American Oil and Gas Reporter - July 2020 - 71

but a lot depends on how long prices
stay down."
And although prices in the mid-$30s
fall well short of where they began the
year, Armstrong Energy seems to stand
as a prime example of the United States'
exceptionally nimble independents, who,
production figures show, shut in great
volumes of production in a relative eyeblink when prices cratered, and then
were able to cut on a dime and bring
some of those wells back when the
balance sheet warranted.
"Not wanting to give away reserves,
we shut in quite a bit of production," he
recounts. "We are a conventional operator, so our shut-in process has not been
terribly difficult. Sometimes, you look
at what sort of equipment is down hole.
If you have a submersible pump, you
may have to pickle it or pull it completely, but our type of production has
been relatively easy to curtail. As prices
have recovered, it also has been fairly
easy to bring things back on line. Being
a low-cost operator, a lot of our wells
still have decent margins at $35 a barrel.
Horizontal production obviously faces
a very different challenge in this price
point. Those companies need significantly higher prices in order to achieve
a return on investment while still replacing reserves."
Even so, he acknowledges, balance
sheets still require plenty of wells to
remain idle. "I anticipate stripper production will be uneconomic for some
time," he predicts. "We also are being hit
with a pretty broad spread in terms of
WTI and our deductions. Natural gas
prices have been an issue in the Permian
to the point where it essentially has
become a waste byproduct that drains
revenue to get it taken away."
Nevertheless, he emphasizes, although
the Permian's previous decade was impressive, that rebirth followed a long history that included alternating periods of
thriving and surviving. "Having been
through so many downturns, people in
the Permian have learned to be resilient
and innovative," he considers. "Companies
that already have been through downturns
know how to manage them, but there is a
lot of hardship that workers are facing
while companies try to maintain positive
balance sheets."
Many New Mexico independents have
been able to keep their payrolls intact
by utilizing federal programs such as
the Paycheck Protection Plan, for which
Congress allocated significant funding
this spring, Armstrong reports. "Certainly,
we hope that has had a positive impact
on employee retention by helping highly
leveraged companies maintain their pay-

rolls," he says. "That has been a good
program for companies that have seen
their revenue slashed 50%-90%. We
hope it has allowed them to maintain
operations when they otherwise could
not."
Prolonged Presidency
According to Winchester, IPANM is
listening carefully to its members' input
about the best way to proceed with association events in the pandemic period.
Although IPANM decided in April to
postpone the annual meeting it had planned
to hold July 22-24 in Albuquerque, it remains conscious of the benefit members
derive from gathering.
"Member surveys show how important
it is for them to network, have conversations about what is going on, and
share information and ideas," he describes. "That means we are going to go
forward with some sort of day conference-probably in late August or early
September-that will be part board meeting, part general meeting session, and
then a golf outing and networking opportunity. Later, we also are looking at
other basin-specific activities."
Armstrong acknowledges that the
convention's postponement has prolonged
his presidency, but he is scheduled to
pass the gavel to IPANM Northwest
Vice President Ryan Davis with Marion
Oil & Gas in Farmington, N.M., whenever
the Board of Directors next meets. "Ryan
has been a tremendous leader and voice
for IPANM and the industry," Armstrong
praises. "He has led IPANM's efforts
on the state's Methane Advisory Panel
and has been tireless in advocating for
the industry."
"I am looking forward to Ryan's presidency," Winchester affirms. "He has a
very strong technical aptitude and has
been highly involved in a lot of the stakeholder process groups during the last few
years. He definitely will bring that expertise to the presidency."
As for Armstrong's term in office,
Winchester points out that no IPANM
president ever has had a tenure quite
like it. "What a roller coaster of a year
to be president, and what a whirlwind of
differences from the first part of his term
until now," Winchester marvels. "Kyle
has been an amazing industry advocate.
He has incredible networking skills and
contacts within state government that
have benefitted us so much in this environment. I greatly appreciate what he
has done and the leadership he has shown.
He certainly has demonstrated his commitment to independent producers, and
I have nothing but profound gratitude
for his efforts."
r

Oilfield Improvements®
WHEELED ROD GUIDE®
COUPLINGS
For Deviated,
Directional and
Horizontal Wells
Used Successfully for Over
27 Years by Over 90% of
Major Oil & Gas Companies
in Over 40 Countries -
Onshore and Offshore
Wheels are
Field-replaceable

Call
800-537-9327
or Your Oilfield
Supply Store
www.rodguides.com
®

1902 N. Yellowood Ave.
Broken Arrow, Oklahoma 74012 U.S.A.
PHO 918-250-5584 * FAX 918-250-4666

Oilfield Improvements®
ULTRA-FLOW®
FIELD-INSTALLED

CENTRALIZERS/
PARAFFIN SCRAPERS

Full-circle Wiping
of Tubing I.D.
More Gripping
Force on Sucker Rods
More Fluid Flow-by
Volume
Longer Useful LIfe
from Longer Vanes
& Bearing Surfaces
Positive Wear
Indicators
Amodel with Glass Fill
CALL 1-800-LES WEAR
(800-537-9327) OR YOUR
Oilfield Supply Store

www.rodguides.com
®

1902 N. Yellowood Ave.
Broken Arrow, Oklahoma 74012 U.S.A.

JULY 2020 71


http://www.rodguides.com http://www.rodguides.com

American Oil and Gas Reporter - July 2020

Table of Contents for the Digital Edition of American Oil and Gas Reporter - July 2020

American Oil and Gas Reporter - July 2020 - Intro
American Oil and Gas Reporter - July 2020 - 1
American Oil and Gas Reporter - July 2020 - 2
American Oil and Gas Reporter - July 2020 - 3
American Oil and Gas Reporter - July 2020 - 4
American Oil and Gas Reporter - July 2020 - 5
American Oil and Gas Reporter - July 2020 - 6
American Oil and Gas Reporter - July 2020 - 7
American Oil and Gas Reporter - July 2020 - 8
American Oil and Gas Reporter - July 2020 - 9
American Oil and Gas Reporter - July 2020 - 10
American Oil and Gas Reporter - July 2020 - 11
American Oil and Gas Reporter - July 2020 - 12
American Oil and Gas Reporter - July 2020 - 13
American Oil and Gas Reporter - July 2020 - 14
American Oil and Gas Reporter - July 2020 - 15
American Oil and Gas Reporter - July 2020 - 16
American Oil and Gas Reporter - July 2020 - 17
American Oil and Gas Reporter - July 2020 - 18
American Oil and Gas Reporter - July 2020 - 19
American Oil and Gas Reporter - July 2020 - 20
American Oil and Gas Reporter - July 2020 - 21
American Oil and Gas Reporter - July 2020 - 22
American Oil and Gas Reporter - July 2020 - 23
American Oil and Gas Reporter - July 2020 - 24
American Oil and Gas Reporter - July 2020 - 25
American Oil and Gas Reporter - July 2020 - 26
American Oil and Gas Reporter - July 2020 - 27
American Oil and Gas Reporter - July 2020 - 28
American Oil and Gas Reporter - July 2020 - 29
American Oil and Gas Reporter - July 2020 - 30
American Oil and Gas Reporter - July 2020 - 31
American Oil and Gas Reporter - July 2020 - 32
American Oil and Gas Reporter - July 2020 - 33
American Oil and Gas Reporter - July 2020 - 34
American Oil and Gas Reporter - July 2020 - 35
American Oil and Gas Reporter - July 2020 - 36
American Oil and Gas Reporter - July 2020 - 37
American Oil and Gas Reporter - July 2020 - 38
American Oil and Gas Reporter - July 2020 - 39
American Oil and Gas Reporter - July 2020 - 40
American Oil and Gas Reporter - July 2020 - 41
American Oil and Gas Reporter - July 2020 - 42
American Oil and Gas Reporter - July 2020 - 43
American Oil and Gas Reporter - July 2020 - 44
American Oil and Gas Reporter - July 2020 - 45
American Oil and Gas Reporter - July 2020 - 46
American Oil and Gas Reporter - July 2020 - 47
American Oil and Gas Reporter - July 2020 - 48
American Oil and Gas Reporter - July 2020 - 49
American Oil and Gas Reporter - July 2020 - 50
American Oil and Gas Reporter - July 2020 - 51
American Oil and Gas Reporter - July 2020 - 52
American Oil and Gas Reporter - July 2020 - 53
American Oil and Gas Reporter - July 2020 - 54
American Oil and Gas Reporter - July 2020 - 55
American Oil and Gas Reporter - July 2020 - 56
American Oil and Gas Reporter - July 2020 - 57
American Oil and Gas Reporter - July 2020 - 58
American Oil and Gas Reporter - July 2020 - 59
American Oil and Gas Reporter - July 2020 - 60
American Oil and Gas Reporter - July 2020 - 61
American Oil and Gas Reporter - July 2020 - 62
American Oil and Gas Reporter - July 2020 - 63
American Oil and Gas Reporter - July 2020 - 64
American Oil and Gas Reporter - July 2020 - 65
American Oil and Gas Reporter - July 2020 - 66
American Oil and Gas Reporter - July 2020 - 67
American Oil and Gas Reporter - July 2020 - 68
American Oil and Gas Reporter - July 2020 - 69
American Oil and Gas Reporter - July 2020 - 70
American Oil and Gas Reporter - July 2020 - 71
American Oil and Gas Reporter - July 2020 - 72
American Oil and Gas Reporter - July 2020 - 73
American Oil and Gas Reporter - July 2020 - 74
American Oil and Gas Reporter - July 2020 - 75
American Oil and Gas Reporter - July 2020 - 76
American Oil and Gas Reporter - July 2020 - 77
American Oil and Gas Reporter - July 2020 - 78
American Oil and Gas Reporter - July 2020 - 79
American Oil and Gas Reporter - July 2020 - 80
American Oil and Gas Reporter - July 2020 - 81
American Oil and Gas Reporter - July 2020 - 82
American Oil and Gas Reporter - July 2020 - 83
American Oil and Gas Reporter - July 2020 - 84
https://www.nxtbook.com/nxtbooks/aogr/202104
https://www.nxtbook.com/nxtbooks/aogr/202103
https://www.nxtbook.com/nxtbooks/aogr/202102
https://www.nxtbook.com/nxtbooks/aogr/202101
https://www.nxtbook.com/nxtbooks/aogr/202012
https://www.nxtbook.com/nxtbooks/aogr/202011
https://www.nxtbook.com/nxtbooks/aogr/202010
https://www.nxtbook.com/nxtbooks/aogr/202009
https://www.nxtbook.com/nxtbooks/aogr/202008
https://www.nxtbook.com/nxtbooks/aogr/202007
https://www.nxtbook.com/nxtbooks/aogr/202006
https://www.nxtbook.com/nxtbooks/aogr/202005
https://www.nxtbook.com/nxtbooks/aogr/202004
https://www.nxtbook.com/nxtbooks/aogr/202003
https://www.nxtbook.com/nxtbooks/aogr/202002
https://www.nxtbook.com/nxtbooks/aogr/202001
https://www.nxtbook.com/nxtbooks/aogr/201912
https://www.nxtbook.com/nxtbooks/aogr/201911
https://www.nxtbook.com/nxtbooks/aogr/201910
https://www.nxtbook.com/nxtbooks/aogr/201909
https://www.nxtbook.com/nxtbooks/aogr/201908
https://www.nxtbook.com/nxtbooks/aogr/201907
https://www.nxtbook.com/nxtbooks/aogr/201906
https://www.nxtbook.com/nxtbooks/aogr/201905
https://www.nxtbook.com/nxtbooks/aogr/201904
https://www.nxtbook.com/nxtbooks/aogr/201903
https://www.nxtbook.com/nxtbooks/aogr/201902
https://www.nxtbook.com/nxtbooks/aogr/201901
https://www.nxtbook.com/nxtbooks/aogr/201812
https://www.nxtbook.com/nxtbooks/aogr/201811
https://www.nxtbook.com/nxtbooks/aogr/201810
https://www.nxtbook.com/nxtbooks/aogr/pbios_201810
https://www.nxtbook.com/nxtbooks/aogr/201809
https://www.nxtbook.com/nxtbooks/aogr/201808
https://www.nxtbook.com/nxtbooks/aogr/201807
https://www.nxtbook.com/nxtbooks/aogr/201806
https://www.nxtbook.com/nxtbooks/aogr/201805
https://www.nxtbook.com/nxtbooks/aogr/201804
https://www.nxtbook.com/nxtbooks/aogr/201803
https://www.nxtbook.com/nxtbooks/aogr/201802
https://www.nxtbook.com/nxtbooks/aogr/201801
https://www.nxtbook.com/nxtbooks/aogr/201712
https://www.nxtbook.com/nxtbooks/aogr/201711
https://www.nxtbook.com/nxtbooks/aogr/201710
https://www.nxtbook.com/nxtbooks/aogr/201709
https://www.nxtbook.com/nxtbooks/aogr/201708
https://www.nxtbook.com/nxtbooks/aogr/201707
https://www.nxtbook.com/nxtbooks/aogr/201706
https://www.nxtbook.com/nxtbooks/aogr/201705
https://www.nxtbook.com/nxtbooks/aogr/201704
https://www.nxtbook.com/nxtbooks/aogr/201703
https://www.nxtbook.com/nxtbooks/aogr/201702
https://www.nxtbook.com/nxtbooks/aogr/201701
https://www.nxtbook.com/nxtbooks/aogr/201612
https://www.nxtbook.com/nxtbooks/aogr/201611
https://www.nxtbook.com/nxtbooks/aogr/201610
https://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
https://www.nxtbook.com/nxtbooks/aogr/201609
https://www.nxtbook.com/nxtbooks/aogr/201608
https://www.nxtbook.com/nxtbooks/aogr/201607
https://www.nxtbook.com/nxtbooks/aogr/201606
https://www.nxtbook.com/nxtbooks/aogr/201605
https://www.nxtbook.com/nxtbooks/aogr/201604
https://www.nxtbook.com/nxtbooks/aogr/201603
https://www.nxtbook.com/nxtbooks/aogr/201602
https://www.nxtbook.com/nxtbooks/aogr/201601
https://www.nxtbook.com/nxtbooks/aogr/201512
https://www.nxtbook.com/nxtbooks/aogr/201511
https://www.nxtbook.com/nxtbooks/aogr/201510
https://www.nxtbook.com/nxtbooks/aogr/201509
https://www.nxtbook.com/nxtbooks/aogr/201508
https://www.nxtbook.com/nxtbooks/aogr/201507
https://www.nxtbook.com/nxtbooks/aogr/201506
https://www.nxtbook.com/nxtbooks/aogr/201505
https://www.nxtbook.com/nxtbooks/aogr/201504
https://www.nxtbook.com/nxtbooks/aogr/201503
https://www.nxtbook.com/nxtbooks/aogr/201502
https://www.nxtbook.com/nxtbooks/aogr/201501
https://www.nxtbook.com/nxtbooks/aogr/201412
https://www.nxtbook.com/nxtbooks/aogr/201411
https://www.nxtbook.com/nxtbooks/aogr/201410
https://www.nxtbook.com/nxtbooks/aogr/201409
https://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
https://www.nxtbook.com/nxtbooks/aogr/201408
https://www.nxtbook.com/nxtbooks/aogr/201407
https://www.nxtbook.com/nxtbooks/aogr/201406
https://www.nxtbook.com/nxtbooks/aogr/201405
https://www.nxtbook.com/nxtbooks/aogr/201404
https://www.nxtbook.com/nxtbooks/aogr/201403
https://www.nxtbook.com/nxtbooks/aogr/201402
https://www.nxtbook.com/nxtbooks/aogr/201401
https://www.nxtbook.com/nxtbooks/aogr/201312
https://www.nxtbook.com/nxtbooks/aogr/201311
https://www.nxtbook.com/nxtbooks/aogr/201310
https://www.nxtbook.com/nxtbooks/aogr/201309
https://www.nxtbook.com/nxtbooks/aogr/201308
https://www.nxtbook.com/nxtbooks/aogr/201307
https://www.nxtbook.com/nxtbooks/aogr/201306
https://www.nxtbook.com/nxtbooks/aogr/201305
https://www.nxtbook.com/nxtbooks/aogr/201304
https://www.nxtbook.com/nxtbooks/aogr/201303
https://www.nxtbook.com/nxtbooks/aogr/201302
https://www.nxtbook.com/nxtbooks/aogr/201301
https://www.nxtbook.com/nxtbooks/aogr/201212
https://www.nxtbook.com/nxtbooks/aogr/201211
https://www.nxtbook.com/nxtbooks/aogr/201210
https://www.nxtbook.com/nxtbooks/aogr/201209
https://www.nxtbook.com/nxtbooks/aogr/2012_pbios
https://www.nxtbook.com/nxtbooks/aogr/201208
https://www.nxtbook.com/nxtbooks/aogr/201207
https://www.nxtbook.com/nxtbooks/aogr/201206
https://www.nxtbook.com/nxtbooks/aogr/201205
https://www.nxtbook.com/nxtbooks/aogr/201204
https://www.nxtbook.com/nxtbooks/aogr/201203
https://www.nxtbook.com/nxtbooks/aogr/201202
https://www.nxtbook.com/nxtbooks/aogr/201201
https://www.nxtbook.com/nxtbooks/demo/aogr_clone
https://www.nxtbook.com/nxtbooks/aogr/201112
https://www.nxtbookmedia.com