Feedback
European Shorting
My Portfolios
Browse Gurus
Print
Email
Clayton Williams Energy is an independent oil and gas company engaged in the exploration for and development and production of oil and natural gas primarily in Texas Louisiana and New Mexico. A significant portion of the company's proved oil and gas reserves are concentrated in the Cretaceous Trend which extends from south Texas through east Texas Louisiana and other southern states and includes the Austin Chalk Buda and Georgetown formations. Clayton Williams Energy Inc. has a market cap of $338.7 million; its shares were traded at around $27.88 with and P/S ratio of 0.5. Clayton Williams Energy Inc. had an annual average earning growth of 15% over the past 10 years. Highlight of Business Operations: During the second quarter of 2009, operating margins on oil-prone properties improved somewhat due to a combination of higher oil prices and lower rates for field services caused by decreased demand for those services. Since most of our developmental drilling locations are oil-prone, we have elected to resume drilling developmental oil wells in the Permian Basin and the Austin Chalk (Trend) during the remainder of 2009. As a result, we now plan to spend approximately $131.1 million on exploration and development activities in fiscal 2009, an increase of $17.3 million over our previous estimate. By comparison, we spent $372.7 million in fiscal 2008 on exploration and development activities.
Due to recent improvements in operating margins attributable to higher oil prices and lower costs for field services, we elected to resume drilling developmental oil wells in the Permian Basin and the Austin Chalk (Trend) during the second quarter of 2009. Approximately 46% of the $89.9 million spent on exploration and development activities during the first nine months of 2009 was applicable to developmental prospects. We currently plan to spend approximately $131.1 million on exploration and development activities during fiscal 2009, of which approximately 60% is expected to be spent on developmental drilling. We may increase or decrease our planned activities, depending upon drilling results, operating margins, the availability of capital resources, and other factors affecting the economic viability of such activities.
We spent $32.7 million in the Permian Basin during the first nine months of 2009 on drilling and completion activities and $1.2 million was spent on seismic and leasing activities. We drilled 23 gross (21.68 net) operated wells in the Permian Basin and conducted various remedial operations on other wells in 2009. In response to recent improvements in operating margins, we began a drilling program in Andrews County targeting the Wolfcamp/Spraberry formations and currently have three of our drilling rigs employed in this program. We currently plan to spend approximately $62.3 million on drilling and completion activities in the Permian Basin in fiscal 2009.
We spent $24.5 million in South Louisiana during the first nine months of 2009 on exploration and development activities, of which $22 million was spent on drilling and completion activities and $2.5 million was spent on seismic and leasing activities. We currently plan to spend $25.4 million for fiscal 2009, of which $22.3 million relates to drilling and completion activities and the remaining $3.1 million relates to seismic and leasing activities.
To date, we have drilled 18 wells on our Terryville prospect and have completed 16 wells as producers. On our Ruston prospect, we have completed four wells as producers. We spent $4.4 million in North Louisiana during the first nine months of 2009 on exploration and development activities, of which $3.9 million was spent on drilling and completion activities and $500,000 was spent on seismic and leasing activities. We currently plan to spend $5.1 million for fiscal 2009 in this area.
We spent $15 million in the East Texas Bossier area during the first nine months of 2009 on exploration and development activities, of which $6 million was spent on drilling and completion activities and $9 million was spent on seismic and leasing activities. We currently plan to spend approximately $15.4 million for fiscal 2009, of which $6.2 million relates to drilling and completion activities and the remaining $9.2 million relates to seismic and leasing activities.
Read the The complete Report
Subscribe RSS
RSS