Major shale completion company shows strong Q2 results

By Luke Geiver | August 01, 2017

Keane Group Inc., one of the largest pure-play well completion service providers in the U.S., has reported strong results for the second quarter when compared to the previous quarter. At $323.1 million, Keane increased its revenue from well completion services performed in Texas and Pennsylvania by 35 percent when compared to Q1.

“The robust activity experienced at the start of the year accelerated in the second quarter,” said James Stewart, CEO of Keane. Although Keane expects activity levels to continue at the current pace, the company is constantly communicating with its clients on their plans and moods based on market conditions and commodity prices.

“Today, plans from our customers remain unchanged, however, we estimate that even a moderate rig count decline still supports a constructive balance of supply and demand for completion servicers,” the company told investors.

During the first portion of the year, demand for hydraulic fracturing exceeded the available supply, and, according to the company, those market conditions have not changed. Adding to the favorable market conditions for pressure pumping horsepower and other fracking services is the reality that current frack jobs require better equipment quality and volumes. Such a scenario requires more maintenance of fleets, which in turn causes some horsepower to be removed from the available service pool due to maintenance. Keane also believes that some service providers over promised the availability of services during the prior cycle of low oil prices.

In 2017, Keane has found that bundling completion services with wireline services has been a popular move. Of the company’s 18.3 average deployed fleets during the second quarter, 64 percent were bundled with wireline, which was an increase to its first quarter total which was 58 percent. “Bundling remains a key differentiator for Keane and a major source of efficiencies on the job site,” said Greg Powell, president and CFO of Keane.

In the next quarter, Keane believes revenue will increase by a range of 45 percent to 60 percent, mainly due to the activation of its recently acquired set of completion fleets previously operated under the RockPile Energy Services banner.