Playbooks

Permian Basin 2018

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PERMIAN BASIN: MIDSTREAM 52 | October 2018 | hartenergy.com I n August, the Permian's oil pipelines were essen- tially full. In June, they were at 95% of capacity. Analysts expect it to get worse before it gets bet- ter, with options on non-basis-hedged, Perm- ian-weighted producers' shares seeing maximum pain around year-end. Why was anyone surprised? "Yeah," said Sub- ash Chandra, managing director and senior equity analyst for Guggenheim Securities LLC. The equity market was focused on the upcoming gas takeaway bottleneck out of the Permian, which, according to several analysts' estimates, is happening right about now as well. And publicly held producers' combined guid- ance in fourth-quarter 2017 on their increased Permian oil output for 2018—if combined with The Permian takeaway situation will get worse before it gets better and, possibly, reappear in 2020 or shortly thereafter, securities analysts expect. 3.2 Million Hangry Barrels By Nissa Darbonne Editor-at-Large, Oil and Gas Investor Increased production is keeping pipeline installation crews busy in the Permian Basin. (Photo by Tom Fox, courtesy of Hart Energy's Oil and Gas Investor)

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