[Acquisition Analysis] Chesapeake and Southwestern deal

Dear Subscriber,

This week, we're excited to share our insights on the $7.4 billion (USD) Chesapeake and Southwestern deal merger.

Explore Part 2 of our blog series, "The Hidden Stories Behind Well Names" featuring wells inspired by rock and punk music. Plus, grab our PDF highlighting 5 common well design mistakes.

Building on our previous newsletter's theme, we've got two must-read posts by our VP of Product Management, Ted Cross : "Better Data, Better Decisions: The Impact of Proprietary Well-Level Data" and "Oil Prices and Rig Counts: The COVID Break and Future Trends"

And we share with you a clip where Ted Cross talk about the metrics Novi uses to define rock quality.

[Acquisition Analysis] Chesapeake and Southwestern deal

We just dropped our report on the Chesapeake and Southwestern merger.

Following the announcement, both companies enjoyed a 5% market uptick. Notably, Chesapeake has now become the largest independent U.S. gas producer, boasting an impressive 11.3 bcfe/d capacity.

Our comprehensive report delves beyond public numbers, shedding light on a significant development – doubled productivity in Marcellus and Haynesville. This positions Chesapeake as a leader in both fields, strategically positioning the company for a pivotal role in the global LNG trade.

Better Data, Better Decisions: The Impact of Proprietary Well-Level Data

One of the biggest challenges working in the Permian is dealing with public production data that's allocated from the lease to the well-level. But what if you could work with proprietary, well-level data?

Operators and investors stake millions of dollars based on public production data of questionable quality. Here at Novi we invest tons of time improving our allocation algorithm. But even better is just working with proprietary well-level data in the first place!

We have made agreements with operators and minerals companies to share their proprietary production through our data service. Everyone benefits: with better data comes better decisions.

Now, our dataset includes proprietary, well-level data for 40% of the Midland Basin and 30% of the total Texas Permian. Our customers have seen the results: better competitor surveillance, improved type curves, more confident A&D evaluations. And it's definitely made our models more accurate!

The industry as a whole is moving more towards openness, transparency, and cooperation. We are happy to play a part in that!

[Blog] The Hidden Stories of Well Names - Part 2

Rocking in the Permian!

Part 2 of "The Hidden Stories of Well Names" blog post series is here, and it's all about the rock and punk vibes in the Permian Basin.

Discover the wild inspirations behind well names!

Oil Prices and Rig Counts: The COVID Break and Future Trends

How do Lower 48 operators change drilling levels in response to oil prices? Well, it depends...

Looking at WTI oil prices (green line) and oil rig counts (orange line) since 2015, you can see a relatively tight coupling -- at least once you take into account the lag between price signal and rig counts. Here, I'm presenting these charts with a nine-week price lag, which gave the best fit over this period.

Showing the correlation between lagged price and rig counts shows the clear "break" that occurred after COVID. On the right, I'm charting rig counts vs. prices, and coloring the markers by the date. You can see the blues and yellows pre-COVID have a very different trend than the oranges and reds post-COVID.

What does this mean going forward? Nine weeks ago, oil was hovering right around $70/bbl. Today we are scratching the upper 80s, which could mean 100 more rigs (!!) if our current "Post-COVID" trend holds. But that feels a little optimistic to me, with consolidation and inventory duration being critical themes in the industry today.

[PDF] Five Key Well Over-Engineering Mistakes

Avoid Pitfalls!!

In this PDF we show you the 5 over-engineering mistakes in well design!

Explore the complexities of proppant intensity, fluid management, and subsurface design. SHAP values illuminate the path to optimal well performance.

Ready to see what’s under the hood and how Novi Labs can help you get valuable insights?

Book your personalized demo with our team: https://novilabs.com/request-for-demo/