EP Energy Expands Operations

EP Energy Expands in Texas
EP Energy Expands in Texas

Houston -based EP Energy plans to expand its presence in the Eagle Ford by adding new training, office and warehouse space to its operations in Dilley.

Related: Penn Virginia Invests in the Eagle Ford

EP Energy currently holds over 91,000 acres in the Eagle Ford with activity in La Salle and Atascosa counties. In addition to adding 8,300 square feet of work, the $1.3 million construction project will likely add new jobs to the area.

The company reported strong first quarter results for its Eagle Ford operations and touted improved well performance and significantly lowering well costs. Additionally, about two-thirds of the Q1 capital was allocated to the Eagle Ford program.

We also continue to see execution improvements. We have reduced our average drilling cycle times from 10 days to 9 days and this is in an asset that we have been drilling in for over five years. Our 40-acre development is driving cost efficiencies, due to the use of three and four well pads. Importantly this development is improving our reserve recoveries per section which results in improved returns from our capital program.
— Clay Carrell - COO

Q1 Highlights for Eagle Ford:

  • Completed 38 wells across its Eagle Ford program
  • Grew oil production to 38.0 MBbls/d, a 20 percent increase compared with the same period in 2014
  • Total equivalent production was 54.7 MBoe/d, an 18 percent increase compared with the same period in 2014
  • Reducing the midpoint of our per unit cost ranges by over 5%
  • Reduced the average drilling cycle times from 10 days to 9 days

Eagle Ford Operator EP Energy Preparing For IPO

EP Energy Eagle Ford Acreage Map
EP Energy Eagle Ford Acreage Map

EP Energy (EPE) has filed to go public. The company was El Paso Corporation's upstream subsidiary and was sold to private investors prior to the Kinder Morgan acquisition of El Paso.

Read more in the article Apollo Buys El Paso's E&P Unit - $7.15 Billion.

EP Energy's primary operations are located in the Eagle Ford, Permian Basin, and Uinta Basin in Utah.

EP Energy has 93,000 net acres and operates 167 wells (as of March '13) in the Eagle Ford. The company is running six rigs in the region and plans to drill 100+ wells in 2013. Eagle Ford production has grown from near zero before 2010 to more than 30,000 boe/d as of the second quarter.

Led by the Eagle Ford, oil production across the company's portfolio has grown almost three-fold since the beginning of 2011.

The company has yet to release much in regard to its IPO. The filing process has started and company has said it will raise as much as $100 million. That means it will stay under the control of its private equity owners. Watch for more information from the company in the coming weeks.