Title : Update On Encana -- Eagle Ford, Permian -- Filloon -- July 9, 2018
link : Update On Encana -- Eagle Ford, Permian -- Filloon -- July 9, 2018
Update On Encana -- Eagle Ford, Permian -- Filloon -- July 9, 2018
Disclaimer: this is not an investment site. This is being posted to compare other shale plays with the Bakken and to better understand the Bakken and put it in perspective to other plays.Over at SeekingAlpha:
- wide Midland differentials will continue to create issues for operators
- ECA is protected in 2018 and 90% of Midland barrels will be unaffected in 2019
- ECA has the ability to increase production in the Eagle Ford, as those horizontals are outperforming Midland
- Permian differentials continue to widen. This will be difficult for operators as realized prices continue lower. We saw take away issues in the Bakken before the DAPL, and some analysts believe it will continue through the end of 2019. ECA is uniquely positioned due to 90% of its Midland barrels being protected from logistical issues. If ECA needs to increase production, it is able to do so in the Eagle Ford where differentials are tight.
Investing in unconventional oil producers is difficult. Volatility can be extreme, as there are many moving parts to consider. The Eagle Ford, Bakken, Permian, STACK/SCOOP, and Niobrara all have good and bad points.
The Permian was thought of as the best play going into 2018, but now we are seeing worries related to widening differentials.
This has occurred in the past with respect to other plays, like the Bakken. Well costs in the Permian are also rising, and this is another variable to watch. When looking at operators through 2018 and 2019, logistics must be considered. Options in other plays are also important. The industry has recorded some recent massive well results in the Eagle Ford. This could provide an increase in EV/EBITDA for operators in and around Karnes County.More:
In 2017, ECA completed 37 horizontals in Karnes County. Some of these locations were huge. One location produced 409 MBO in 10 months.
The average of those 37 wells was reduced significantly by the handful of poor producers. Ten locations produced more than 200 KBO in the first 10 months of well life.
Thus Article Update On Encana -- Eagle Ford, Permian -- Filloon -- July 9, 2018
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