Seeking Alpha

Permian Basin beats anew as heart of Texas oil production

  • A new EIA report underscores the remarkable comeback of the Permian Basin, which boomed in an earlier era, faded and now leads the U.S. in oil production.
  • Daily crude oil production in the Permian, which lies under much of west Texas and part of eastern New Mexico, has increased from a low of 850K barrels in 2007 to 1.35M barrels last year.
  • The increased production is concentrated in six low-permeability formations: the Spraberry, Wolfcamp, Bone Spring, Glorieta, Yeso, and Delaware.
  • Among the top Permian producers: OXY, PXD, APA, KMP, XOM, COG, CVX, EOG, EGN, XEC, FANG.
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Comments (11)
  • P. Dennis
    , contributor
    Comments (391) | Send Message
     
    You forgot to mention LGCY.
    9 Jul 2014, 07:44 PM Reply Like
  • krauserbot
    , contributor
    Comments (18) | Send Message
     
    At ~20,000/boe a day being the production for all of their areas combined, LGCY is a bit of a small player compared to the others. Even KMP has over 50,000/day in the Permian.
    9 Jul 2014, 11:01 PM Reply Like
  • J 457
    , contributor
    Comments (952) | Send Message
     
    I'm going to give you all an early xmas present. KWK, currently at $2.42, has about 105,000 acres in Wolfcamp and Bone Springs. As well as a 14 TCFE resource in British Columbia Horn River Basin. If it weren't for the 1.7 billion debt they would be a $15-$20 share. However, their Permian assets are booked at near nothing, and their Horn River assets are booked at only 1.5 BCFE.
    9 Jul 2014, 08:57 PM Reply Like
  • Michael Phillips
    , contributor
    Comments (745) | Send Message
     
    15:1 debt to CF. That's not a gift, that's a drugstore handicap that could go sideways in a hurry.
    10 Jul 2014, 01:08 PM Reply Like
  • sailpgd
    , contributor
    Comments (105) | Send Message
     
    I am sure glad I did not take you up on your offer. What a disastrous quarter from KWK.
    11 Aug 2014, 05:00 PM Reply Like
  • sidgar
    , contributor
    Comments (3) | Send Message
     
    What about AREX?
    Sid gar
    9 Jul 2014, 09:14 PM Reply Like
  • sidgar
    , contributor
    Comments (3) | Send Message
     
    How about AREX?
    9 Jul 2014, 09:15 PM Reply Like
  • AggieInvestor
    , contributor
    Comments (74) | Send Message
     
    RSPP may be the next FANG.
    PE (Parsley Energy) has potential as well.
    Both players in the Permian.
    9 Jul 2014, 09:26 PM Reply Like
  • sailpgd
    , contributor
    Comments (105) | Send Message
     
    Add Caza Oil and Gas to the list (OTCPK:CAZFF)
    10 Jul 2014, 12:00 AM Reply Like
  • Jay Bones
    , contributor
    Comments (3) | Send Message
     
    Yes I do believe that KWK will earn tremendously, especially via their holdings in the Horn River Basin. Out of the group of 11 companies operating there, KWK is about the only junior US player.
    10 Jul 2014, 08:25 AM Reply Like
  • chasman1343
    , contributor
    Comments (4) | Send Message
     
    what about PBT??
    10 Jul 2014, 05:25 PM Reply Like
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