Permian Basin 2018

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PERMIAN BASIN: KEY PLAYERS 16 | October 2018 | 2.2 million net acres, it is also one of the basin's largest net acreage holders. The company reported Permian production of 119,000 net bbl (Chevron share) of crude oil, 383 MMcf of natural gas and 45,000 bbl of NGL daily in 2017, according to Chevron's website. As of July, the company was running 19 rigs in the Permian and had eight development areas underway across the Permian in the Delaware and Midland sub-basins, according to a Natural Gas Intelligence article. Net production of 739,000 boe/d in the com- pany's U.S. upstream operations in the second quarter of 2018 was up 38,000 bbl/d from a year earlier, according to Chevron's second-quarter 2018 results report. "Production increases from shale and tight properties in the Permian Basin in Texas and New Mexico were partially offset by the impact of asset sales of 54,000 barrels per day," the report stated. In addition, Chevron's "cash flow contin- ues to increase with the powerful combination of expanding upstream margins and volumes," Chairman and CEO Michael Wirth said in the company's first-quarter 2018 results press release. "Oil and gas production is increasing, most nota- bly in our Gorgon and Wheatstone LNG projects in Australia, and our shale developments in the Permian Basin where production grew 65% from a year ago." Cimarex Energy Co. Cimarex Energy Co. is an independent oil and gas E&P company. The Permian Basin accounted for 48% of the company's year-end 2017 proved reserves and 55% of total production, and the Perm- ian is expected to contribute about 55% to 60% of total 2018 production, according to Cimarex's web- site. In 2017 the company drilled and completed 55 net wells and reported production results of 218 MMcf/d of gas, 44,600 bbl/d of oil and 24,300 bbl/d of NGL. Cimarex invested $375 million in exploration and development during the second quarter of 2018, 59% of which was devoted to the Permian Basin, according to the company's second-quarter 2018 results report. Production from the Permian region averaged 121,744 boe/d and oil volumes averaged 48,797 bbl/d in the second quarter. Cimarex brought 49 gross (22 net) wells on production during the first half of 2018, and the company completed 32 gross (13 net) wells during the second quarter, accord- ing to the report. As of June 30, there were 45 gross (32 net) wells waiting on completion and Cimarex was operating 10 drilling rigs and five completion crews in the region. Concho Resources Concho Resources operations are focused in the Permian Basin of southeast New Mexico and West Chevron builds well pads from which it can drill multiple wells. (Photo courtesy of Chevron)

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