US E&P Focusing on the Strength of Permian Assets
Thursday April 21, 2016
Last week in midtown Manhattan, The Independent Petroleum Association of America hosted the 22nd annual Oil & Gas Investment Symposia. In addition to a couple of fantastic industry keynotes (one of which was presented by our own CEO Allen Gilmer), the heads of many premiere E&P companies had an opportunity to present their current investment and operational outlook to members of the investment community.
Although I have a number of posts started from this event, one of the most striking themes was how excited operators are about their Permian assets.Previously we have explored the geology of the both the Delaware and Midland Basins (in a variety of ways), examined some of the interesting qualities of the Bone Springs, looked at activity and new production capacity, checked into vertical wells, and did a fairly thorough analysis of permian rig activity just a couple of weeks ago.
I thought I would pull some of the Permian slides from a few of these presentations and take a look at the Permian from the operators’ point of view.
WPX Energy
Lets start with WPX Energy. WPX is a fairly large independent, who has taken the opportunity of the downturn to focus their play areas (down to three from 7) and their commodity mix (now they have a 60% focus on oil and NGLs). Because of some of the divestitures, they feel pretty strong about their cash position, and are very excited about their “world-class Delaware Basin acreage.”
