Oil and Gas Investor Magazine - June 2016

Cover Story

A Pivotal Role For Private Equity

With banks in retreat, private equity stands out as a critical source of funding—and management teams have their pick of the increasingly valuable assets coming to market.

Feature

A&D Watch

Fresh off buying WPX Energy Inc.’s San Juan Basin gathering system, buyer I Squared Capital said April 14 it sold a 28% stake in the oil, gas and water gathering system to GE Energy Financial Services.

At What Price Glory?

With lower breakeven prices, the industry might start making money again—but at what oil price? Is $50 the new $90? Here’s how breakevens affect returns.

Innovation In The Shale Lab

Drilled but uncompleted wells offer a proving ground for drilling and completion technology. Here, experts debate recent findings.

Lessons Learned

Debt and restructuring experts at IPAA’s Managing Debt In Troubled Times conference discussed insights gained from past downturns and how to apply them to the present.

Oversupply Sets Stage For US Influence

The annual Energy Seminar at the University of Oklahoma showcased pragmatic approaches to U.S. energy policy in an oversupplied world.

Surviving The Recovery

A profitable future for E&Ps rests on their ability to transition from a “boom” mentality to a single-minded focus on lessening cost and risk.

The Spac Is Back

Having fallen out of favor in the midst of myriad concerns, more favorable new terms have brought back the Spac.

The Unbearable Lightness Of Exports

At an average export rate of 404 Mbbl/d over 2014 and 2015, 280 MMbbl of U.S. light crude and condensate were kept out of storage caverns or tanks. Instead, those barrels were sent to the global market.

A&D Trends

Out The Window

“When you think about the number of rigs that are running and the amount of capital going into the play today, it’s giving you a pretty good indication of the economics,” said Steve Campbell, Newfield’s vice president of investor relations.

At Closing

Looking For Leadership

At the same time, this got me thinking about leadership in the corner office. With so many oil and gas companies in dire financial straits, if not bankruptcy, it brings up the question of executive leadership and the decisions that may have contributed to too much leverage throughout the industry.

Bright Spots

Meet Cliff Vaz

Cliff Vaz holds degrees in economics from the College of Wooster and in chemical engineering from the University of Iowa. In a recent interview, he discussed banking trends, the recent redetermination season and the future of upstream finance.

Completions

Does OPEC Still Matter? Yes, Indeed

The group has no power to compel its members to adhere to any of its agreements or guidelines, Lee said. “OPEC exists to serve the interests of its members—that is its only purpose.”

E&P Momentum

Mississippian Phase Shift

The Oklahoma story line involves a phase shift to oilier Mississippian targets closer to the Anadarko Basin trough. Geologically, it is a matter of moving beyond the shelf margin and shallow carbonates into basin-centered targets.

From the Editor-in-Chief

The Man Behind The Look

One evening in 1980 at a company Christmas party, Hart founder Don Hart told Conly that he and former National Geographic photographer Lowell Georgia were hatching an idea for a publication that would be the National Geographic of the oil and gas industry.