Blackeagle Energy predicts uptick in D-J Basin production in early 2017

BERTHOUD — Blackeagle Energy Services, a Berthoud-based manufacturer of well-site piping and other metal equipment used in gas and oilfield operations, said Monday it is experiencing an uptick in orders for the first quarter of 2017 from energy companies working in the Denver-Julesburg Basin, which includes Northern Colorado.

Blackeagle released a statement Monday that one leading producer placed an order for $1.2 million, which was half of its total order costs in the first three quarters of 2016. Blackeagle said the producer indicated that if prices hold up, the order could double next year.

A barrel of oil was trading between $52 and $55 mid-day Monday. Late last month, the Organization of the Petroleum Exporting Countries, or OPEC, agreed to cut production to drive prices up.

Another provider placed an order for $2.4 million for delivery in the first three quarters of 2017.

One nationally recognized producer placed an order with Blackeagle for well-site piping to be delivered to Colorado and Wyoming project sites in 2017 — this producer had not ordered product from Blackeagle since 2015.

“These are great indicators that oil and gas companies are looking to expand capital purchases next year in this region,” the company said the statement.

Noble Energy Inc. (NYSE: NBL) and Anadarko Petroleum Corp. (NYSE: APC), two big players in the D-J Basin, have issued public statements that they plan to spend more money in this area. Other producers are spending as much — or more — in the D-J Basin, while cutting budgets elsewhere, according to Blackeagle.

Noble said last month that in the D-J Basin, it expects total sales volumes to grow 11 percent to 16 percent.

Anadarko recently said it has changed from a waiting-for-conditions-to-change outlook of a quarter ago to aggressive growth, anticipating a 16.5 percent growth in onshore production over the next five years.

Blackeagle employs more than 400 people across 17 states including 60 people at its fabrication plant in Berthoud. Its headquarters is in Berthoud, and it has major field offices in Texas, Oklahoma, Nebraska and Ohio.
Editor’s note: Updated Dec. 29, 2016 to include number of employees companywide.

 

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