Permian production forecast to keep rising despite investor concerns By Seeking Alpha

‘;

Stock MarketsAug 11, 2017 07:57PM ET
© Reuters. Permian production forecast to keep rising despite investor concerns

  • Permian Basin shale production should rise by as much as 300K bbl/day by year-end, according to the Wood Mackenzie consultancy, with oil production from the largest U.S. oil field next year approaching or surpassing the 2.7M bbl/day mark.
  • The strong outlook comes as investors sold off shares in a range of Permian producers after Pioneer Natural Resources (NYSE:) earlier this month reported a surprise increase in gas production at its Permian wells, even as its oil output remains on the track with the expectations of its engineers; Parsley Energy (NYSE:) also reported additional gas output alongside oil volumes it said were in-line with forecasts.
  • Noting that wells tend to produce more as they age, Morgan Stanley (NYSE:) analysts say the phenomenon has been hard to see in the Permian as companies have been growing at a breakneck pace, drilling new wells that are flush with oil.
  • “We think it’s execution risk that’s the culprit” behind investor concerns, says RBC analyst Scott Hanold. “The Permian is going to have some growing pains.”
  • Other top Permian producers include , , , , , , , , , , , , , , , , , , ,
  • Now read: Apache Corp .: A Buying Opportunity

Original article

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Quantcast

Source link

Shares
|ShareTweet

Leave a Reply

Your email address will not be published. Required fields are marked *

*