Key Themes Heading Into 4Q20 Earnings Season, Outlooks for 2021
Despite higher oil prices, early indications from operators suggest that E&P capital expenditures will look similar to 2020. Figure 1 demonstrates the wide array of capex adjustments from 2020, yet collectively flat year over year. With free cash flow the focus of many investors, we may see more commodity price-dependent plans this year as some […]
Colorado Political Headwinds
While discussion of political and environmental headwinds for the oil and gas industry is not new, the conversation grows louder with mounting scrutiny under a new U.S. political regime and an investor community that demands corporate and environmental responsibility. The implementation of a new state-level bill in Colorado challenges operators to remain competitive while adhering […]
Canadian Stage-by-Stage Completion Data – Plugging Along
What would you do if you had stage-by-stage data for an entire basin? At Enverus we use the data from over 5,000 Canadian unconventional wells, including data from over 175,000 stages, to complete detailed multivariate analysis that identifies the most influential completions variables to optimize production results. Interestingly, there was a clear bifurcation of results when […]
Associated Natural Gas in the Permian – Friend or Frenemy?
For years associated natural gas from oil production in the Permian Basin has been viewed as a byproduct with little monetary value. Infrastructure constraints and challenged pricing caused many operators to flare produced gas rather than capture and sell it. With significant egress capacity additions out of the Permian and gas prices expected to stay […]
A Modest Proposal for Small Operators
COVID-19 Focused Investments: Publicly Traded Companies Investor demands for showing free cash flow and capital discipline have been met with oil and gas public equities tamping down their capex spend, hunkering down to wait for WTI to appreciate enough to start completing DUCs and bringing their supplies to market, and consolidating in mergers or […]
International Upstream Returns Still Competitive
Long-lead international upstream projects still offer returns that remain competitive with North American oil plays and the fast-growing renewable energy sector despite growing economic, investor and regulatory headwinds. As a result, long-term production declines from the international project slate will continue to be offset by world-class projects such as the Guyana/Suriname developments that offer strong […]
Algo Versus Reality
Updating hundreds of thousands of type curves with new production data is no small feat. At Enverus, we use a proprietary type curve algorithm to draw and update type curves automatically in Enverus CORE based on our cleaned production data, leaving our analysts time to work on high-value analysis. We conducted a study to determine […]
A Geologist’s Backpack
All geologists working in the field start their day by throwing a few essential items into their backpacks: A hand lens, a hammer and a pad of paper to record the day’s findings. For geologists working from the office, we typically line our “backpacks” with other essential supplies. Geologists powered by Enverus start their day […]
Market Update – Election and Vaccines
The consensus among market participants leading up to the U.S. election linked a Joe Biden win to a bearish outcome for global oil prices and the oil industry. Despite this fear, a rally in global oil prices drove the XOP, an ETF which tracks a basket of U.S. exploration and production equities, to outperform the […]
Lock It Down
With the recent surge in COVID-19 infections across much of the developed world, policymakers have started to re-introduce lockdown measures to control the spread. These efforts often restrict the movement of people in public spaces, reducing close contact to one another. France is currently under a national lockdown where people are only permitted to go […]