By Mary de Wet
Crestwood Equity Partners LP said the commodity outlook is still favorable, after the owner and operator of midstream businesses in shale plays experienced higher natural gas volumes in the second quarter, particularly in Eddy County, NM
On the outlook:
“As we look into the second half of 2022 and 2023, the commodity outlook remains very favorable for our top-tier customers in the Williston, Delaware, and Powder River basins and our portfolio is now well positioned to shift our strategy back to harvest mode.” As we look to leverage our larger asset base to better service our customers’ production growth,” said Chairman and Chief Executive Robert G. Phillips.
On Delaware Basin:
During the second quarter 2022, the Delaware Basin averaged natural gas gathering volumes of 270 MMcf/d, an increase of 22% year-over-year, and processing volumes of 151 MMcf/d, an increase of 124% year-over-year year,” Crestwood Equity Partners said.
“Gathering volumes on the Willow Lake system in New Mexico increased significantly year-over-year by 131%, as private producers continue to drive activity levels.
“As of July 22, 2022 there were 48 rigs operating in Eddy County, New Mexico, making it one of the most active counties in the US”
“During the second quarter, 41 wells were connected to the Delaware Basin systems. Including the newly acquired Sendero assets, Crestwood now expects more than 120 well-connects in the Delaware Basin in 2022.”
On Williston Basin:
“During the second quarter 2022, the Williston Basin averaged crude oil gathering volumes of 76 MBbls/d, natural gas gathering volumes of 241 MMcf/d, natural gas processing volumes of 268 MMcf/d, and produced water gathering volumes of 165 MBbls/ d,” Crestwood Equity Partners said.
“Natural gas gathering and processing volumes, and produced water gathering volumes increased 70%, 95%, and 99%, respectively, year-over-year as a result of the successful integration of the Oasis midstream assets in the basin.
“Additionally, during the quarter the Arrow system continued to benefit from higher percent-of-proceeds revenue as commodity prices remain elevated.
“During the quarter, there were four rigs running on acreage dedicated to Crestwood and a total of 16 wells were connected. As a result of the late winter storms and temporary labor shortages for oilfield services in the basin, producer well connect schedules in the second quarter were delayed into the second half of the year.
“Based on current producer forecasts, Crestwood expects between 80 and 90 incremental wells to be connected throughout the third and fourth quarters.”
On Powder River Basin:
“During the second quarter 2022, the Powder River Basin averaged gathering volumes of 108 MMcf/d and processing volumes of 105 MMcf/d, increases of 8% and 9%, respectively, over the second quarter of 2021.”
Crestwood began flowing volumes through the Continental Express Pipeline during the quarter.
“Initial volumes have exceeded internal expectations and Crestwood expects these volumes to increase as Continental continues its active drilling program in the basin.”
On its emissions:
“Recently, Crestwood made progress on its carbon management program by collaborating with Bridger Photonics, Inc. to conduct aerial surveys on 100% of its assets in the Williston and Delaware Basins, including the recently acquired Oasis Midstream and Sendero assets.
“Through these efforts, Crestwood has developed a better understanding of emissions profiles at each asset and is able to further enhance its current continuous monitoring initiatives, which will overtime result in reduced methane emissions.”
Write to Mary de Wet at firstname.lastname@example.org