EOG continues to set new production records in the Permian. Its Rattlesnake 4 well pad produces over 2.1 million barrels of crude on a 12-month model. The Rattlesnake provides possible upside from other operators in the area.

Enhanced completions continue to improve production per foot in all US plays. These improvements have been seen in the Bakken as well. The driving season may be an opportunity to add several Bakken core players.

The Permian continues to show significant improvements in well costs. We expect this to continue, and if oil prices rise it could mean a relatively large improvement.

The number of operators willing to sell acreage in the Permian is decreasing. While this inherently increases the costs of acquisitions, it will also increase valuations of current acreage holders.

There is little acreage to acquire with value in the Permian. Some will reach and pay top dollar as NBL recently did in its acquisition of CWEI. There are some private names with significant footprints, which could be targets of CVX, XOM, and COP.

OXY is a key player in the Permian. It is using a much better well design in New Mexico than southern Reeves. We expect that newer designs will lower breakevens without increasing well costs.

FANG continues to impress in the Midland core. Its recent acquisition in the Delaware is a risky one, with little development to date. This could provide significant upside, as a couple of big wells could increase acreage valuations significantly.

As we continue to look into the southern Delaware Basin, we find a great variability in operator results. While some names underperform, Concho is making its mark. If other operators follow in its footsteps, breakevens will head lower.

Noble is just one in a string of Delaware Basin acquisitions. Although some believe it paid too much, we think valuations are heading higher in 2017.

Diamondback has excellent acreage in the Midland Basin and has added some very good acreage in the Delaware. Although this article focuses on Midland well results, the upside to multiple intervals in Pecos County could be significant.

Enhanced well designs continue to improve production per foot throughout the US. We like CLR based on its production improvements, large STACK/SCOOP footprint, and possibility of decreased North Dakota differentials with DAPL completion.

OPEC's recent cut of 1.2 million bpd was just the start. Non-OPEC producers followed with a commitment of 558,000 bpd after the meeting convened Saturday. This was the first cooperation since 2001. It should be positive for oil prices in 2017.

The evaluation of EOG's sand heavy frac design continues to outperform the competition by a wide margin. Although this is very bullish for EOG, it should be seen as a bar set for the entire industry.

Sale Ranch is the jewel of Pioneer's inventory. Well results have been fantastic and continue to improve.

Oil prices may head higher into the November 30th OPEC meeting in Vienna. Oil inventories in the US continue to decline, adding to this bullish stance.

The OPEC understanding may have put off a major drop in oil prices until November. Libya, Nigeria and Iran all could increase production up to that meeting, and if a deal is not done, we could retest 52-week lows.