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What are upstream operators saying about their proclivity to increase activity in 2H20 and 2021?
The following are quotes from several mgmt teams so far during 2Q earnings season:
#EFT
#OOTT
The following are quotes from several mgmt teams so far during 2Q earnings season:
#EFT
#OOTT
$APA
- We don't envision returning rigs to the Permian unless oil prices recover well into the 50s.
- For prices significantly below $50, capital spending is more likely to be reduced from the $1B. If oil prices rise above $50, we will be very measured with our capital increases
- We don't envision returning rigs to the Permian unless oil prices recover well into the 50s.
- For prices significantly below $50, capital spending is more likely to be reduced from the $1B. If oil prices rise above $50, we will be very measured with our capital increases
$APA
- Strengthening the balance sheet is going to be much more important than growing production volume. To the extent that oil price exceeds $30 WTI we'll use any excess free cash flow that generates to reduce debt.
- Strengthening the balance sheet is going to be much more important than growing production volume. To the extent that oil price exceeds $30 WTI we'll use any excess free cash flow that generates to reduce debt.
$PXD
- initiating investment framework underpinned by 70-80% cash flow reinvestment rate prioritizing free cash flow generation and return of capital. At strip pricing, this targets a total return to shareholders of 10% or greater (base/variable dividend & >5% oil growth)
- initiating investment framework underpinned by 70-80% cash flow reinvestment rate prioritizing free cash flow generation and return of capital. At strip pricing, this targets a total return to shareholders of 10% or greater (base/variable dividend & >5% oil growth)
$WPX
- Capex run rate for the second half of the year is roughly $300mm per quarter. You also have to remember, we're trying to arrest the decline that we really created in the second quarter as a result of just curtailing activity and drop and completion crews.
- Capex run rate for the second half of the year is roughly $300mm per quarter. You also have to remember, we're trying to arrest the decline that we really created in the second quarter as a result of just curtailing activity and drop and completion crews.
$COP
- We're running 7 rigs, 4 Eagle Ford, 2 Bakken, & 1 Permian. We expect to maintain this level of rig activity for the remainder of the year
- Since May, we've had no frac spreads under contract, we expect to add 1 or 2 crews in Eagle Ford between now and the end of the year
- We're running 7 rigs, 4 Eagle Ford, 2 Bakken, & 1 Permian. We expect to maintain this level of rig activity for the remainder of the year
- Since May, we've had no frac spreads under contract, we expect to add 1 or 2 crews in Eagle Ford between now and the end of the year
$CXO
- we're going to be very cautious on increasing any kind of activity and require a much stronger and longer price signals from the market before we do
- Long-term, we just see being able to deliver more free cash flow with a lower reinvestment rate back into the business
- we're going to be very cautious on increasing any kind of activity and require a much stronger and longer price signals from the market before we do
- Long-term, we just see being able to deliver more free cash flow with a lower reinvestment rate back into the business
$CXO
- For most of my career, we would reinvest all our cash flow and then show our success by how much we could grow our production. That's how this industry worked for a long time. Well, that's not how it's going to work in the future
- For most of my career, we would reinvest all our cash flow and then show our success by how much we could grow our production. That's how this industry worked for a long time. Well, that's not how it's going to work in the future
$FANG
- We have 3 completion crews working today to stem declines & to meet our 4Q production target of 170-175kbd.
- we're not seeing any signals that growth is needed from Diamondback or from our industry in general. So, growth in today's world use is pretty much off the table
- We have 3 completion crews working today to stem declines & to meet our 4Q production target of 170-175kbd.
- we're not seeing any signals that growth is needed from Diamondback or from our industry in general. So, growth in today's world use is pretty much off the table
$HES
- We expect our 2021 capital spend to be flat to down compared to 2020 and the big moving parts is will have lower spend in the Bakken continuing with the one rig and then that will be offset by higher spend in Guyana.
- We expect our 2021 capital spend to be flat to down compared to 2020 and the big moving parts is will have lower spend in the Bakken continuing with the one rig and then that will be offset by higher spend in Guyana.
$HES
- We would want WTI to be in the range of $50 for us to consider to bring a Bakken rig back and our focus is to maximize cash flow generation for sure, and that's going to be a dynamic between price, the outlook for prices and keeping our liquidity strong
- We would want WTI to be in the range of $50 for us to consider to bring a Bakken rig back and our focus is to maximize cash flow generation for sure, and that's going to be a dynamic between price, the outlook for prices and keeping our liquidity strong
$CLR
- If we see supply and demand aligned to a more sustainable level, we have the ability to consider a managed increase in completion activity along with additional debt reduction
- If we see supply and demand aligned to a more sustainable level, we have the ability to consider a managed increase in completion activity along with additional debt reduction
$CLR
- To bring back activity, probably in that $50, $60 world so until that point in time I think the industry will be pursuing a pretty moderate growth rates
- if it spikes up to $50 unlikely we're going to change our behavior at all.
- To bring back activity, probably in that $50, $60 world so until that point in time I think the industry will be pursuing a pretty moderate growth rates
- if it spikes up to $50 unlikely we're going to change our behavior at all.
