Diamondback - Endeavor Merger: Inventory Growth and Production Insights

Dear Subscriber,

We're thrilled to share our latest weekly workflow video! Join Scott Iceton, our Director of Solution Consulting, as he analyzes drilling patterns and geologic factors in the Delaware Basin.

Also, in addition to our report, we're excited to offer you an in-depth blog post delving into the intricacies of the Diamondback-Endeavor merger.

Also, we bring you not only a report but also a blog post dissecting everything you need to know about the Diamondback-Endeavor merger. This analysis covers a wide range of critical factors, including inventory management, production volumes, and market dynamics. Read the full blog post here >>

Expanding on the theme from previous weekly newsletters, our VP of Product Management, Ted Cross, has crafted two must-reads: "Fluid vs. Proppant: What drives Well Performance" and "Analyzing North Dakota's Latest Production Data"

But wait, there's more! We've also got a blog post where we spill all the details about NAPE 2024. Discover everything from industry changes to incredible experiences. Dive into our latest blog to uncover the top highlights and insights.

[Weekly Workflow Series] Delaware Basin Insights: Analyzing Drilling Patterns and Geologic Factors

How do I get a foothold in the busiest basins?

Whether it's Permian or otherwise, get valuable geologic context alongside production to quickly vet potential acreage!

Join Scott Iceton in this his video of Weekly Workflows!

[Report] Diamondback and Endeavor Merger

Curious about the energy sector’s latest shake-up?

Dive into our analysis of the Diamondback-Endeavor Energy merger! With a $26 billion deal, Diamondback Energy (NASDAQ: FANG) is primed to challenge ExxonMobil for Midland Basin supremacy, boasting a $60 billion enterprise value and moving up to second place on gross volumes.

The report not only dives into the numbers but provides insights into the productivity prowess of Diamondback Energy and Endeavor Energy Resources, LP. It covers remaining inventory quality, rock quality distribution, and drilled/operated well locations, providing exclusive insights derived from Novi’s upstream data.

Fluid vs. Proppant: What drives Well Performance

The amount of fluid pumped in the completions job is an underrated driver of well performance gains. Interestingly, it's been pretty stable in most basins since 2019 -- with the exception of the Denver-Julesburg and Powder River. What's going on?

Looking across the major unconventional basins, we see a broad spread in fluid intensity ranging from ~20 bbl/ft in the Williston to 80 bbl/ft in the Haynesville. However, much of this variation follows the proppant intensity -- this chart would look pretty similar if I showed it to you for proppant pounds per foot.

Originally, L48 operators drilled completions jobs with higher ppgs (pounds of proppant per galllons of fluid) using gel fracks and sliding sleeve completions. As operators implemented slickwater jobs with plug and perf style, productivity increased dramatically. A big part of that rise was simply increased fluid volumes.

In much of our modeling, we find that the fluid intensity is as important, or even more important to well performance than proppant. Generally, our models find in the shallower plays and shallower parts of plays that fluid intensity is relatively more important than proppant intensity. The completions fluid isn't just carrying proppant -- the pressure delivered by the fluid creates and propagates hydraulic fractures.

In the DJ, operators have taken notice of the importance of fluid intensity, and we see a significant run-up over the past couple years, accompanied with wider interwell spacing and longer laterals.

In the Powder River Basin, the story is a little different! Operators have been drilling a much higher proportion of wells in the Niobrara and Mowry unconventional intervals, where they pump ~50 bbl/ft. So the average in the basin is trending up, even though those individual formations have had flat or declining fluid intensity over the past few years.

This is a trend we will keep an eye on, as this has occurred at the same time as consolidation in the DJ! Very interesting.

[Blog] Diamondback - Endeavor Merger: Inventory Growth and Production Insights

Last week's $26 billion merger between Diamondback and Endeavor has everyone question; 1.) How many years of running room did the acquisition buy the company? 2.) How had rock quality translated to cumulative volumes per well?

In our latest post, Brandon Myers, dissects this recent merger, from inventory, production volumes, and market dynamics.

Redour blog post now!

Analyzing North Dakota's Latest Production Data

Lots of attention on the September EIA production numbers -- one standout is North Dakota, which has just set a fresh post-COVID high. This is a really interesting case study on unconventionals later in life. Let's dive in.

With 110 wells brought online in August and another 110 wells brought online in September, activity in North Dakota has reached pre-COVID levels. We still aren't back to mid-2019 levels, but it's looking pretty strong. A higher share of wells are coming online in Mountrail and Williams counties, rather than the traditional McKenzie core.

Per-well productivity has been dropping slightly year over year over year, but we are not seeing anything super significant. In terms of well design, operators have been slightly increasing lateral lengths, slightly increasing completions fluid intensity, and widening spacing quite a bit. This might be the recipe for Tier 2/Tier 3 rock for the play (note the DJ shows this design package trend in spades).

One more very interesting contributing factor: operators have been bringing older wells back on production. If you look at the original chart, you see a slowing decline or even a slight increase from older wells. ~450 wells have been brought back online since the start of the year.

Fascinating to see this happening given the current commodity price environment. Will be keeping an eye on this!

[Blog Post] What we saw at NAPE 2024 – Insights and Highlights

Curious about what went down at NAPE 2024?

From shifting industry focuses to amazing atmospheres, uncover the top highlights and insights in our latest blog post.

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/