Get a head start on your DUG Permian Basin experience with the Pre-Conference Midstream Program. You'll hear from 15 of the region's most-active midstream operators. Expanded for 2015, this program will cover everything you need to know about the Permian Basin midstream market.
Explore what's working for leading producers in the nation's top oil province. Hear directly from executive-level speakers in 14 uniquely candid conference sessions. Plus, through the event's exhibition, you'll get a first-hand look at new technologies that can impact your bottom line today.
Analysts: Permian Economics Palatable At $60 WTI FORT WORTH, Texas—Sixty dollars is the new $90, declared Raymond James analyst Andrew Coleman to a crowd of Permian Basin players at Hart Energy’s DUG Permian conference last week. His prediction is predicated on a model that lower service costs and drilling efficiencies will reset acceptable operator cash margins closer to $60 WTI.
“Our belief is that high-grading [acreage] and cost reductions will allow the sector to recalibrate at $60 oil,” Coleman said.
Wall Street has sent a signal to operators that they cannot outspend capital, and as such the Raymond James model is “definitely more focused on cash margins than EBITDA margins,” he said. “We want to make sure that the next barrel produced will cover the entire cost in the [value] chain.”