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US Rig Count Outlook

Posted on January 6, 2010

While total domestic rig count is down about 40% year-over-year, a recent analyst report puts this into context: rig counts are about 44% below the peak experienced during September 2008 but are about 30% off the bottom, experienced during June 2009. More specifically, when looking at just the domestic natural gas count, which has been roughly cut in half since its peak in September 2008, it has only rebounded about 10% from its lows.

This indicates that domestic natural gas rigs are being put back to work at a slower pace, however, producers continue to drill in an attempt to hold leased acreage positions. As such, the rig count is expected to sequentially improve into 2010. In a recent report, published by Wall Street Transcript, rig count estimates exiting 2010 stand at around 1450, with the natural gas rig count exiting 2010 around 1050.

The Oil & Gas Production and Distribution Report, published by the Wall Street Transcript offers a review of this sector. The 76-page feature contains industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers.

Topics covered: Master Limited Partnerships - MLPs v. The Broader Market - Canadian Pipeline - Natural Gas Growth - The Integrated Gas Space - Rebound in MLP Prices - Appeal for Long-Term Investors - Natural Gas-Fueled Transportation - Decrease in Marginal Cost of Production. The full issue is available by calling 212-952-7433 or via the link provided below.

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