Colorado flooding – Continued over the weekend so must put on the radar for possible Q3 hiccups for both E&P production and oil services risk. Flood / transitory events won’t change investment thesis around a given stock, but must take into account so that expectations reasonable. Weld county is primary area of concern where 42 of CO’s 68 drilling rigs working. APC (12 rigs per RigData), NBL (11) are biggest operators but also matters to smaller players BBG (3), PDCE (3), BCEI (3), CRZO (2). For OFS, duration matters with Weld county 3% of US horizontal rig count.
No long-term impact, but flooding may delay a few completions. It should not impact rigs that are already on location.
Colorado Flooding
Colorado Flooding
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group