Permian Basin 2018

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PERMIAN BASIN: KEY PLAYERS 18 | October 2018 | Texas and boasts it is a top 12 producer of oil in Texas. The company has approximately 260,000 gross acres in the Midland Basin, 380,000 gross acres in the Northern Delaware Basin, 130,000 gross acres in the New Mexico Shelf and 160,000 gross acres in the Southern Delaware Basin, accord- ing to the company's website. In July Concho completed its acquisition of RSP Permian Inc. Concho's Permian production for the second quarter of 2018 was 21 MMboe, an increase of about 24% from the second quarter of 2017, accord- ing to the company's second-quarter 2018 results report. Average crude oil production for the sec- ond quarter totaled 143,000 bbl/d, an increase of about 26% from the second quarter of 2017. Nat- ural gas production for the second quarter totaled 515 MMcf/d, the report stated. During the second quarter, Concho averaged 21 rigs. Following the closing of the RSP transaction, Concho is running 32 horizontal rigs, including 16 rigs in the Northern Delaware Basin, six rigs in the Southern Delaware Basin, nine rigs in the Midland Basin and one in the New Mexico Shelf, according to the report. Additionally, Concho was utilizing 10 completion crews as of Aug. 1. Devon Energy Corp. Devon Energy Corp. has operations in the Delaware Basin of West Texas and southeast New Mexico with 670,000 net acres. Devon's current focus is in the oil-rich Bone Spring, Leonard Shale, Wolfcamp and Delaware Sands formations. In 2017 the company reported production of 56,000 boe/d (73% liquids) and 184 MMboe reserves in the Delaware Basin, according to Devon's website. In the second quarter of 2018, "light oil produc- tion increased 54% year-over-year in the quarter, driving total volumes in the Delaware to 79,000 boe/d. Growth in the Delaware was driven by pro- lifi c well productivity, where the top 10 wells in the quarter averaged initial 30-day rates of about 3,000 boe/d," according to the company's second-quarter 2018 results report. In the third quarter Devon entered into a defi n- itive agreement to sell 9,600 net acres of noncore Delaware Basin acreage in Ward and Reeves coun- ties to Carrizo Oil & Gas for $215 million, accord- ing to an August press release. Net production from these properties is approximately 2,500 boe/d (60% oil). The transaction is expected to close in the fourth quarter of 2018. Diamondback Energy Inc. Diamondback Energy Inc. solely operates in the Permian Basin with about 230,000 pro forma net acres (211,000 net surface acres) and about 4,700 gross locations, according to an August investor presentation. For the second quarter of 2018, Diamondback reported production of 112,600 boe/d (73% oil) and operated 11 drilling rigs and fi ve dedicated fracturing spreads, according to the company's sec- ond-quarter 2018 results report. Concho Resources is the largest unconventional shale producer in the Permian Basin, with operations focused on acquiring, exploring, developing and producing oil and natural gas resources. (Photo courtesy of Concho Resources)

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