Permian – update through May 2018

Fun link here shared by JackFutures at in the 2Q earnings annoucement comment thread  at seekingalpha.com.  The interactive chart allows one to graph by well origination date, operator, county, and many other categories.

A few observations:

• If viewed by operator, the data suggests that Chevron and Anadarko are just warming up.  My understanding is that TPL is most levered to these two operators (I could be wrong!).
• A view by county shows continued strong expansion in Midland, Loving and Reeves counties.  Culberson still looks pretty quiet while Hudspeth isn’t even on the map.
• The “month of first flow” view gives one perspective on recent growth.  It looks like production has just about doubled in in the 2017-2018 period.
  • It appears as if the wells started in 2017 and beyond account for about 75% of current production.
• Lastly, if you go to the “well quality” tab and look at the bottom chart by “month of first flow”, you can see that the newer periods are fatter (more wells) and have more vertical trajectories (cumulative production by time) than earlier periods.  One wonders what the next 8 quarters are going to look like.

My sense is that these will be important maps to watch if you are thinking about timing a sale of TPL as dangerous as that may be.