Sharp Cut To New Drilling
This week, we have gathered Q1’19 data in preparation for the upcoming earnings season. The most notable datapoint initially has been the sharp cut in new wells spud (-8% q/q), more severe than the modest decline in rig count (and contrary to the INCREASE in well completions). Midcon (HAL, RES) and DJ / Bakken (HAL, LBRT) have seen the sharpest declines in new wells drilled while the Eagle Ford, Hville, and Northeast actually improved in Q1’19. Poor rig efficiency has also been a culprit to lower well counts, led by a few painfully inefficient operators such as XOM.
For access to the full report visit: https://corasresearch.com/reports/