Small-horsepower compression has been a bright spot in CSI Compressco LP’s operations.
Interim President Brady Murphy said strong customer interest in its Gas-Assisted Plunger Lift application has quadrupled the deployment of CSI’s small GasJack units since the beginning of the year. GasJacks are about 9% of the company’s fleet
“This new application was developed specifically for later-life conventional wells that are typically producing below 100 barrels of oil per day, where large-horsepower compression systems failed to achieve the desired lift efficiency in horizontal wells that will not support rod lift. “Recent case studies have highlighted our success in increasing oil and liquids production by as much as five to ten times, resulting in multiple orders by customers in the Permian and SCOOP/STACK basins,” Brady said.
CSI hasn’t neglected large-horsepower either. So far this year, it has added 101,000 hp (75 MW), all with equipment larger than 1000 hp (0.75 MW). During the third quarter its operating service fleet grew 14,300 hp (10.6 MW) to 1.16 million hp (865 MW). Utilization was 90%.
The Woodlands, Tex.-based limited partnership posted a loss of US$3.6 million for the third quarter, compared to a loss of US$2.9 million for the previous quarter and a loss of US$7.9 million for the third period of 2018. Adjusted earnings before interest, taxes, depreciation and amortization were $34 million, up from US$32.7 million in the second quarter and US$26.5 million a year ago.
“While overall drilling and completion spending will likely decline in the coming quarters, oil and gas production is projected to further increase in 2020, which drives demand for our equipment and services,” Murphy said.