Eagle Ford Rig Count Continues Decline

March 2, 2015 Elizabeth Alford

The Eagle Ford Shale rig count decreased by four to 188 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, Devon Energy announced it finished an outstanding year as it rebounded from a $20 million net loss in 2013 to end 2014 with net earnings of $1.6 billion. The company's Q4 total production rose 20% to 239,000 barrels per day, which represents a 48% increase from 2013.

The U.S. rig count fell another 43 to 1267 rigs running by the end of last week. A total of 280 rigs were targeting natural gas (down nine from the previous week) and 986 were targeting oil in the U.S. (33 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc).570 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties (181 rigs). The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas increased to 24 rigs running by the end of yesterday. Natural gas prices decreased by $.22 from the previous week at $2.72/mmbtu on Friday afternoon.

The oil rig count decreased by four to 188 rigs running by the end of last week. WTI oil prices decreased by $1.66 from the previous week, trading at $48.84/bbl on Friday afternoon. A total of 173 rigs are drilling horizontal wells, three rigs are drilling directional wells, and vertical rigs remained at 12 total. Karnes (28), Dimmit (22), and DeWitt (22) have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

EOG Reduces Eagle Ford Wells for 2015

Rosetta Resources Sets Two Year Plan

Bradleys, Inc. Earns Prestigious TECO-Westinghouse Blue Diamond Award

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Bradleys, Inc. Earns Prestigious TECO-Westinghouse Blue Diamond Award

March 1, 2015 Elizabeth Alford

Bradleys, Inc., a nationally-recognized leader in the electric motor repair industry, is pleased to have been recognized as a TECO-Westinghouse Blue Diamond Tier I Supplier for 2013. Bradleys has provided large electric motor repair, rewinding, horizontal and vertical motor load testing, CNC machining, field services, new motor sales, and climate-controlled motor storage to petrochemical, refining, manufacturing and mining industries for over 85 years. The company’s 110,000 square foot facility rests in the heart of South Texas, just sixty miles from the prolific Eagle Ford Shale oil fields, and employs over 100 motor repair and testing professionals.

The prestigious Blue Diamond Tier I Award is awarded to less than 1% of all TECO-Westinghouse suppliers worldwide. The award scoring process requires outstanding excellence in the following areas: Quality, Cost, Delivery and Service.

“A supplier has to rank at 95% or above in all four categories to be recognized as a Tier I supplier, said a TECO-Westinghouse’s Supply Chain spokesperson, “and it takes a solid 98% to reach a level of excellence worthy of a Blue Diamond Award.” “Time and time again, Bradleys has continued to prove itself a reliable and dependable organization, meeting our delivery schedules, and providing high quality service, while maintaining competitive pricing. These are only a few reasons Bradleys, Inc. was selected to receive the Blue Diamond Award. The Blue Diamond Award is only given to those suppliers that are the best of the best,” he said.

In addition to the Blue Diamond Award, TECO-Westinghouse also awarded Bradleys the “Outstanding Delivery” Award and the “Outstanding Quality” Award for 2013. Bradleys’ performance in these areas ranked at 100%.

“Bradleys is honored to have received the Blue Diamond award,” said Jim Williams, Jr., CEO of Bradleys. “The recognition of our team’s customer-driven focus and performance is much appreciated.”

For more information, visit www.bradleysmotors.com, or call Darlene Gregory at 361-904-0044 or email [email protected].

Marathon Oil Reduces Budget Again

February 26, 2015 Elizabeth Alford

Marathon Oil reported last week it is reducing 2015 capital spending another 20 percent from their initial December forecast.

These cuts bring the projected capex to $3.5 billion, which is less than half of 2013 spending and includes exploration spending of $232 million.

Marathon Oil will continue to focus on activity in the Eagle Ford and plans to spend 41% of its 2015 in the Texas region. Of the $1.4 billion earmarked for the Eagle Ford, approximately $1.0 billion is dedicated to drilling and completions. The company will drill 141-152 net wells and bring 176-192 total wells to sale in the new year.

“We’re also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant. Our objective is clear—to deliver long-term shareholder value, regardless of the commodity price cycle, by focusing on those elements of our business which we control.”

— CEO, Lee Tillman

Marathon Oil in the Eagle Ford

Marathon Oil has increased its acquisitions in the Eagle Ford over the last several years and now holds approximately 211,000 net acres in the Eagle Ford. has invested strategically to grow its presence in the formation’s highest value oil and condensate core areas. Activity is focused on Atascosa, DeWitt, Gonzales and Karnes counties.

Rosetta Resources Sets Two Year Plan

February 25, 2015 Elizabeth Alford

Rosetta Resources announced its fourth quarter operational update and released a two year strategic outlook that includes major spending cuts.

In a press release on Tuesday, Rosetta Resources reported a Q4 net income of $185.5 million, which was up from $29.5 million for the same period last year. For the year, the company reported income of $313.6 million, or $5.09 per diluted share, versus net income of $199.4 million in 2013. Production for the quarter increased 41 percent from 2013 and averaged 73 MBoe/d.

Eagle Ford

Rosetta credits annual production records to the ongoing development of their Eagle Ford assets. The company’s capital budget for 2014 included included $666 million for drilling and completion in the Eagle Ford shale, where 94 wells were drilled and 95 wells were completed. Daily production from the Eagle Ford increased 36 percent over last year averaging 65 MBoe/d in the fourth quarter.

Two Year Forecast

As Rosetta Resources looks to the future, their spending plan includes holding core acreage positions and conserving as the industry waits for a commodity price recovery. Capital spending will be up to $350 million per year, with a major goal to be to operate within cash flow for 2015 and 2016. The company's production goals for this time period will be for about 60 thousand barrels of oil equivalent per day.

“Rosetta has taken important steps the past several months to position the Company on solid footing so that our shareholders will benefit the most from a commodity price recovery.” Craddock added “We’ve chosen to defer production growth and focused instead on living within our means, maintaining our core acreage positions, and defending a target production level of about 60,000 Boe per day.”

— Jim Craddock, Rosetta's Chairman, CEO and President

Read the full report at rosettaresources.com

EOG Reduces Eagle Ford Wells for 2015

February 24, 2015 Elizabeth Alford

EOG Resources, the largest operator in the Eagle Ford, announced its fourth quarterly earnings and revised capex for 2015. The spending plan includes a capital budget that focuses on the Eagle Ford, Bakken and Delaware Basin.

Despite falling crude prices throughout the fall months, EOG managed to finish with strong Q4 numbers. The company reported a quarterly net income at $445 million with an overall 2014 income of $2,915 million, compared to $2,197 million for 2013.

Production in the Eagle Ford was strong across several counties:

Karnes County: four wells that produced over 19,000 Bopd, 1,700 Bpd of NGLs and 10 MMcfd of natural gas, collectively

La Salle County: two wells with production rates of 2,460 and 2,850 Bopd, plus 165 and 190 Bpd of NGLs and 975 thousand cubic feet per day (Mcfd) and 1.1 MMcfd of natural gas

McMullen County: One new well brought online at an initial production rate of 2,535 Bopd, with 180 Bpd of NGLs and 1.1 MMcfd of natural gas

For 2015, EOG plans capital expenditures to range from $4.9 to $5.1 billion including projects for production facilities and midstream expenditures. This represents a 40 percent reduction compared to 2014 spending as the company takes a cautious approach due to continued low crude prices.

“In 2015, EOG will execute a balanced drilling program across the length of its Eagle Ford acreage. Due to advancements achieved in the western acreage during the last two years, returns are competitive with the east and a balanced drilling program will maximize operational efficiencies. EOG plans to complete about 345 net wells in the Eagle Ford compared to 534 in 2014.”