairman, CEO and President commented that “Rosetta has taken important steps the past several months to position the Company on solid footing so that our shareholders will benefit the most from a commodity price recovery.” Craddock added “We’ve chosen to defer production growth and focused instead on living within our means, maintaining our core acreage positions, and defending a target production level of about 60,000 Boe per day.” 

Related: Rosetta Resources Hits Record Production and Proved Reserves

Read the full report at rosettaresources.com

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EOG Reduces Eagle Ford Wells for 2015 http://eaglefordshale.com/news/eog-reduces-eagle-ford-wells-2015/ http://eaglefordshale.com/news/eog-reduces-eagle-ford-wells-2015/#respond Tue, 24 Feb 2015 14:57:24 +0000 http://eaglefordshale.com/?p=7380 EOG Eagle Ford Acreage Map

EOG Eagle Ford Acreage Map | Click to Enlarge

EOG Resources, the largest operator in the Eagle Ford, announced its fourth quarterly earnings and revised capex for 2015. The spending plan includes a capital budget that focuses on the Eagle Ford, Bakken and Delaware Basin.

Read more about EOG Resources in the Eagle Ford

Despite falling crude prices throughout the fall months, EOG managed to finish with strong Q4 numbers. The company reported a quarterly net income at $445 million with an overall 2014 income of $2,915 million, compared to $2,197 million for 2013.

Production in the Eagle Ford was strong across several counties:

  • Karnes County: four wells that produced over 19,000 Bopd, 1,700 Bpd of NGLs and 10 MMcfd of natural gas, collectively
  • La Salle County: two wells with production rates of 2,460 and 2,850 Bopd, plus 165 and 190 Bpd of NGLs and 975 thousand cubic feet per day (Mcfd) and 1.1 MMcfd of natural gas
  • McMullen County: One new well brought online at an initial production rate of 2,535 Bopd, with 180 Bpd of NGLs and 1.1 MMcfd of natural gas

For 2015, EOG plans capital expenditures to range from $4.9 to $5.1 billion including projects for production facilities and midstream expenditures. This represents a 40 percent reduction compared to 2014 spending as the company takes a cautious approach due to continued low crude prices.

The company reported its 2015 plans for the Eagle Ford, saying “In 2015, EOG will execute a balanced drilling program across the length of its Eagle Ford acreage. Due to advancements achieved in the western acreage during the last two years, returns are competitive with the east and a balanced drilling program will maximize operational efficiencies. EOG plans to complete about 345 net wells in the Eagle Ford compared to 534 in 2014.”

Read more at eogresources.com

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Devon Energy Reports Exceptional Q4 http://eaglefordshale.com/news/devon-energy-reports-exceptional-q4/ http://eaglefordshale.com/news/devon-energy-reports-exceptional-q4/#respond Mon, 23 Feb 2015 20:15:26 +0000 http://eaglefordshale.com/?p=7368 Devon Energy in the Eagle Ford

Devon Energy in the Eagle Ford

In its quarterly report, Devon Energy announced it finished an “outstanding year” as it rebounded from a $20 million net loss in 2013 to end 2014 with net earnings of $1.6 billion.

Devon’s fourth-quarter total production rose 20% to 239,000 barrels per day, which represents a 48% increase from 2013.

The report credits the Eagle Ford’s prolific wells for these record numbers. Devon Energy is active in over 82,000 acres in DeWitt and Lavaca counties in Texas.

Related: Devon Banking on High Returns from Eagle Ford Investment

“Devon delivered another exceptional performance in the fourth quarter, rounding out an outstanding year for the company, including a significant repositioning of the portfolio,” said John Richels, president and CEO.”

Looking to 2015, Devon has significantly reduced its capital budget for next year by 20% to $4.96 billion. The company plans to slash its spending in all areas except the Eagle Ford, including a 21% cut in exploration and production. The company predicts oil production will increase 20% to 25% in 2015 and they plan to operate on 13 rigs for 2015, as compared with more than 20 rigs last year.

Richels further comments that, “With strong results from our enhanced completions and a focus on core development areas, we expect growth in oil production to be between 20 and 25 percent in 2015.” 

In other Devon news, Chief Executive John Richels announced in December his plans to retire at the end of July. It is expected that their Chief Operating Officer, Dave Hager, will be named as his successor. Read more here.

Get the full report at devonenergy.com

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Eagle Ford Rig Count Falls to 192 http://eaglefordshale.com/news/eagle-ford-rig-count-falls-192/ http://eaglefordshale.com/news/eagle-ford-rig-count-falls-192/#respond Sat, 21 Feb 2015 00:05:09 +0000 http://eaglefordshale.com/?p=7364 Eagle ford rig counts

Eagle Ford Rig Counts Down

The Eagle Ford Shale rig count decreased by four to 192 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, Chesapeake Energy filed a lawsuit against American Energy Partners. The suit alleges former CEO Aubrey McClendon stole confidential documents including maps of oil and gas prospects before leaving the company in 2013.

Read more: Chesapeake Sues American Energy Partners

The U.S. rig count fell another 48 to 1310 rigs running by the end of last week. A total of 289 rigs were targeting natural gas (down 11 from the previous week) and 1019 were targeting oil in the U.S. (37 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 576 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties (181 rigs). The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas remained flat at 22 rigs running by the end of yesterday. Natural gas prices increased by $.14 from the previous week at $2.94/mmbtu on Friday afternoon.

The oil rig count decreased by four to 192 rigs running by the end of last week. WTI oil prices decreased by $2.14 from the previous week, trading at $50.50/bbl on Friday morning. A total of 177 rigs are drilling horizontal wells, three rigs are drilling directional wells, and vertical rigs increased by three to 12 total.  Karnes (28), Dimmit (24), and DeWitt (23) have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 31 28 LEON 2 2
DIMMIT 25 24 WILSON 1 2
DE WITT 23 23 ZAVALA 2 2
LA SALLE 18 19 FAYETTE 2 1
MCMULLEN 21 17 GRIMES 0 1
WEBB 17 17 ROBERTSON 0 1
GONZALES 11 11 AUSTIN 0 0
LAVACA 10 10 BEE 0 0
LIVE OAK 5 7 COLORADO 0 0
ATASCOSA 6 6 GOLIAD 0 0
BURLESON 7 6 LEE 0 0
MADISON 7 6 MAVERICK 0 0
FRIO 4 4 MILAM 0 0
BRAZOS 4 3 WASHINGTON 0 0
DUVAL 0 2 BASTROP 0 0

Eagle Ford Shale News

Apache Corp Reports Q4 Losses

Repsol to Aquire Talisman Energy

NAPE Energy Summit 2015

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Read more at bakerhughes.com

 

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Repsol to Aquire Talisman Energy http://eaglefordshale.com/news/repsol-aquire-talisman-energy/ http://eaglefordshale.com/news/repsol-aquire-talisman-energy/#respond Thu, 19 Feb 2015 15:04:10 +0000 http://eaglefordshale.com/?p=7360 Talisman Energy Eagle Ford Shale Acreage Map

Talisman Energy in the Eagle Ford

Talisman Energy shareholders unanimously agreed Tuesday to a deal that would finalize the sale of the company to Repsol. The deal includes includes the valuable Eagle Ford assets of of approximately 61,000 net acres of land.

In an organizational letter in 2014, the President and CEO expressed optimism for the future  saying, “2013 was a turnaround year for Talisman…and they are emerging as a stronger, more predictable company with better opportunities for profitable growth.” Unfortunately the drastic drop in crude prices proved too much for the company and shares began to drop sharply in November. A December announcement of the acquisition soon followed.

The company reported a $1.59 billion loss in the fourth quarter of 2014, and fell shy of its expected capex by $.2 billion. Additionally, the company reported that it would cut 300 jobs due to falling production and rising operating costs.

“This deal creates significant and immediate value for Talisman stakeholders,” said Chuck Williamson, Chairman of Talisman’s Board of Directors. “Importantly, the deal underscores Repsol’s strong belief in the high quality portfolio that Talisman has worked hard to develop. Repsol is a world-class operator with a solid track record and the financial capability to continue the development of these assets within their international portfolio. I am proud of the company that our employees, past and present, have built and I believe this transaction represents new opportunities for them in Canada and around the world.”

Highlights:

  • All-cash price of US$8.00 (C$9.33) per Talisman common share delivers significant and immediate value to Talisman common shareholders.
  • The $8.3 billion deal includes assumed debt of $4.7 billion
  • The transaction received the unanimous approval of Talisman’s and Repsol’s boards of directors.
  • Repsol and Talisman will create more competitive and more diversified global energy company, producing over 680 mboe/d, have refining capacity of 1 mboe/d, and have a presence in over 50 countries with 27,000 employees.
  • The transaction is targeted to close in the second quarter of 2015.

Talisman boasts that its Eagle Ford interests are among its most valuable assets. Currently, they are activity in the following Texas counties:

Read more at talismanenergy.com

 

 

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