Doug Sheridan honors…
….Mewbourne, Endeavor Energy Resources, LP, and CrownRock, three of the the largest private operators in North America, have grown production significantly over the last few year.”
Doug Sheridan honors…
Per the FT, while public E&Ps, under pressure to return cash to shareholders, have taken a more cautious approach to drilling new wells, Mewbourne, Endeavor Energy Resources, LP, and CrownRock, three of the the largest private operators in North America, have grown production significantly over the last few year. Per the EnergyPoint Research post below, its made them prime acquisition targets of larger public operators.
Mewbourne Oil Company has ramped up Permian production from 129,000 Boe/d in early 2019 to 371,000 in August, according to Rystad. It's not by mistake. “It takes some courage to have a little bit of a contrarian attitude,” said CEO Ken Waits. “The best time to be drilling wells is when costs are low . The best time to be investing is when there’s blood in the streets.”
Mewbourne is the most active private driller in the Permian—and one of the most active overall. With 19 rigs in the field as of the end of last week, only Occidental Petroleum and Pioneer Natural Resources Company are running more.
The company was founded in 1965 by Curtis Mewbourne, who died last year. He had long insisted it was not for sale. “No one can have a reasonable discussion with them,” said one person who has followed the company closely.
Meanwhile, privately owned Endeavor pumped 391,000 boe/d in the Permian in August, leaving it neck and neck with Mewbourne. And like Mewbourne, it owns an enviable trove of yet-to-be-drilled acreage—that has made it a prime target for consolidation.
The next prized target is Endeavor, owned by Autry Stephens, one of the wealthiest individuals in the state. His fortune today is worth $14.8bn. A self-made wildcatter, Stephens went into business on his own with a solitary rig in 1979. Endeavor sprang out of that venture in 2000 and rose to become one of the leading private operators in the US.
Our Take 1: There are few leadership qualities we admire more than the courage to pursue contrarian strategies, especially at times when conventional wisdom reigns supreme. Since 2019, these private operators bucked pressures from all sides to pursue growth in an industry that seemed to have given into the critics—even as it seemed to have given up on itself.
Out Take 2: If only more public company execs in the oilfield could find the necessary words (and courage) to buck conventional wisdom and make the case for growth to an investor set that doesn't understand either the role of hydrocarbons in the global economy or just how much we'll need them for decades to come.
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