5 Permian Companies With Alleged $26/Barrel Break-Even Prices

[dowmike + 37]

Interesting research from GlobalData Energy (via Forbes) recently out: According to the data from 26 operators in the Permian Basin, the break-even oil prices for wells with lateral lengths of 4,500-10,500 ft is from $21 to $48 per barrel. And the companies allegedly best-positioned here for under $26/ per barrel break-even include: EOG Resources, XTO Energy (Exxon unit), Pioneer, Concho and Chevron. Thoughts? I'm always wary of these data sets ...

 

[Rodent + 1,424]

22 minutes ago, dowmike said:

Interesting research from GlobalData Energy (via Forbes) recently out: According to the data from 26 operators in the Permian Basin, the break-even oil prices for wells with lateral lengths of 4,500-10,500 ft is from $21 to $48 per barrel. And the companies allegedly best-positioned here for under $26/ per barrel break-even include: EOG Resources, XTO Energy (Exxon unit), Pioneer, Concho and Chevron. Thoughts? I'm always wary of these data sets ...

 

yeah, breakeven formulas vary. hard to really tell what the true costs are. 

[BillKidd + 139]

Lying about the stats is fraud. Hopefully, they give factual numbers. But what Art Berman likes to point out is that they don't do is count their sunk costs, all of the costs of keeping the doors open OTHER THAN their D&C costs.

One thing I will say about XTO is that you NEVER see a public presentation. All the other companies like to toot their horn about how great their acreage and wells are and how rosy everything is. XTO (ExxonMobil) doesn't give a rip. I guess it's because they have so much money, they don't have to impress anybody. I think they are a skilled operator, adept at maximizing production. EOG is good. I have never been impressed with Chevron's production skills onshore.