Texas Workforce Waffles

September 10, 2015 Elizabeth Alford

Talisman Cuts Jobs — Texas Workforce Declines

The instability in the oil industry is reeking havoc on the Texas workforce, according to recent information by the U.S. Bureau of Labor Statistics.

Related: Texas Economic Index Down

Since March, Texas has added jobs every month but many more people have left the labor force, causing many to speculate about what is going on.

Economists blame the shift on the fact that the oil and gas industry has cut many jobs since crude prices tanked last year and discouraged baby boomers are leaving the workforce. They also say that the bad news is trickling down into all areas of the economy.

“Texas’ labor force has declined every month for the last six months — and by more than 100,000 people in June and July. That didn’t even happen back in the ’80s.”

— Wells Fargo Senior Economist, Mark Vitner

Out of more than 1,100 counties across the U.S., Texas held top spots for both job creation and job losses. In 2014, there were 3,200 jobs created in Midland County, TX and 1,100 jobs lost in Harris County. Overall, Texas had five of the top 10 spots: Midland County, Bexar County, Frio County, Ector County, and Tarrant County.

The Eagle Ford’s Frio County came in at the fifth spot and boasts an impressive growth of 1,100 new oil and gas jobs with a small population of 18,500 people.

Goodrich Finalizes Eagle Ford Deal

September 9, 2015 Elizabeth Alford

Goodrich Petroleum announced this week it has closed on a huge deal to sell off some of its Eagle Ford assets.

Goodrich is selling much of its Eagle Ford Shale acreage to Houston-based EP Energy for $118 million and included property in LaSalle and Frio Counties, Texas. The sale was a last ditch effort by Goodrich to keep the itself afloat and pay off existing debt.

The deal finalized only two weeks after the Goodrich announced that its senior vice president and CFO, Jan Schott, resigned to join an unnamed private company. Schott first joined Goodrich in 2007 and will remain through the first weeks of September.

Goodrich stock has traded below $1 since July 22 compared to nearly $30 in June 2014. The company now threatens to be receive a delisting warning from the New York Stock Exchange for trading below $1 for 30 consecutive business days and they announced last week it would suspend dividend payment for the third quarter of 2015 for several of its stocks.

Goodrich will still keep approximately 17,000 net undeveloped acres in the Eagle Ford for future development or sale and focus primarily on the Tuscaloosa Marine Shale in Louisiana and Mississippi.

Abraxas Chief Slashes Salary

September 8, 2015 Elizabeth Alford

Chesapeake Cuts Budget for 2015 — Salary Cuts for CEO

Abraxas Petroleum Corp. announced last week that president and CEO, Robert Watson, will voluntarily cut his salary by 20 percent due to stressful market conditions.

In 2014, the company reported its best year on record and compensated Robert Watson over $900,000. When Abraxas released its final 2014 earnings report in March, Watson anticipated a “tumultuous” 2015, and his predictions have been proven true. Crude prices have continued to fluctuate and hit a 6 ½ year low last month, causing producers to do all they can to stay competitive.

“As our shareholders continue to suffer from a difficult environment caused by falling commodity prices, the compensation committee and I felt the right thing to do was adjust my salary to a level more reflective of the current environment.”

— Robert Watson

In a second quarter earnings call, Abraxas reported a $6.6 million loss, marking six consecutive months of losses. The company also confirmed it would continue to hold back on new development in the Eagle Ford Shale until oil rebounded to at least $65 a barrel.

Happy Labor Day!

September 7, 2015 Elizabeth Alford

Wishing you a safe and relaxing Labor Day 2015!

“A hundred times every day I remind myself that my inner and outer life depend on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving.”

— Albert Einstein

Looking for a way to spend your down time? Head over to the Mineral Rights Forum and get in on the conversation!

Eagle Ford Rig Count Continues to Decline

September 5, 2015 Elizabeth Alford

The Eagle Ford Shale rig count fell this week to 107 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, a new report shows that the Eagle Ford’s Frio County came in at the fifth spot in new job growth and boasts an impressive 1,100 new oil and gas jobs for its small population of 18,500 people.

The U.S. rig count fell by 13 this week, ending with 864 rigs running by midday Friday. A total of 202 rigs were targeting natural gas (same as previous week) and 662 were targeting oil in the U.S. (13 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)375 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. 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 rigs in the Eagle Ford increased to 15 this week as natural gas prices traded at $2.66/mmbtu, a $.05 decrease from the previous week.

The oil rig count was at 91 as WTI oil prices rose to $46.62, an increase of $1.63. A total of 98 rigs are drilling horizontal wells, one are drilling directional wells, and eight are vertical rigs. Karnes County continues to lead development this week running 20 rigs, with DeWitt (18), following closely behind. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

Eagle Ford Shale News

XTO Energy Not Responsible for Earthquakes

Eagle Ford Remains Resilient

Eagle Ford Counties Win Battle

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.