Permian Basin News Pulse November 2021

Posted: December 22, 2021

The Permian Basin | November 2021

Field Overview

Located in West Texas, the Permian Basin has been producing oil for over 100 years. It leads the US in oil production and estimates put 43 billion bbl of oil still in the Permian; 80% of those reserves are believed to be at less than 10,000 feet. Some top formations are the Wolfcamp, Upper/Lower Spraberry, and the Leonard.


State Drilling Statistics

Active Drilling Rigs in Basin- 286 (+15)
Total Rigs in Texas- 272 (+18)
Total Rigs in United States- 569 (+19)
Total U.S. Rigs 76% YTD

Top Producer by BOE – Pioneer

Permian Permitting Data
Permits Approved – 636


Basin Highlights

Diamondback Energy Boosts Dividend after Earnings Top Estimates

​​Diamondback Energy Inc., a U.S. shale producer, beat Wall Street third-quarter profit estimates and increased its dividend on Nov. 1 as the oil market recovers from pandemic lows, pushing prices to levels not seen in years. The Midland, Texas-based company reported adjusted earnings of $536 million, or $2.94 per share, for the quarter, compared to $2.77 per share expected. Diamondback has pledged to return half of its free cash flow to stockholders beginning in the fourth quarter of this year, and its board of directors has recently authorized a $2 billion share repurchase program.

Continental Resources Enters Permian Basin in $3.25 Billion Expansion

Continental Resources Inc. is entering the country’s top shale region after nearly a half-century as a premier US oil and gas producer. On Nov. 3, the Oklahoma City-based business reached an agreement with Pioneer Natural Resources Co. to buy all of Pioneer’s assets in the Delaware Basin region of the Permian for $3.25 billion in cash. In a press release, CEO Bill Berry said, “Continental’s foundation has always been built upon a strong geology-led corporate strategy. This continues today and has directly led us to our new strategic position in the Permian Basin.”

Colgate Energy Continues Permian Expansion with $190 Million New Mexico Bolt-on

On Nov. 7, Colgate Energy Partners III LLC reached a definitive deal with an unnamed seller to purchase about 22,000 net acres in New Mexico’s Eddy and Lea counties for $190 million, immediately offsetting Colgate’s existing position. Colgate Energy, a privately held company, has made three acquisitions so far this year. Previously, the company completed two purchases in West Texas’ southern Delaware Basin: first, an all-stock acquisition of Luxe Energy, and then a $508 million cash acquisition of land from Occidental Petroleum Corp. in Reeves and Ward counties.

Brazos Midstream Acquires Permian Gas Gathering Systems from Diamondback Energy

With two large agreements with Diamondback Energy Inc. and its midstream company, Brazos Midstream recently expanded its footprint in the Permian Basin. Brazos is one of the largest private natural gas and crude oil midstream enterprises in the Delaware Basin of the Permian Basin, with headquarters in Fort Worth, Texas. However, the business announced that it has extended to the Midland Basin with the purchase of Diamondback’s Mustang Springs Gas Gathering System, marking Brazos’ first purchase on the Midland Basin side of the Permian. The company’s newly created affiliate Brazos Midland purchased the Mustang Springs Gas Gathering System, which is located in the Northern Midland Basin. The sale of the Mustang Springs Gas Gathering assets resulted in a net consideration of $54 million for Diamondback.


Operators with Highest Permitting

RankCompanyPermits
Approved
1Endeavor44
2Devon41
2ExxonMobil41
4Pioneer35
5Diamondback31
Hyperlinks to available Q3 2021 Reports

Top Producers By BOE—————————— –

ChangeRankCompanyProduction (mmBOE) (7/21)
1Pioneer 179.6
2OXY 136.4
3Conocophillips 130.0
4EOG 124.8
5XTO 117.2
Hyperlinks to available Q3 2021 Reports

Counties with Highest Permitting

RankCompanyPermits
Approved
1Martin113
2Eddy100
3Lea93
4Howard60
4Upton38

Rig Count


Texas Oil Production


Texas Gas Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics

Related Tags: News Pulse | permian | texas

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