Reeves County continues to have one of the lowest breakeven oil prices in the US. There is upside to Reeves' producers as the play is relatively new. Operators are well positioned even with lower for longer oil prices.

We have received three consecutive weekly bullish drawdowns in EIA inventories. Although this is positive in the short term, there is little to show that supply and demand are close. We expect the glut to persist in the upcoming months.

Breakeven oil prices are one of the most important data points for E&Ps. Reeves County has one of the lowest in the unconventional US. Investment in operators with acreage here could provide an advantage in a lower for longer oil price environment.

The Delaware Basin continues to be one of top US unconventional plays. Because of its low breakeven prices, we think it will continue to increase production while other plays decline.

The Delaware Basin continues to be one of the hottest oil plays in the US. Acquisitions continue as does de-risking of acreage. Low breakevens, a very thick pay zone and excellent well results will continue to drive production growth in this basin.

The Delaware is located in the western Permian. It has seen less capital to develop the Wolfcamp and Bone Spring than the Midland Basin to the east. It may have more upside as it will see more de-risking over the next 12 months.

The Delaware Basin has significant upside if oil prices recover. It is currently profitable today, and has lower breakevens than most areas in the US. Since we are still somewhat early there is still significant derisking to occur.

The frac sand industry continues to benefit from newer well designs. Mega-Fracs continue to be the direction the market is headed to. We continue to believe frac jobs will require more sand.

The STACK play in Oklahoma is one of the top oil unconventional plays in the US. It will continue to have an advantage, as well performance improves and cost continue lower.

Delaware Basin operators saw some impressive earnings announcements so far this season. This is due to lower well costs and improved well production.

Unconventional producers continue to improve stimulation techniques while decreasing costs. Operators will continue to push down breakeven prices in an attempt to be competitive on a global scale.

The breakeven price of oil for unconventional US operators continues to head lower. Although economics are not as good as in Saudi Arabia, decreasing costs and improved production due to enhanced completions have made many core US plays viable.

Estimates for breakeven in US unconventional plays are heading lower. Operators have not only decreased costs, but increased production. As it gets more competitive, we can expect breakeven prices to go even lower.

The Baker Hughes Rig report used to be invaluable in predicting US oil production. This has changed through horizontal production, as it is now much more difficult to use rig numbers to predict the flow of US crude.

Marked improvements in well design plus high grading have been very effective in producing more resources per foot. Lower rig and completion numbers have not caused a rollover in U.S. oil production.

The STACK in Oklahoma is becoming the top US unconventional oil play. Although traffic has not been as good, well economics are similar if not better than core locations in the Permian. This is positive for operators like CLR, NFX, XEC, and DVN.