What’s Your Breakeven Price?

While the average breakeven price is often cited for understanding which plays are most profitable, the range of breakeven prices within a play is less often reported.  Richard and John discuss how the range of breakeven prices from high to low is useful for understanding how much activity might rise or fall as price expectations move up or down.  

Where is Activity Headed?

As the dialogue between investors and operators has moved from “growth” to “capital discipline” to “free cash flow”, the term “maintenance capex” has begun to appear.  Richard and John discuss what a maintenance capex strategy would mean for drilling and completion activity at a time when initial productivity (IP) seems poised to decline.

The EU and the US Oilpatch

As a group, ROE for publicly-traded US operators rose to a five-year high in Q4 2018, as production increased and cost per barrel held steady. But the overall results were skewed by the good performance of the largest operators, as smaller firms remain under pressure to cut spending.  Richard and John discuss how the financial health of US operators resembles the problems faced by the EU in stimulating its economy.

Where Are Oil Prices Headed? Plus, Anadarko Part 2

Both the broader macro-economic situation (global oil demand growth, US shale output, Iranian sanctions, etc.) and spot oil prices are beginning to resemble conditions as of the mid-2018.  Will oil prices repeat the Q4 2018 price drop? Richard and John discuss factors they believe will be key for oil prices going forward. Also, as oilfield M&A heats up, Richard and John contrast and compare the oil service supply chains of Oxy and Anadarko.