Specialist
Former Reservoir Engineer & Production Engineer at Kinder Morgan Inc
Agenda
- Key trends in the Permian Basin including acreage, competition and Callon's (NYSE: CPE) positioning
- Well economics and break-evens, as well as estimated ultimate recovery for different segments of the Basin
- Potential reduction in well cost
- Outlook for 2019 and beyond
Questions
1.
What is your perspective on Callon, and what are the major key themes and trends that you’re finding particularly interesting or noteworthy as of late?
2.
Could you walk through the remaining assets after that Ranger deal, and how you would evaluate the viability and efficiencies of those positions?
3.
You mentioned how Spur is the most important acreage. Callon talked about a decline in its operational capital spending and being able to do this through the efficiency gains, especially in the Delaware Basin. Could the decline in operational capital spending impact the proper development of this acreage, or how you would interpret that? What would you keep an eye out for?
4.
What do you think the typical spacing would look like, or what is more realistic to properly develop that Spur asset?
5.
Callon mentioned greater use of local sand and better water management. In your opinion, is that like cutting a corner and could that impact well performance down the line? Does using that local sand still provide uncertainty for how that could potentially impact the EUR [estimated ultimate recovery]?
6.
What are the typical characteristics in the Ward County area and that Spur asset, in terms of GOR [gas oil ratio]? What would you expect given that acreage profile?
7.
Is there any success around tertiary recovery measures, like CO2 or similar? How would you manage this potential issue, or what would you like to see?
8.
Could you walk through what you believe would be over-drilled and over-fracked in terms of spacing?
9.
Are there any other specific challenges that you see within the Midland Basin, especially within the WildHorse and the Monarch positions?
10.
When you talk about being continuous, and considering the operation in Spur, Monarch and WildHorse, do you see a lot of opportunity for collaboration?
11.
Could you see Monarch or WildHorse being marketable, given the characteristics you’ve mentioned?
12.
Is there anything we haven’t covered that you feel is important for us to discuss and walk away from?
13.
Based on other operators in the Spur, Monarch and WildHorse area, are there a lot of the same trends around CAPEX?
14.
You mentioned that you were surprised that Monarch and WildHorse were able to find a buyer for that Ranger asset. Do you have any thoughts on how that was possible, or what you’d expect in terms of valuation for those two pieces, if they were to divest?
15.
Do you have any final comments?
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