Senior Manager, Permian at Oilfield Water Logistics LLC
- Overview of water logistics within the Permian, highlighting notable themes
- Competitive landscape and key players' positioning
- Consolidation in the sector and impacts on the industry
- Outlook for 2019 and beyond, including possible headwinds
What’s your updated perspective on the water infrastructure dynamics within the Permian? What is particularly interesting or noteworthy as of late?
What do you expect for future development and cost trends when thinking about the very high multiples and the ability to hit any forward-looking targets? How does it tie in with demand, how is that shaping up?
Who do you think are the main players and who is leading the space? You mentioned the new models encompassing all three pipes – walk us through that landscape and how you view it.
In terms of the fragmentation and the mom-and-pop shops – are there many popping up?
On the subject of consolidation, you talked about the 18-20 times EBITDA multiple. Is that what you’re seeing when these mom-and-pops are transacting?
You spoke about how the companies are all going to differentiate themselves. What is currently happening and what do you expect moving forward?
If we’re thinking about the strategies – disposal, which acres are targeted – do you think any model is more sustainable or better than before?
There are studies and articles saying 90% of the flowback can be recycled, are you aware if that is impacting the demand or overall volumes or anything along those lines?
There’s been some tightness in some areas, paired with slightly tighter CAPEX by E&P companies. If thinking about the sort of leverage the water logistics companies have over the E&P companies, how has that relationship changed? Maybe looking at how pricing dynamics or contract flexibility have evolved?
Are you aware of much material change in the pricing of contracts? How do you expect that to move forward as CAPEX gets tighter? You said you expect that bottleneck within the next year or so?
It seems as if there’s not much barrier to move from one provider to the other. What are your thoughts on customer churn or stickiness?
You mentioned how there are places in New Mexico where you’re not allowed to drill shallow-well disposal wells, describing the competitive landscape as a little more open. What are the dynamics at play there and do you think the high disposal costs might essentially shut any wells? How should we think about that from the E&P perspective and the water disposal side?
How do you expect cost to impact the well life for the E&P players that are currently active in New Mexico?
Are there any other regulatory pieces that you think are really important to understand or maybe coming a bit more to the forefront of how this issue will more or less develop?
What about the treatment of the water, what level is allowed to be disposed of through disposal wells vs needing further treatment? What might make that a little bit more stringent?
Looking at the pipelines, what can you tell us about timings to lay down piping, the type of materials used and if that has evolved and allowed timelines to be hit quicker?
Has there been any shift towards what the cost per mile looks like? We’ve heard a lot about the tightness in labour and labour markets around Texas and permitting costs. How should we think about that trend and how it might develop?
You mentioned rig movement from south to north. Are there any other dynamics to be aware of in terms of how some water logistic companies are getting ahead of that shift, or how to mitigate that exposure?
Is there a pricing difference between servicing in the southern Delaware vs northern Delaware?
It seems that Pioneer is piloting the use of sewage and there’s the recycled water piece. As we think about companies moving away from the traditional methods, how do you imagine that moving forward? Is there anything else being piloted, are there any models you’re curious about?
Is there anything which you feel is really important to better understand about Permian water logistics?
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