Investor Presentaiton
TMK Driving Increasing Unconventional Horizontal Drilling ...
Horizontal and directional drilling represents 94% of
all US drilling activity in 2018
According to Spears & Associates estimates, 2018
U.S. drilling and completion spending will be 26%
above 2017 and increase by 9% YoY in 2019E
Growing number of available productive benches
means that for any drilled well there is the potential
for additional drilling activity further down the line
U.S. active rig count by type of drilling
% as of year end
100
32
31
75
27
27
50
56
58
63
25
45
33
17
13
11
7
6
22
22
99
65
73
33
79
81
86
87
13
11
10
13
10
9
9
0
T
2010 2011 2012 2013 2014 2015 2016 2017
9M
2018
Potential for additional drilling activity:
Permian basin (Delaware sub-basin) example
Avalon
1st Bone Spring
2nd Bone Spring
2010
3rd Bone Spring
Up Wolfcamp A
Lw Wolfcamp A
Wolfcamp B
Wolfcamp C
Number of
benches
increased
250%
Source: Spears & Associates, Drilling Production Report as of September 2018
22
22
2017
U.S. D&C spending ($bn)
Source: Baker Hughes
■ Directional
Horizontal
■ Vertical
U.S. drilling and completion spending
$225
$180
$135
$90
$45
$0
Source: Spears & Associates
2019E
2020E
2021E
2022E
2023E
2024E
2025EView entire presentation