Production & Capex Efficiency Gains Leading 1Q24 Earnings Results

E&P | United States | 1Q24 Results

1Q24 Earnings Summary

• Twenty-one (21) E&Ps (of 29 E&Ps covered) have released their 1Q24 quarterly results.

• Modest production declines as FY24 guidance begins to narrow guidance parameters. FY24 modeled production has been reduced -1%.

• FY24 Capex has been reduced a collective $575MM, or -1%, among the 21 E&Ps due to drilling efficiencies and a modest reduction in forecasted TILs. FY24 modeled US onshore Capex totals $71.8B, down from $72.4B.

• Recurring takeaway theme has been “doing more with less”; steady production is being realized through drilling productivity, coupled with D&C efficiency gains that collectively lead to less D&C spend.

• Capital efficiencies in the Permian are noted by an increase in 3-mile laterals and an overall increase in average lateral lengths among Permian Producers (FANG, MRO, SM, DVN, SM)

• Capital spend reductions noted in the Marcellus/Utica due to weak, near-term natural gas prices (CHK/SWN, CTRA, EQT, AR, CNX, RRC).

Upcoming 1Q24 Earnings Links

Eight (8) E&Ps have earnings releases this week.

• CRGY, 5/7/24 (webcast link)

• CHRD, 5/8/24 (webcast link)

• OXY, 5/8/24 (webcast link)

• OVV, 5/8/24 (webcast link)

• PR, 5/8/24 (Call-in Details: 1-800-225-9448; Conference ID: PRCQ124)

• MGY, 5/8/24 (webcast link)

• HPK, 5/9/24 (webcast link)

• BTE 5/10/24 (webcast link)

Companies Mentioned

• Exxon Mobil Corporation (XOM)

• Pioneer Natural Resources Company (PXD)

• Chevron Corporation (CVX)

• Chesapeake Energy Corporation (CHK)

• Southwestern Energy Company (SWN)

• ConocoPhillips (COP)

• EOG Resources, Inc. (EOG)

• EQT Corporation (EQT)

• Occidental Petroleum Corporation (OXY)

• Coterra Energy Inc. (CTRA)

• Devon Energy Corporation (DVN)

• Antero Resources Corporation (AR)

• Ovintiv Inc. (OVV)

• Diamondback Energy, Inc. (FANG)

• Endeavor Energy Resources, LP (Private)

• Marathon Oil Corporation (MRO)

• APA Corporation (APA)

• Range Resources Corporation (RRC)

• Comstock Resources, Inc. (CRK)

• Permian Resources Corporation (PR)

• Matador Resources Company (MTDR)

• Civitas Resources Inc. (CIVI)

• CNX Resources Corporation (CNX)

• Murphy Oil Corporation (MUR)

• Chord Energy Corporation (CHRD)

• Magnolia Oil & Gas Corporation (MGY)

• SM Energy Company (SM)

• Crescent Energy Company (CRGY)

• High Peak Energy Inc. (HPK)

_{Disclaimer: All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Patrick Enwright accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and Patrick Enwright makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained.}