Enverus Unveils Operator Intelligence, Delivering ‘Unprecedented and Unparalleled’ Insight on 180 Oil and Gas Producers

Austin, TX (September 11, 2019) – Enverus, the leading oil and gas SaaS and analytics company, today unveiled Operator Intelligence — executive-level research reports covering hundreds of notable public and private upstream oil and gas operators. The new tool draws from Enverus’ world-class datasets to deliver benchmarking and trend analysis while telling clear, compelling stories that capture the nuance of each operator. Live, curated workspaces accompany the reports and enable readers to quickly dive deeper and interact with our broader Enverus Drillinginfo platform.

“Until now, there was no easy way to quickly access up-to-date, aggregated summaries of the hundreds of public and private E&Ps,” said Colin Westmoreland, Senior Vice President & General Manager of Market Research at Enverus. “Executives across the energy value chain have been asking for a high-value research product like this, and we’ve delivered. We’re excited to help the industry’s key decision makers by adding context to our differentiated datasets and providing faster answers to some of their most important questions.”

“Operator Intelligence offers objective analysis that can be digested quickly, without hardly any technology learning curve. All users need to do is enter a company name and launch a search. In one click or tap, they’ll have access to a full research report,” added Westmoreland.

Examples of questions answered by Operator Intelligence include:

  • Where, exactly, is an operator’s position located? How good is their acreage?
  • How was the position built? Were M&A transactions cheap or expensive?
  • What landing zones is an operator targeting? How does each perform relative to peers?
  • Is productivity improving or declining?
  • Have private equity-backed operators improved performance since acquiring and assuming operatorship of their assets?
  • How are operators changing behaviors, and why?

Andy McConn, the principal analyst behind Operator Intelligence, is excited to maintain the momentum, continue to evolve the product, and add value to our industry’s decision-making process. “A lot of compelling analysis easily falls out of Enverus’ powerful product suite, but we don’t intend to rest on our laurels with this first iteration. We’re excited to build out more forward-looking, economics-based research and get to the heart of our customers’ needs.”

Operator Intelligence sits inside a suite of other value-add products that work across several of Enverus’ platforms. The full suite of Operator Intelligence products will scale and evolve alongside Enverus’ broader analytics ecosystem and is the latest solution under the Enverus Drillinginfo business unit.

This two-minute video demonstrates how oil and gas executives can utilize the new Operator Intelligence tools from Enverus to obtain critical and timely information on more than 180 oil and gas producers.

Members of the media interested in a sample of Operator Intelligence should contact Jon Haubert with the name(s) of the company or companies they are requesting.

Enverus Boosts its Collection of World-Class Geology Solutions with Reservoir Visualization, Inc.

Austin, TX (August 28, 2019) – Enverus, the leading energy SaaS and data analytics company, announced today that it has acquired approximately 200,000 geological well datasets from Reservoir Visualization, Inc (RVI). The expansion quadruples Enverus’ interpreted well log catalog and is the first announcement since the company changed its name from Drillinginfo earlier this month.

Enverus’ products have earned a reputation for their strong scientific foundation and commitment to complete transparency. Today’s announcement follows a long line of investments in sub-surface expertise, including a recently released product pioneering well-spacing and parent-child relationships between wells, two of the most important topics in the oil and gas industry as operators transition from delineation to developmental drilling programs.

Fringe and infill areas of today’s most prolific basins, emerging plays, and specialty areas will all benefit significantly from these expanded datasets, as will the derivatives that are produced from this influx of additional data. As just one example, more landing zones and wellbore statistics of higher precision will expand Enverus’ geographical areas of coverage.

“Not all data are created equal,” noted Jimmy Fortuna, Senior Vice President of Products at Enverus. “RVI shares Enverus’ commitment to quality geologic interpretations as the basis for advanced analysis, making this acquisition an ideal fit for both companies. These assets are core to the work our customers are focused on, as well as instrumental in their field development plans. It’s a significant addition to our existing, robust geologic and engineering assets, and makes Enverus one of the largest interpreted dataset holders in the market,” Fortuna said.

“With the advent of powerful and inexpensive machine-learning technology, some have statistically modeled the subsurface using sparse datasets. Models produced using machine learning or statistical methods are only as good as the ground truth datasets used to train them. Sparse datasets fail to appropriately constrain the models that depend on them, and they also don’t realistically allow customers to improve the models with their own data and interpretations,” he said.

Producing large datasets is easy with these shortcuts, but producing precise ones is impossible.
Since its beginning, Enverus has always focused on transparency, whether a given data element is produced scientifically, and with the direct benefit of underlying ground truth, or if it is instead produced using a model that approximates values as accurately as possible using appropriate constraints from ground truth. In this manner, Enverus has recently expanded its landing zone coverage with the introduction of derived landing zones – which is separate from the company’s interpreted landing zones – a distinction most of Enverus’ competitors cannot claim to make.

“Our best-in-class training dataset produced by the ongoing interpretive work of geoscientists specializing in specific basins and using our proprietary Transform technology already placed us firmly ahead of our peers. This acquisition increases that lead substantially,” Fortuna said.

Enverus encourages existing customers to contact their account manager, and new customers to contact a sales representative via Enverus.com to learn how to request access.

Drillinginfo Announces Name Change to Enverus

Austin, TX (August 22, 2019) – Drillinginfo, the leading energy SaaS and data analytics company, announced today that it has changed its corporate name to Enverus. Marking both the company’s 20th anniversary and surpassing $300 million in Annual Recurring Revenue (ARR), the new name and brand better reflects the company’s identity as a leading data, analytics, and efficiency partner across the energy sector.

“Our company’s purpose is to create the future of the energy industry together in collaboration with our customers and partners. This is a larger mission than we began with and represents our evolution to becoming Enverus,” said Allen Gilmer, co-founder and visionary of the company. “I am so proud of our tremendous growth over the past two decades. We’ve never been better positioned to partner with our customers across the energy spectrum to help define its future. Now more than ever, we can deliver the most cutting-edge innovations to serve and fuel our industry’s leading innovators.”

“This business was started by ‘oilpatch kids’ in 1999 when the industry was on the cusp of both a massive digital revolution and a once-in-a-lifetime disruption from unconventional oil and gas. Over time, that team built a recognizable and iconic organization throughout the upstream oil and gas businesses. Together we achieved unprecedented energy production in the U.S. and across the globe. From the beginning, we have fueled ourselves by the power of our phenomenal people, and those people are now building the most important, integrated problem-solving platform across the world’s largest, most significant, and impactful industry ever – energy,” Gilmer said.

During the last three years, the company has grown tremendously through product innovation, market expansion, and acquisitions. Enverus will now be comprised of three business units – Enverus Drillinginfo, Enverus Trading & Risk, and Enverus Business Automation – all of which are highly complementary to one another and together create value for customers that could never be achieved otherwise.

Jeff Hughes, CEO and President, added to Gilmer’s remarks noting that, “The vision was always to build a company that created uniquely valuable data through active connections between businesses in the energy industry. We now operate the largest such system of active networks that has ever existed, and it is growing rapidly. The data analytics that result from this historically unique graph of energy industry participants are unprecedented, and it will create value for our customers that could never be provided any other way. This is an example of how our capabilities have expanded so much since our founding and we came to believe that our name no longer reflected our reach, so it was time to modernize the brand.”

The name Enverus is comprised of three elements that when combined, reflect the company’s past, present, future, and overall philosophy. EN: the energy industry; VER: clarity and truth; and US: partnership, collaboration, people, and humanity.

Jeff Hughes concluded by saying, “Energy is the largest industry in the world with unique regulatory, geopolitical, technological, demographic, and environmental complexities. Enverus will continue leading the industry in tackling these complexities with offerings that include irreplaceable efficiency tools and analytics that enable better, faster decisions. More powerfully, each of these capabilities connect our customers in ways which create value like no other business in the world.”

Permian Continues to Test the Limits of America’s Existing Midstream and Downstream Infrastructure

Austin, TX (August 7, 2019) – Drillinginfo, the leading energy SaaS and data analytics company, has released Permian to Gulf Coast Midstream, the latest installment of their FundamentalEdge series, which presents an overview of oil, gas, and natural gas liquids (NGL) infrastructure currently proposed between the Permian basin and Gulf Coast export terminal locations.

Underscoring the lack of adequate takeaway capacity in 2018-2019, plus the expected importance of coastal oil, natural gas, and NGL exports, in this report Drillinginfo highlights the expected impact of upcoming long-haul takeaway capacity projects and the price differentials they’ll create.

“The Permian basin has experienced unprecedented production growth and remains the world’s focus, from producer to private equity, to service and supply companies,” said Bernadette Johnson, Vice President of Strategic Analytics at Drillinginfo. “But the Permian continues to be challenged by existing pipeline constraints and the inability to efficiently and effectively move oil, natural gas, and NGLs to the market. All hydrocarbons are tied at the drill bit and one affects the other. Although many players in the Permian are targeting crude oil primarily, natural gas processing and pipeline bottlenecks can have a negative impact on that crude oil production. However, a light at the end of the tunnel may soon be visible – at least for those that can hang in there through 2020,” said Johnson.

In Permian to Gulf Coast Midstream, Drillinginfo analyzes numerous planned pipeline projects and the bottlenecks they expect will be cleared providing relief to America’s most prolific, but congested basin.

Key Takeaways from the Report:

  • Production growth in the Permian basin is testing the limits of existing midstream and downstream infrastructure, requiring further capital investment in long-haul pipelines, gas processing plants, NGL fractionators, and coastal export terminals.
    • Crude oil production continues to rise in the Permian basin despite economic headwinds resulting from sub-$60/bbl WTI prices. Nevertheless, the pace of growth is at risk of slowing significantly if the low flat-price environment persists. With additional long-haul pipeline capacity coming online in the second half of 2019, noncommitted shippers will likely find themselves squeezed out as spot arbs shut. As volumes are further increased to the Gulf Coast (and away from Cushing), additional export capacity will be required, and there is an acute need for new export facilities capable of fully loading VLCCs. A race to the finish has begun, with numerous onshore and at least seven offshore terminals currently proposed or in development.
    • Although natural gas production is mostly a by-product of drilling for crude in the Permian basin, flaring is just not a long-term option. In DI’s high case scenario, dry gas production could increase by 50% (~5 Bcf/d) over the next five years.
    • Market participants are also facing weak regional pricing, with Waha basis trading at levels more than $1.00/MMBtu under Henry Hub. Hence, at least five projects are currently proposed to alleviate this constraint. All projects will be transporting the gas east toward South Texas and Louisiana to feed LNG exports as well as growing power and industrial demand.
    • NGL production out of the Permian is expected to continue to grow, with most of the production destined for the Gulf Coast. To allow for the extra production, a number of pipeline projects are under construction or in planning to transport the NGLs. As NGLs arrive at the Gulf Coast, they are then fractionated. Fractionation capacity has been running tight since mid-2018, resulting in numerous fractionation projects along the coast. The fractionation bottleneck was relieved slightly in early 2019, when two projects hit the market. However, with most projects scheduled to come online in early 2020 and after, it is possible the bottleneck will reappear in late 2019 and early 2020.

Members of the media can download a shortened preview of the overall 20-page Permian to Gulf Midstream or contact Jon Haubert to schedule an interview with one of Drillinginfo’s expert market analysts.

Drillinginfo Report Highlights Impact on Pricing in Hyper Geopolitical Environment

Austin, TX (July 23, 2019) – Drillinginfo, the leading energy SaaS and data analytics company, has released Pricing in Politics, the 3Q2019 installment of its FundamentalEdge series. This market outlook service presents the company’s current view of the oil, natural gas, and NGL markets, and where they are headed over the next five years.

Pricing in Politics explores energy trends and pricing in a market highly affected by geopolitics and the continued impacts of sanctions and tariffs. “The story for 2019,” the report reads, “has been one of dashed hopes for those bullish market participants that believed a redoubling of efforts by OPEC+ would solve the oversupply conditions.”

“The trade tensions between the U.S. and China are creating a global economic activity slowdown and we’re continuing to see the effects politics has in crude oil pricing,” said Bernadette Johnson, Vice President of Strategic Analytics at Drillinginfo. “Even if OPEC keeps production constant and the U.S. and China agree to no further escalation in tariffs, non-OPEC production growth will remain in excess of global incremental demand.”

“While the price crash at the end of 2018 caused a drop in U.S. rig count in America’s shale plays, prices have recovered and the new mantra of free cash flow, return to shareholders, and ‘do more with less’ has caused operators to rethink their drilling and completion schedules and strategies,” said Johnson.

“With more than 1,000 wells drilled, but sitting uncompleted in the Permian, means there is a lot of crude oil production that could come on line quickly, but is not currently accounted for in the storage numbers or balances. U.S. basins continue to prove they hold great economics that result in continued growth expectations for production,” said Johnson.

Key Takeaways from the Report:

  • Efforts by OPEC+ and declines from Venezuela and Iran have eased excess supply; however, escalating trade tensions between China and the U.S. and their effects on global economic health and demand growth have been keeping a lid on prices. Heightened geopolitical tensions between Iran and the U.S. provide some support for prices, but ultimately demand needs to increase for fundamentals to support a balanced market and prices. The OPEC meeting and news around U.S.–China trade tensions will set the tune for next quarter.
  • Natural gas prices for Henry Hub have plummeted recently, trading under $2.30/MMBtu. Only a month ago, prices were above $2.60/MMBtu, and during the first quarter of the year, prices reached $3.00/MMBtu. Despite record-high LNG export levels, underwhelming early summer power demand along with strong production growth have pushed inventory levels up. Looking ahead, natural gas prices of $2.60-$2.75/MMBtu will balance the market, allowing production to increase at a rate to meet the expected demand growth.
  • NGL prices have taken a downturn in the first half of 2019. Production and stocks are at or near record levels for propane and butanes, causing downward pressure on prices. Additionally, prices have been impacted by slowing global economic demand as well as the trade war between the U.S. and China, as LPG exports to China have become nonexistent.
  • The E&P mantra remains focused on capital efficiency, living within cash flow, and returning cash to shareholders. These themes are here to stay. Q1’19 earnings reports show little change to E&P guidance for 2019. Chevron and Occidental spiced up the earnings season with the bidding war on Anadarko. Despite that, Q1 yielded 10-year lows in the upstream deal market. Expect Q2’19 reports to continue to explore how operators are handling price volatility and discussions on efficiencies, Permian gas bottlenecks, and M&A.

Members of the media can download the 19-page preview of Pricing in Politics or contact Jon Haubert to schedule an interview with one of Drillinginfo’s market analysts.

Wall Street Funding Slowdown for Energy Continues with Q2 Capital Raised Via Public Equity & Debt Issues Off 36% YOY

Austin, TX (July 17, 2019) – Drillinginfo, the energy industry’s leading SaaS and data analytics company, released its Q2 2019 Capital Markets review revealing $16.9 billion in aggregate funds raised via energy industry public equity and debt offerings. The amount is down 36 percent from the same quarter a year ago, and down 23 percent from funds raised in Q1 2019.

“These numbers understate how weak capital markets were for parts of the industry,” said Drillinginfo analyst Andrew Dittmar. “In a particularly poor showing, the upstream and oilfield service sectors combined to raise only $300 million from fresh equity, and $2.5 billion from bond issuances,” said Dittmar.

On a bright note, the industry supported two initial public offerings that raised a combined $1.025 billion in Q2, almost double Q1’s $505 million. However, a once-probable IPO issue in midstream’s dynamic water management sub-sector was taken off the table when the Permian Basin-focused candidate withdrew its registration statement during the quarter, opting instead to fund privately with banks and an overseas sovereign fund.

The data was compiled by Drillinginfo’s Capitalize platform, which tracks securities and credit activity of energy companies that file with the U.S. Securities and Exchange Commission, as well as private investment activity.

Equity Markets Up Sequentially, Down YOY

↑ The industry raised $3.4 billion from public stock offerings during Q2, up 189% sequentially but off 19% YOY.

↓ Upstream sold $261 million in public equity in Q2 through a sole offering, the IPO of Brigham Minerals, and was down by half sequentially and 75% YOY. It was upstream’s second-worst equity raising quarter since 2010.

↑ The midstream sector issued $1.6 billion of equity, up 400% from Q1 and 17% YOY. IPO Rattler Midstream Partners’ $765 million raise accounted for almost half the total.

↓ There were no public equity offerings in the oilfield services sector in Q2, a first since 4Q15. The sector had raised $312 million in Q1 and $1.7 billion in 2Q18. Additionally, downstream had no fresh public equity offerings.

“Wall Street emphatically closed the door on fresh external capital for upstream companies, especially from equity raises. That is consistent with calls for E&Ps to live within cash flow,” added Dittmar. “The sole equity success story was Brigham’s IPO and its business of owning minerals and collecting royalties isn’t exactly representative of the broader industry. Similarly, it was tough sledding for oilfield service companies, which are being crimped by cutbacks in upstream spending,” he said.

“The only continued momentum for capital raises came from midstream companies and integrated utilities, which combined to account for 95 percent of energy sector stock issuances and 85 percent of bond sales, including the spinout of Rattler by Diamondback. Unsurprisingly, midstream asset sales are also where E&P companies are looking to raise capital,” added Dittmar.

Capitalize tracked a total $3.4 billion in industry-wide equity issuances through six offerings in Q2. This compares with $4.2 billion in 18 equity offerings in 2Q18 and $1.16 billion across five offerings in Q1, which marked the industry’s lowest output of total equity deals this decade.

Private equity groups also continued their affinity for midstream deals in Q2, making nine new commitments with a disclosed total of $6 billion. Upstream came in second on commitment count with six during the quarter, Capitalize reported. The Permian is unsurprisingly the main target for upstream private capital while midstream investments are geographically diverse.

Bond Issues Fell 39 Percent YOY and 36 Percent from Q1

Capitalize tracked the issuance of $13.5 billion principal amount across 24 bond floats industry wide in Q2, compared with $21 billion through 30 deals in Q1 and $22 billion through 34 deals YOY. Average principal amount in Q2 of $561 million was off 19 percent sequentially and 13 percent YOY. Investment-grade issuers accounted for two-thirds of the debt floated during Q2, down from 75 percent in the previous quarter. Generally, the trend over the last year has been a focus on a better credit quality of issuer for underwritten bond offers. Midstream represented 57 percent of debt raised and 50 percent of activity.

Bond Floats by Sector

↓ Upstream issuers sold $1.96 billion in notes through five floats, off 57 percent from the $4.58 billion raised via six deals in the previous quarter and 66 percent down from the $5.71 billion in debt raised across 12 issuances YOY.

↓ Midstream raised $7.7 billion in debt across 12 deals, 22 percent below Q1’s $9.9 billion through 13 issuance and 38 percent lower than $12.48 billion in debt raised via 17 deals in 2Q18.

↓ Oilfield services raised $0.53 billion in debt through one offering in Q2 compared with $0.61 billion from five bonds in Q1 and $1.6 billion sold via two offerings in 2Q18.

↑ Integrated companies (in this case integrated utilities) issued $3.8 billion in bonds during Q2 compared with $4.0 billion in Q1 and $3.0 billion in 2Q18.

Full copies of the report are available upon request.