[Editor's note: A version of this story appears in the September 2018 edition of Oil and Gas Investor. Subscribe to the magazine here.]
In mid-2014, the eastern window of the Eagle Ford was a hotbed of activity. Operators ranged from Anadarko Petroleum Corp. (NYSE: APC) to Occidental Petroleum Corp. (NYSE: OXY ) In addition to the Eagle Ford, some E&Ps were targeting the Austin Chalk, Woodbine, Buda, Georgetown and Glen Rose.
The area had up to 30 rigs at work pre-2015. With the downturn, that faded. Some producers folded. Others sold, particularly to devote to the Permian Basin what capital they could muster.
But securities analysts report that an eastern Eagle Ford renaissance is underway among those who stayed with the leasehold. And it’s timely: Subash Chandra, senior equity analyst for Guggenheim Securities LLC, wrote that the cure for “Permi-phobia”—that is, the fear of takeaway constraint—is the Eagle Ford.