Eagle Ford Shale News

Marathon Oil Reduces Budget Again

41% of 2015 Spending Targets Eagle Ford
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

Rosetta Resources Sets Two Year Plan

Company Reports Record Production for 2014
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

EOG Reduces Eagle Ford Wells for 2015

Company Slashes Capex by 40%
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

Devon Energy Reports Exceptional Q4

Company Slashes 2015 Spending by 20%
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

Eagle Ford Rig Count Falls to 192

Chesapeake Alleges Former CEO Stole Trade Secrets
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 increased 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

 

Repsol to Aquire Talisman Energy

Shareholders Agree to $8.3 billion Deal
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

 

 

Chesapeake Sues American Energy Partners

Suit Alleges McClendon Stole Trade Secrets
Chesapeake Eagle Ford Drilling Map

Chesapeake Eagle Ford Acreage – Drilling Map

Chesapeake Energy, a major producer in the Eagle Ford, has filed a lawsuit against former CEO Aubrey McClendon’s new company, American Energy Partners. The suit alleges McClendon stole confidential documents including maps of oil and gas prospects before leaving the company in 2013.

The suit was filed on Tuesday in Oklahoma County District Court and relies on a forensic audit of Mr. McClendon’s emails that are said to contain evidence of wrongdoing.

In a prepared statement, Mr. McClendon commented  “It is beyond belief that the company that I co-founded 25 years ago and where I worked tirelessly to build it into one of America’s largest and most successful oil-and-gas producers has now decided to add insult to injury almost two years to the day after my resignation by wrongly accusing me of misappropriating information.”

McClendon founded Chesapeake in 1989 and came under scrutiny multiple times throughout the past several years as his position magnified. He was named one of the few eagle Ford Billionaires in 2013.

Read more:  CHK Plans For New Leadership

Shares of Chesapeake stock declined this week as news of the legal trouble surfaced on Tuesday.

Chesapeake is active all across the Eagle Ford including Atascosa County, Dimmit County, Duval County, Frio County, Goliad County, LaSalle County, McMullen County, Washington County, Webb County and Zavala County.

Read more at wsj.com

Apache Corp Reports Q4 Losses

Company Plans to Operate 1-2 Eagle Ford Rigs in 2015

Apache Corporation LogoApache Corporation announced this week that it plans to reduce its Eagle Ford rig count from 12 (December) to four by the end of the month. Further reductions include plans to operate one to two rigs in the Eagle Ford during 2015.  These cuts are part of the bigger forecast for the company that includes a 70 percent reduction in rigs companywide.

Read more about Apache Corp. in the Eagle Ford

The company reported a fourth-quarter 2014 net loss of $4.8 billion compared to a profit last year of $174 million. Despite huge losses and future uncertainty, the report claimed that the company is exciting the year with “strong operational momentum”. Additional Apache news for 2015 includes a capital budget of $2.1 to $2.3 billion and estimated production to remain flat.

Related: ConocoPhillips Reports Q4 Losses

This announcement came only a few weeks after former Apache president and chief executive officer, Steven Farris stepped down from his position. The abrupt announcement on January 20, 2015 followed Ferris’ 25 years of service to the company. The new leadership faces tough decision in the midst of the current oil price uncertainty and where to focus its resources.

John J. Christmann IV, Apache’s chief executive officer and president. “Since our Nov. 20th North American Update, oil and gas prices have decreased substantially, prompting us to act quickly and decisively to reduce activity levels and reset our well cost structure.  We have reduced our rig count from an average of 91 rigs in the third quarter of 2014 to an estimated 27 rigs by the end of this month. We have also reduced our frac crews by approximately 50 percent during the same time period and are delaying some well completions until service costs decrease materially.”

Read full press release at apachecorp.com

NAPE Energy Summit 2015

Industry Leaders Express Optimism for Future
NAPE 2015

NAPE Summit Fast Facts 2015

Last week, nearly 15,000 participants descended on Houston for the 2015 NAPE Summit, featuring international and business conferences as well as over 850 exhibitors. This annual networking event brings prospects, producers and purchasers together to forge important business connections and hear industry thought leaders.

Related: Winter NAPE EXPO Business Conference Highlights – 2014

If low oil prices are a predictor of where the industry is headed, you couldn’t tell by the packed convention hall and the atmosphere of optimism. Keynote speakers including Jack Stark, President and COO of Continental Resources, focused on the record production set by North American producers in the last five years. He listed some of the industry’s recent wins:
  • Unprecedented growth from 2005-2015
  • World changing upstream technologies
  • Discovering a whole new, vast class of reservoir (shale plays)
  • Reserves at all time highs
  • Created jobs and increased our energy independence
  • Improved efficiencies such as cutting drilling time from 45 days to 17
  • A midstream evolution: pipelines, rail, rail to barge and connections to all coasts

The Chief Upstream Strategist for IHS, Bob Fryklund, encouraged participants not to push the panic button too quickly. Fryklund acknowledged that the conversation has changed in recent months but was quick to remind participants of the cyclical nature of the industry and that history indicated we would weather this storm.

During opening comments, Bob Fryklund commented, “OPEC and others discount the resilience of North America.” He added that, “we will not be a diminished producer because of what we are going through.”

The Keynote speakers took an optimistic tone, but some attendees expressed more caution. Several, who wished to remain anonymous, shared that they are convinced that a recovery is farther down the road. They expressed concern for their employees and their shareholders and are working to make hard decisions that will see them through the rest of 2015.

For more about NAPE, visit napexpo.com

Eagle Ford Shale Rigs Down to 196

ConocoPhillips to Cut 2015 Spending for EFS
ConocoPhillips Revises 2015 Capex

ConocoPhillips Revises 2015 Capex

The Eagle Ford Shale rig count decreased by five to 196 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, ConocoPhillips announced fourth quarter results for the 2014 and updated its capex plans for the coming year. Though production is expected to remain high, 2015 projections include a cut in spending for the Eagle Ford.

Read more: ConocoPhillips Reports Q4 Losses

The U.S. rig count fell another 98 to 1358 rigs running by the end of last week. A total of 300 rigs were targeting natural gas (down 14 from the previous week) and 1056 were targeting oil in the U.S. (84 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.). 598 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 by three to 22 rigs running by the end of last week. Natural gas prices increased by $.22 from the previous week at $2.80/mmbtu on Friday afternoon.

The oil rig count decreased by five to 196 rigs running by the end of last week. WTI oil prices increased by $.95 from the previous week, trading at $52.64/bbl on Friday afternoon. A total of 185 rigs are drilling horizontal wells, two rigs are drilling directional wells, and nine rigs are drilling vertical wells. Karnes (31), Dimmit (25), 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 31 LEON 1 2
DIMMIT 26 25 ZAVALA 2 2
DE WITT 23 23 WILSON 1 1
MCMULLEN 21 21 AUSTIN 0 0
LA SALLE 18 18 BEE 0 0
WEBB 17 17 COLORADO 0 0
GONZALES 12 11 DUVAL 0 0
LAVACA 10 10 GOLIAD 0 0
BURLESON 7 7 GRIMES 1 0
MADISON 9 7 LEE 0 0
ATASCOSA 9 6 MAVERICK 0 0
LIVE OAK 2 5 MILAM 0 0
BRAZOS 3 4 ROBERTSON 0 0
FRIO 6 4 WASHINGTON 0 0
FAYETTE 2 2 BASTROP 0 0

Eagle Ford Shale News

Pioneer Resources Reveals Q4 & 2015 Capex

Comstock Resources Q4 Report

ConocoPhillips Reports Q4 Losses

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.

Rad full report at bakerhughes.com

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