On May 23, PESA held a West Texas Regional District Meeting at the Petroleum Club in Midland, TX. Featuring keynote speaker Denzil West, CEO, Admiral Permian Resources (APR), the meeting provided an opportunity for PESA Members to network and discuss the challenges facing service and supply companies in the Permian Basin.
Following opening remarks from PESA President Leslie Beyer, West Texas Steering Committee Member Jeff Wilhelm, Sr. Vice President – Water Management/Lift, GR Energy Services, spoke about upcoming events for PESA’s West Texas Chapter, including a July meeting with Steve Hassmann, General Manager, Drilling & Completions Mid-Continent Business Unit, Chevron.
PESA Advisory Board Member Jim Wicklund, Managing Director of Energy Group, Stephens, Inc., offered a market outlook and presented his analysis of present and future energy markets.
Wicklund commented that E&P companies must watch capital budgets closely because investors on Wall Street are paying close attention to their capital spending. Wicklund said that E&P companies are now owned by people who insist on seeing not only a return of capital, but also a return on capital.
According to West, his company has experienced excellent well results across the Permian with first year BOE production reaching nearly 400,000 resulting in first year revenue of $12.8 million.
APR focuses on performance because in West’s words “execution drives economics.” The company focuses on repeatable drilling results, 100% recycled water usage and optimal frac design to reach their goals. Strategic vendor relationships are also key to the company’s success. APR sees service providers as partners in the process.
“They are experts in their area, not breakfast delivery guys. They are problem solvers, and they are looking for how they can make us better,” West said.
The key to a good collaboration? West says it is a combination of planning and communication.
West Texas Regional District Meetings create productive group settings to address critical issues and share best practices. For information about future PESA events in the Permian and beyond, please refer to the PESA Event Calendar or contact Molly Determan, Vice President Strategy & Programs. The next district meeting is set for July 17.