May 24, 2022
Oilfield Services: US drilling rig report
US active land rig count up 14 week-over-week
Our view: In this publication, we cross-reference public drilling rig data sources to track short- and longer-term trends in rig activity levels. Please see Exhibits 2–11 for overall and basin-specific activity trends across drillers, basins, and customers. Exhibits 12 and 13 highlight our valuation comparables, ratings, and price targets for companies under coverage.
Baker Hughes land rig count up 14 w/w, to 710
Oil land rig count increased by 13 w/w. The US oil land rig count increased by 13 to 558 w/w, while the gas land rig count increased by 1 w/w to 150. The Permian active rig count of 343 increased 8 w/ w. The region accounts for 61% of oil rigs in the Lower-48 and 48% of total US land rigs. For additional North American rig activity details, please see here for the latest edition of our Canadian Oilfield Services Trend Tracker.
Activity trends by basin: Permian increased 8 w/w
Permian ↑ 8 rigs w/w, at 343. The three most active drillers in the Permian are HP (93 rigs, 27% of total), PTEN (50 rigs, 15% of total), and NBR (32 rigs, 9% of total). The Permian rig count crossed the 5- year average of 338 for this time of year. The most active Permian operators are Pioneer (25 rigs), EOG (17 rigs), and Mewbourne (17 rigs).
Eagle Ford ↑ 3 rigs w/w, to 65. The three most active drillers in the Eagle Ford are HP (26 rigs, 36% of total), NBR (11 rigs, 15% of total), and ESI (8 rigs, 11% of total). The most active Eagle Ford operators are ConocoPhillips (5 rigs), EOG (5 rigs), and BP (4 rigs).
Haynesville ↑ 2 rigs w/w, at 70. The three most active drillers in Haynesville are HP (16 rigs, 22% of total), PD (13 rigs, 18% of total), and NBR (10 rigs, 14% of total). The most active Haynesville operators are Aethon (14 rigs), Southwestern (12 rigs), and Comstock (6 rigs).
Appalachia flat w/w, at 51. The three most active drillers in Appalachia are PTEN (22 rigs, 42% of total), NBR (8 rigs, 15% of total), and HP (7 rigs, 13% of total). The most active Appalachia operators are Chesapeake (5 rigs), Ascent Energy (4 rigs), and EQT (4 rigs).
OFS stocks 4% higher, while WTI remained flat w/w
OFS stocks under coverage increased 4.4% w/w, while the 2022 WTI remained flat w/w, Brent remained flat w/w, and Henry Hub futures strip prices increased 5% w/w. The top three performers were STEP (+17.2%), ESI (+15.1%), and PD (+13.0%). The bottom three performers were NBR (+0.3%), CEU (-1.2%), and EFX (-1.7%). Our Oilfield Services coverage group is up 64.0% YTD vs the S&P 500 index down 17.7% YTD.