STAGES Update: 8/6/2021

STAGES update for the first week of August:

STAGES Pumped

The frac crew count fell again by 4 down to 235.

STAGES Created

The horizontal rig count continued to increase this week with New Mexico (Permian) and Wyoming (DJ & Other) each adding 2 rigs.

STAGES Ratio

The STAGES Ratio was fell again this week to 53%. The 6 month moving average remained the same at 54%. This is the first time this year that the STAGES Ratio has fallen below the moving average.

STAGES News

This is the first time this year that the STAGES Ratio has fallen below the moving average. If we add today’s STAGES ratio to our historical graph, it could indicate an inflection point in the market.

The last time this happened was in Q4, 2019 when the rig count and crew count started to drop. This was also the case in Q3, 2018, the STAGES ratio crossed the moving average and it signaled the height of the Rig and Crew counts. Though, back in Q1, 2017 the Ratio dropped below the average as the rig count accelerated faster than the crew count.

During 2021 operators have been focused on delivering their DUC (drilled/uncompleted) inventory. There has been speculation that the DUCs are dropping. This inflection point could indicate we are reaching an equilibrium between the STAGES pumped & created. We will continue to monitor these numbers through the STAGEs updates.