Following the Halliburton call on Monday, we’ve heard from three more management teams this week that have no visibility on the oilfield service market outlook in 2020. That said, two of these three did say some pretty interesting things about the current market climate in the Lower 48 oilpatch. Here …
Read More »Four US Land Drillers Own More Than Half The Active Rigs [Market Share Charts]
The US onshore rig market continues to consolidate not because of M&A but thanks to the dominance of horizontal drilling and rig specification escalation. In the four charts below, we share a time series of market share charts for Nabors Industries, Patterson-UTI, Helmerich & Payne and Precision Drilling. There’s a …
Read More »One Year And Five Hundred Rigs Ago, The US Onshore Market Bottomed.
We celebrate the recovery’s one-year anniversary by comparing how this recovery compares to others, revisiting our 2017 rig count forecast, and detailing rig count by region across the US. feature image photo credit: @jasplund91 There’s a lot more to this story… Login to see the full update… To read this update …
Read More »If April Showers Bring May Flowers, What Do Permits In March Bring?
About a month ago, we noticed a material spike in permitting activity for horizontal wells in the Permian Basin. Based on historical data, the March spike suggested that the Permian horizontal rig count could increase further 25%. We look at what’s happened since then, and update our permitting analysis for April data in this …
Read More »Running Out Of Frac Sand? Not If Startup Miners Can Help It…
Pressure pumping is heating up fast. After reactivating two frac spreads since mid-December, Patterson-UTI revealed yesterday that it will reactivate a third in 2Q17. After it closes on the Seventy-Seven acquisition, we estimate Patterson-UTI will be the fifth largest pressure pumper in the US. That means they get calls from …
Read More »A Deal Before Year-End: Patterson-UTI Pays Top Dollar For Seventy Seven Energy
Land drilling / pressure pumping hybrids Patterson-UTI and Seventy Seven Energy have agreed to join forces as 2016 draws to a close. Patterson-UTI will purchase Seventy Seven Energy for $1.76bn in an all-stock deal that includes the assumption and repayment of $336mm of net debt. This deal isn’t a bargain, as …
Read More »The Two Main Reasons Why A US Land Rig Fleet Renovation Has Begun
Although it may seem early to some, another fleet improvement cycle is underway for the US land rig fleet. We covered the specific upgrade programs of several leading land drillers last week in this post. It’s a relatively humble reconstruction cycle financially speaking, involving more discrete equipment upgrades than overhauls or …
Read More »8 Interesting Things We Learned In The Past 24 Hours
It’s been a busy 24 hours. Since Wednesday morning, a dozen upstream management teams have provided business outlooks via quarterly conference calls. While drinking from this information firehose, we’ve been logging the highlights. In this post, we dissect the eight most interesting things we took away for the oilfield business at …
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