ConocoPhillips’ Eagle Ford production will double over the coming year. The company released fourth quarter earnings on January 25, along with more detail in regards to 2012. The company exceeded 50,000 boe/d in Q4 of 2011 and expects to grow production to more than 100,000 boe/d by the end of 2012.
Output would already exceed 60,000 boe/d, but Eagle Ford pipeline and midstream constraints have limited production to date. As additional pipeline and gathering comes online, Conoco will add the 10,000 boe/d held back by constraints and add more than 40,000 boe/d from drilling in 2012. Current plans call for 16 rigs to drill 180 wells in 2012. ConocoPhillip’s activity centers around its core acreage in the DeWitt County and Karnes County areas.
Conoco expects to reach peak Eagle Ford production of 140,000 boe/d later in the decade, but that number is likely conservative as the company begins to direct more capital to higher value liquids plays. If natural gas prices remain low, we expect additional capital will be directed to liquids plays in the Permian, Bakken, and Eagle Ford.