Unconventional Discipline; Continuing Consolidation
ConocoPhillips' Delaware Basin plan of development optimizes around known issues: well interference, parent-child interaction, surface use constraints and others, according to Wendy King, the company's vice president of its Great Plains Business Unit, Lower 48. King gave the mid-morning keynote at Hart Energy's Executive Oil Conference at the Midland Horseshoe Arena & Pavilion, where she also said the company is using experiences in other basins to optimize its Permian program.
"We have learned the value of taking a disciplined approach over the past decade of developing unconventional," she told the audience.
According to King, ConocoPhillips is targeting 90% water reuse in the Delaware Basin by the third quarter of 2020 by using data analytics and automation. "We have stepped up" on water management in the Permian, she said.
Following King, The M&A panel took the stage. Mohit Singh, senior vice president of business development and exploration at BPX Energy, kicked off the panel by giving an update on the BP subsidiary born out of the transformational BHP acquisition of U.S. shale assets last year.
Since acquiring "better rocks," BPX Energy has diverted most of its resources away from legacy assets that no longer compete for capital in the BP portfolio, according to Singh. As a result, BPX Energy has been busy in the past year trimming these legacy assets including the sale of its SWOOP assets to Lime Rock earlier this year.
Singh added that the company has an East Texas package under PSA that should be closing early December plus the company expects signing PSAs for other packages in coming months.
He said the company is looking to grow in the Delaware Basin but any acquisition has to make sense from a balance sheet point of view and earnings per share. "Those metrics have to make sense for any acquisition," he said.