Comstock Resources
Comstock’s Q2 2024 natural gas production was in line with the midpoint of their production guidance. The company’s full year 2024 production guidance was unchanged compared to the prior reporting quarter. Their 2024 natural gas production is still expected to be higher YOY by 2.5%. Q3 2024 and Q4 2024 production is expected to be sequentially higher compared to that of Q2 2024. The company is following through on capital reduction and activity reduction plans in 2024. Comstock is still able to increase production despite reductions in activity.
Precision Drilling
U.S. activity for the company in Q2 2024 averaged 36 drilling rigs compared to 51 for the second quarter of 2023. In the Lower 48, the company remains focused on operating performance for their customers, while looking to improve field margins and cash flow generation. Today, the firm has 38 rigs operating and believes the long-term fundamentals for U.S. drilling are positive due to the next wave of Gulf Coast LNG facilities projected to start-up over the next three years and numerous large oil and gas M&A transactions nearing completion. Precision Drilling expects customer demand for rigs will remain stable in the third quarter with a likely increase in the fourth quarter as producers modestly increase drilling plans into 2025.
Ovintiv
Like the great majority of US producers, Ovintiv continues to produce more with either less or constant activity. The company’s Q2 2024 NG production was above the high end of their guidance range. Ovintiv increased their 2024 full year production guidance while keeping capital expenditures unchanged. Ovintiv’s well type curves continue to be in line with expectations of strong well performance in 2024. The company remains on track to complete more than 50% of their wells in 2024 using the trimulfacing completion methodology.