Permian Expansion Update

10-Oct-2019

By: Kevin Biringer

The Permian Expansion 2019 initiative is ensuring we are equipped with facilities, service lines and people to capitalize on the growth in the Permian Basin. The three main projects we are focusing on are Delaware expansion, production services growth and recruiting and retention. 

Delaware Expansion

Last year we identified that the Delaware Basin was going to be the main growth region of the Permian in 2019. We have secured three new core customers active in the Delaware Basin: XTO, Salt Creek Midstream and Texas Land and Pacific. In 2019 we have added over 100 positions working in that region between these three customers.

Production Services Growth

We established this initiative early in the year to be strategic about targeting new customers in the Permian Basin, and we also looked at expanding our production division into adjacent service markets (flowback crews, automation techs, etc). As you can see from graph below we have seen significant growth with some new customers such as Shell, Pioneer and Texas Land and Pacific.

 

In many parts of the Permian there can be up to 10 barrels of water produced for every 1 barrel of oil. This has led to a huge market around transporting and disposing of produced water. Texas Land and Pacific is one of those companies in the water infrastructure business, and we currently have over 60 employees working for them. This has opened a door into a new market expected to be very active over the next several years.

Recruiting and Retention Strategy

With a major labor shortage still affecting the Permian, having dependable and competent personnel is most critical for success. We have implemented the results from the employee survey we conducted earlier in the year to refine our recruiting strategy. Understanding that our current employees are our best recruiters, we’re establishing a formal referral bonus program to be rolled out soon.  

Above: An aerial shot of the new Midland office. 

Kevin Biringer

Kevin Biringer is the General Manager for Shale Production Services. He joined Danos full-time in 2014 after a summer internship with Danos in 2013. Prior to joining Danos, Kevin was a project engineer for the ExxonMobil Development Company.  

 


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