The average full-cycle breakeven for U.S. shale basins is approximately $54/bbl, according to Rystad Energy data.
A closer look at the data shows the median breakeven oil price for U.S. shale assets (new wells) of public E&Ps is $53/bbl WTI while for private operators, which account for approximately 37% of U.S. onshore oil production), is $58/bbl, Wells Fargo announced March 24 in a research report, citing Rystad data.
“We estimate E&P (public and private) fully loaded breakeven oil prices remain well below the strip and our downwardly adjusted oil price deck,” Wells Fargo equity analysts Roger D. Read and Hanwen Chang said in their report. “By basin, the Permian (Delaware & Midland) remain the leaders.”
Public operators on the south side of the median with the lowest breakeven price include EOG Resources ($39/bbl), Matador Resources Co. ($40/bbl) and Diamondback Energy Inc. ($43/bbl), according to data compiled by Rystad and Wells Fargo.
For the private operators, the companies with the lowest breakeven price were Providence Operating ($33/bbl), Verdun Oil Company ($35/bbl) and Gulftex Energy ($38/bbl).
In terms of breakeven prices by major U.S. shale basins, the difference from one end of the spectrum to the other is $20/bbl.
The Delaware Basin offers the lowest breakeven price at $46/bbl, followed by the Midland basin at $52/bbl and DJ Niobrara at $53/bbl. The Anadarko basin is on the other extreme with a $66/bbl breakeven, which is near current spot pricing, the analysts said.
The Eagle Ford and Bakken fall in the middle of the pack with breakeven prices of $59/bbl and $60/bbl respectively.
Recommended Reading
Quantum’s Wil VanLoh on Turning ESG into E$G
2024-05-21 - Wil VanLoh, founder and CEO of Quantum Energy Partners said private companies need to change their mindset on ESG because they’re building a product to sell to public companies — and may be missing out on cost savings.
Kimbell Royalty's Board Member Ben Fortson Passes Away
2024-05-21 - Ben Fortson had more than 60 years of experience in the oil and gas industry and was with Kimbell Royalty Partners from its IPO in 2017 into 2024.
CGG to Change Name to Viridien
2024-05-17 - The company’s new ticker symbol will be “VIRI” and listed on Euronext Paris, effective May 21.
Sector’s Appetite for Capital Remains Amid Consolidation Frenzy, Panelists Say
2024-05-17 - There’s still an appetite for capital in the oil and gas sector—companies just need to think creatively to find it, a number of panelists said during SUPER DUG in Fort Worth, Texas.
SilverBow Resets Shareholder Meeting After $2.1B Crescent Deal
2024-05-16 - SilverBow Resources said it will adjourn its May 21 shareholders’ meeting until May 29 following Crescent Energy’s agreement to buy the Eagle Ford operator.