Well Completions Costs Update from Stifel - Aug 31

[dan_s]

Note from Stephen Gengaro an analyst at Stifel that is focused on oilfield services

"Accounting for roughly 60-65% of total drilling & completion costs, completion costs are a critical driver of overall well costs. Following a 2Q20 drop to unsustainable levels, we expect pressure pumping prices to rise modestly in 2H20 and 2021. However, given the significant supply overhang coupled with our expectations for a gradual increase in E&P activity, we do not envision sharply higher frac prices until 2022. Of the pressure pumpers, we believe Liberty (LBRT: $6.81, Buy) is the best positioned to weather the storm, and on the E&P side, EOG Resources (EOG: $46.21, Buy) and Pioneer Natural (PXD: $105.60, Buy) are the biggest beneficiaries of low pressure pumping prices."