The Permian region, which is currently the most prolific basin in the US, continues to experience strong drilling activity. According to Baker Hughes (BHI), the rig count in the region increased to 478 as of May 25 compared to 443 by the end of the first quarter, which represents an increase of 35 rigs. Moreover, the Permian region currently has the most DUCs (drilled but uncompleted wells).
SCOOP and STACK plays
Drilling activity in the Anadarko region, which includes the SCOOP and STACK plays, has continued to gain momentum in recent months after a slump during the start of this year. The number of rigs in the region was 126 by the end of last month compared to 118 by the end of last year. Moreover, the rig count in the region is significantly higher than levels during the same period last year. ONEOK (OKE), Targa Resources, and DCP Midstream have a strong presence in the region.
Drilling activity in DJ-Niobrara Basin has remained flat for most of 2018. The rig count in the region was 25 as of May 25 compared to 26 at the end of last year. The small drop could be a slight concern for Western Gas Partners and DCP Midstream, which have a significant presence in the region.
Eagle Ford region
Drilling activity in the Eagle Ford region has picked up in recent weeks. Total rig count in the region has increased to 78 as of May 25 compared to 70 by the end of last year. Moreover, the region has the second highest DUCs. Targa Resources and DCP Midstream have a significant presence in the region.
In the next article, we’ll look into the capital spending plans for the four peers.