Report: Midland Basin depletes inventory of DUC wells from two months to one

Calgary-based Enverus Intelligence Research said last week operators entered 2025 with fewer DUC (drilled but uncompleted) wells than a year earlier to create “potential for impacts to capital efficiency throughout the year.”  Mark Chapman, principal analyst, said, “DUCs act as a form of inventory, and when market conditions are favorable – such as higher winter gas prices – companies can quickly complete these wells to boost production and capitalize on the higher prices, providing a tailwind early in 2025.”

Enverus said DUCs provide operators with strategic flexibility, financial benefits and operational efficiency – making them a crucial aspect of the industry’s dynamics.  The number of DUC wells in the past year fell faster than the decline in drilling rigs, indicating that the backlog of DUC wells is declining.  In its report of Feb. 12, Enverus added, “The Midland Basin depleted its inventory of excess DUCs the most over the past year, falling from two months to one.”