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

Will School Districts Be Forced to Build Housing?

McMullen County owns homes and now Three Rivers is building homes for teachers

Eagle Ford housing issues will likely continue until permanent housing can can meet the needs of the population. In the mean time, we’re going to see investments from places you might not expect. School districts are the latest to enter the fold in home development.

Oilfield workers have brought their families and snapped up available homes across South Texas. That same influx of people and students has increased the need for teachers. The new teachers in turn face the challenge of finding affordable homes. (FYI – there aren’t any)

McMullen County ISD has built homes before and it along with other school districts are determining the best way to invest this time around. With rental homes going for $2,000 per month or more, affordable housing is more scarce than ever. The school districts will have to help or open positions will not likely be filled.

Three Rivers recently purchased a piece of land and placed two mobile homes on the property as a short-term solution. Rohrbach said they’ve budgeted $100,000 to get the project started. Long-term, the plan is to build houses or duplexes on the land. More money will be approved as needed, Rohrbach said.

Rent will be reasonable, he said, at about $500 or $600 a month.

Read the full story addressing the issue at caller.com