Rig count increases nearly 20 rigs in the last week

The U.S. rig count rose by 19 rigs in the last week to 468 as of March 3, according to Enverus Rig Analytics.

The most-active operators in the U.S., per Enverus, are currently EOG Resources Inc. (22 rigs), Pioneer Natural Resources Co. (21), Devon Energy Corp. (17), Occidental Petroleum Corp. (15) and ConocoPhillips Co. (14).

The Permian Basin added nine rigs over the last week. Pioneer had been running an average of 18 rigs in the Permian in February but has climbed up to 21 as of March 3, which is the company’s highest count since April 2020. Centennial Resource Development Inc. also increased its active count in the Permian Basin to four over the last week.

The Haynesville saw a five-rig increase, with Aethon Energy’s two-rig increase to a total of seven leading the way. The Denver-Julesburg Basin also rose by two rigs over the last week. The Anadarko, Appalachian, Gulf Coast and Williston basins all were flat or lost rigs.

WTI crude futures in the U.S. rose to more than $66/bbl this week and closed at their highest since 2019 as OPEC+ kept production cuts in place for another month.

With prices rising, a growing number of energy firms now plan to boost spending a bit in 2021 after cutting capex over the past two years. The spending increase remains small as firms continue to focus on boosting cash flow, reducing debt and increasing shareholder returns rather than increasing output.

U.S. financial services firm Cowen & Co. said the 45 independent E&P companies it tracks plan to increase spending about 2% in 2021 versus 2020.

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