Delaware IRRs

Platts:Higher prices lead to better returns, but producers still cautious

The Delaware continues to lead all US shale plays as a stronger Waha price has boosted most of the region’s robust wellhead gas revenue, pushing this region’s IRRs into the 25% area. With IRRs of 20% to 30%, operators will likely start to increase their completion activity quickly in the near term, according to Platts Analytics. Hydraulic fracturing of the approximately 200 drilled-but-uncompleted wells will help Texas and New Mexico operators stabilize the region’s production after the reduction in activity experienced in 2020.

6 thoughts on “Delaware IRRs

    • I appreciate you sharing this here. I’ve decided to keep my personal thoughts on valuation off the blog as I don’t want it to be perceived as overly promotional. I try to share resources and relevant information that I see in an objective way. Since I have that base covered, I welcome the opinions of others on valuation. Perhaps I’ll set up a post where it can be explicitly discussed in the comments section.

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