Privately held Permian Basin operators count on execution and flexibility to generate oil and gas sector-leading capital returns.
Admiral Permian, which formed in 2017, is pushing the economic boundaries of the Delaware Basin westward. (Photo courtesy of Admiral Permian Resources LLC)
Every pundit worth a podium presentation insists consolidation is essential to reduce redundant cost and increase capital efficiency in oil and gas. But few acknowledge the persistent resilience of smaller operators who compete effectively against deeper-pocketed, publicly held peers.
In fact, innovation is a common characteristic for nimble smaller firms, who create value in overlooked areas by extending existing plays into new areas. Scala Energy LLC and Admiral Permian Resources LLC have done this in the western Delaware Basin, as has Discovery Natural Resources LLC in the southern Midland Basin. Or, they can expand a play’s Tier I economic core through superior execution, as has Caza Petroleum Inc. in New Mexico’s northern Delaware Basin.
Richard Mason is chief technical director at Hart Energy. He has 20 years of experience in oil and gas writing and publishing. He served previously as director of research for PLS Inc. and as owner and publisher of The Land Rig Newsletter.
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