Concho recently stated there was little acreage in the Permian to acquire at a reasonable price. This shows that operators are focusing on the area, due to very good well results and a stacked payzone. We believe consolidation will continue. The upcoming driving season may push Permian operator valuations higher, and this could also increase activity in the basin. The Delaware Basin is extremely profitable, and with the expectation of costs decreasing faster than in Midland, we believe Delaware Basin economics could match or surpass valuations on a per acre basis. The chart below provides the activity in Reeves County.
Name
Well Count
CUM Gas
CUM Oil
OXY USA WTP LP
72
7,548,237
5,708,539
COG OPERATING LLC
37
9,882,762
4,789,985
OXY USA INC.
19
1,813,180
1,625,167
THOMPSON, J. CLEO
14
4,792,593
2,331,952
PATRIOT RESOURCES, INC.
12
1,819,197
1,628,389
CENTENNIAL RESOURCE
11
2,607,557
1,009,181
ROSETTA RESOURCES OPER
8
2,237,934
795,618
PARSLEY ENERGY OPERATIONS
7
925,050
475,207
PRIMEXX OPERATING CORPORATION
7
1,407,558
682,560
BRIGHAM RESOURCES OPERATING
6
1,643,668
887,248
WILLIAMS, CLAYTON ENERGY
6
1,107,492
795,378
JAGGED PEAK ENERGY LLC
4
708,073
716,827
Apache Corporation
3
247,327
217,298
DIAMONDBACK E&P LLC
2
131,310
87,188
ARRIS OPERATING COMPANY LLC
1
493,279
82,474
ELK RIVER RESOURCES, LLC
1
246,786
218,139
MDC TEXAS OPERATOR LLC
1
843,243
193,400
SAMSON EXPLORATION, LLC
1
194,673
156,401
Total
212
38,649,919
22,400,951
