Summary
The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. At its peak in March 2020, the Permian had 405 drilling rigs. Currently, there are just 125 drilling rigs in the area as of September 2020. The play also witnessed a drastic drop in its output from 4.85 million barrels per day (mmbd) in March 2020 to 3.89 mmbd in May 2020.
With the contraction in demand for both crude oil and oil product persisting for a prolonged period of time due to COVID-19, there has been a look out for potential acquisitions with the goal of consolidating operations to lower costs. Chevron’s US$13 billion acquisition of Noble Energy, including debt is one of the largest transactions in 2020. Although several synergies are created through this transaction, Chevron was also attracted by Noble’s Permian acreage of 92,000 acres that are in close proximity to Chevron’s acreage especially since its plan to acquire Anadarko fell through last year. Another relevant deal in the Permian is the recent US$2.6 billion all-stock merger involving Devon Energy and WPX Energy. Both the companies have majority of their portfolio coming from Permian basin and have overlapping acreage. This merger is beneficial for both companies as they could combine operational expertise in Permian operations, even though it might result in a reduction in their workforce.
Scope
The report analyzes the crude oil and natural gas appraisal and production activities in the Permian Basin in the US. The scope of the report includes -
Reasons to Buy
The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. At its peak in March 2020, the Permian had 405 drilling rigs. Currently, there are just 125 drilling rigs in the area as of September 2020. The play also witnessed a drastic drop in its output from 4.85 million barrels per day (mmbd) in March 2020 to 3.89 mmbd in May 2020.
With the contraction in demand for both crude oil and oil product persisting for a prolonged period of time due to COVID-19, there has been a look out for potential acquisitions with the goal of consolidating operations to lower costs. Chevron’s US$13 billion acquisition of Noble Energy, including debt is one of the largest transactions in 2020. Although several synergies are created through this transaction, Chevron was also attracted by Noble’s Permian acreage of 92,000 acres that are in close proximity to Chevron’s acreage especially since its plan to acquire Anadarko fell through last year. Another relevant deal in the Permian is the recent US$2.6 billion all-stock merger involving Devon Energy and WPX Energy. Both the companies have majority of their portfolio coming from Permian basin and have overlapping acreage. This merger is beneficial for both companies as they could combine operational expertise in Permian operations, even though it might result in a reduction in their workforce.
Scope
The report analyzes the crude oil and natural gas appraisal and production activities in the Permian Basin in the US. The scope of the report includes -
- Comprehensive analysis of crude oil and natural gas production across major counties in Texas and New Mexico during 2017-2019, as well as production outlook from 2020-2022
- Detailed information of impact on monthly production from the play amid COVID-19 pandemic
- In-depth information of well permits issued in the Permian Basin across Texas and New Mexico, by county and by company from January 2019 to August 2020
- In-depth analysis of net acreage, reserves, production in 2020, cost trends and planned investments of major companies in the Permian Basin
- Detailed information of financial standings of major companies
- In-depth analysis on various completion parameters
- Comparison of planned capital expenditure by major companies
- Detailed analysis of economic metrics of major players in the Permian Basin
- In-depth analysis of financial and economic metrics of bankrupt companies in the Permian Basin
- Up-to-date information on major mergers and acquisitions in the Permian Basin between 2018 and 2020
- Overview of existing and active pipeline infrastructure in and around the Permian Basin, along with a review of the upcoming projects in the region
Reasons to Buy
- Develop business strategies with the help of specific insights into the Permian Basin
- Plan your strategies based on expected developments of the Permian Basin
- Understand the competitive landscape of the companies in the Permian Basin
- Keep yourself informed of the latest M&A activity in this prolific Basin
- Identify opportunities and challenges in the Permian Basin in the US
Table of Contents
1. Overview
2. Permian Basin, Introduction
3. Permian Basin, Production and Activity Overview
4. Permian Basin, Competitive Benchmarking
5. Permian Basin, Analysis of Bankrupt Companies
6. Permian Basin, Associated Infrastructure
7. Mergers and Acquisition Activity in the Permian Basin, 2018-2020
9. Appendix
List of Tables
List of Figures
