Permian investment efficiency: benchmarking the top operators

The one constant in the Permian Basin is change. Operators must successfully adapt to a shifting landscape or risk falling behind. In this Insight, we look at how ten well-known Permian companies have navigated the Basin and invested their capital over the last five years. We compared each company on investment efficiency. This metric looks at the ratio of total drilling and completions dollars spent to the volume of hydrocarbon produced. The metric varies significantly by company and over time. Since 2016, three phases have influenced the Permian, each with its own opportunities and challenges. Corporate response to these phases create winners and losers. The benchmarked companies showed significant progress coming into 2020. But post-2020, we see a fourth phase taking shape. One where perfomance gains and costs are tough change for the better. But its not all bad, we highlight what operators can still do to improve investment efficiency and shine in the years to come.