ConocoPhillips’ Capital Budget is Eagle Ford Weighted

Lower 48 Spend Favors the Bakken, Eagle Ford, and Permian
ConocoPhillips Eagle Ford Acreage Map

ConocoPhillips Eagle Ford Acreage Map | Click to Enlarge

ConocoPhillips released plans to spend $15.8 billion in 2013.

More than $4 billion will be spent across the company’s U.S. assets in the Bakken, Barnett, Eagle Ford, Niobrara, and Permian Basin areas. Targets in all of those areas are liquids-rich.

If 2012 is a good indication of what to expect in 2013, Conoco will spend as much as 60% of the $4 billion allocated for the U.S. in South Texas. In 2012, the company spent approximately $2.5 billion developing the play. [Read more…]

NGLs Production in the Eagle Ford Supports Economics

NGLs in the Eagle Ford add needed dollars and cents to the bottom line during times of low natural gas prices. The high btu nature of the gas stream allows companies to market higher valued ethane, propane, butane, and pentanes. The natural gas breakeven for the play when considering NGLs is reported as $1.67 per mcf, but those numbers can be misleading if you don’t know how they were calculated. When you see numbers like that, always ask yourself if it represents the average gas well or all wells or is simply one well in Karnes County.

The take away is the same either way.  We see lots of estimates and all arrows seem to be pointing in a good direction for the Eagle Ford.  [Read more…]