Pioneer’s A+ game might match OPEC

PXD-PVby Matthew Johnson

Recently, we reviewed some pressure pumpers and even took a stab at Eog Resources (EOG: $91), often called the Apple ($108.27) of U.S. shale.  If Eog Resources is the Apple of U.S. Shale then is Pioneer (PXD: $224) the Uber-equivalent?  Their CEO, Scott Sheffield, stated last week that their operating costs in the Permian Basin were close to $2 per BOE. Some have disputed this by looking deeper into their financials.  Let’s take a look at what we’re good at which is frac jobs and frac spreads.

We’ve reported 440 frac jobs since the beginning of 2015 running through Q1 2016.  PXD has shown a steady flow of work.

FSC Charts for PXD - comparisonFSC Charts for PXD - month by month

Pioneer is vertically integrated, so they do a lot of their own pressure pumping. However, we are tracking some activity with Halliburton (HAL: $43.84), Baker Hughes (BHI: $49.76) and Schlumberger (SLB: $81.20) in the last 18 months.

Here’s their top ten frac jobs by county since January of 2015:

FSC Charts for PXD - top 10 countiesThe majority of their activity takes place in Midland (Permian), Upton (Permian) and Karnes (Eagle Ford) counties.

Pioneer has been a technological leader in many aspects of frac’ing including well selection, pressure pumping  and refrac’ing.  The inclusion of their own pressure pumping team gives them a logistical and financial advantage over 90% of E&Ps in the United States.  Even if their CEO is exaggerating, it appears as their operational costs have shined a light on investors (their stock is up 40% since January of this year) and other shale companies that the impossible is, in fact, possible.  If OPEC’s goal was to knock U.S. shale offline they may have won some battles, but companies like pxd are tenacious.  The war is far from over.

sources:
Arthur Berman at oilprice.comPioneers $2 Operating Costs: Fact or Fiction?
Rachel Aldrich at The StreetPioneer Natural Resources Stock is the ‘Chart of the Day‘”
Nicholas Chapman at Market RealistAnalyzing Pioneer Natural Resources Q216 Earnings

Disclaimer
The data presented above has a margin of error of 5-8% as a result of E&P and/or service company errors or incorrect data filings. Neither the information, nor any opinion contained in this site constitutes a solicitation or offer by Primary Vision or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

July ReFrac Report – Permian Basin Style

July Update

Primary Vision has been working hard to improve our ReFrac report offering.  We’ve added some additional charts for you focused on the Permian Basin, changed some charts that were hard to read, added a printable version, upgraded our delivery method from an attachment to a link, etc. etc.  A lot of changes that required a lot of testing and we’re not gonna stop there.  Look for us to add in additional analytics, chemicals and production before the end of the year.

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Refrac’ed Wells from 2011-2015 Year To Date

side note: We’re also looking to add an account based system as well as additional reports (hint: Frac Fleet report)

In addition to our reports, we’re going to soon be adding production data, additional completions data and making our trek to the great white north (yes, Canada)!  All a part of the continued evolution of our comprehensive U.S. frac data products.

Survey Forthcoming

Some time this week we’re going to release a survey on our refrac report and a bit about what’s important to you frac data-wise.  Should be super easy, ten questions or less.  Thanks in advance!

Shameless Plugging

Still thinking about ordering our Granular ReFrac Report?  Get July’s instantly and be setup for August where we’ll focus on the Barnett and maybe one additional surprise. You’ll have to subscribe to find out!

How to Subscribe:

You can order here for just $99 (or jump on our soon to change yearly pricing of $899) that is packed with 30+ pages of information including…
Number of ReFrac’ed Wells by Quarter, Region, Orientation and Trajectory
– 
Updated from June!
ReFrac’ed Wells by Year by Top 10 Operator (ALL and HZ wells separately)
– Updated from June!

ReFrac’ed Wells by Year by Service Company (ALL and HZ wells separately)
– Updated from June!

Average Proppant Mass by Proppant Type (ALL and HZ wells separately)
– Updated from June!

ReFrac’ed Wells by Year by Proppant Type (ALL and HZ wells separately)
– Updated from June!

Proppant Mass Comparison Between Original and Second Frac (ALL and HZ wells separately)
- Updated from June!
Heat maps for Re’Frac wells for each year
- Updated from June!
Additionally we drilled down into the Permian Basin in July, so additional slides focused on that region are included.

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2011-2015 Permian Basin Heat Map of refracs

Summer is half way over, get outside!

Primary Vision Team