Tuesday, May 1, 2012

Investors Only -- CLR, SM Energy, GMXR Reports -- After Market Close; Also MRO; And, EPD, Before Market Open

See disclaimer.

CLR: link here -- daily production up 66% year-over-year; adjusted earnings 76 cents vs 53 cents y-o-y if I read the table correctly; I'm sure analysts will sort it out.  Daily production averaged 85,500 bopd vs 52,000 bopd (rounded).

SM: link here --
SM Energy reported net income for the first quarter of 2012 of $26.3 million or $0.39 per diluted share. This compares to a net loss of $(18.5) million, or $(0.29) per diluted share, for the same period of 2011. Adjusted net income for the first quarter of 2012 was $32.8 million, or $0.48 per diluted share, compared to adjusted net income of $28.1 million, or $0.42 per diluted share, for the same period of 2011.
From Yahoo!InPlay: SM Energy misses by $0.05, misses on revs: Reports Q1 (Mar) earnings of $0.48 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.53; revenues rose 19.7% year/year to $377.4 mln vs the $395.72 mln consensus. In 2012, co sees production of 220-227 and in Q2 sees 50-54 BCFE. (Q1 BCFE was 50.7 vs 48.5-52.0 company consensus).
EPD: beats expectation --
Net income rose to $656 million, or 73 cents per unit, from $435 million, or 49 cents per unit, a year earlier.

Revenue rose 11 percent to $11.3 billion.

Enterprise shares have gained nearly 20 percent of their value in the last year.

Devon: production climbs; profit dips

Parker Drilling:
For the 2012 first quarter that include net income of $26.4 million, or $0.22 per diluted share, on revenues of $176.6 million, compared with 2011 first quarter net income of $4.8 million, or $0.04 per diluted share, on revenues of $156.2 million.
MRO: significant decrease in earnings
First-quarter profit fell to $417 million, or 59 cents a share, from $996 million, or $1.39 a share, in the year-ago period prior to the spin-off of its refining unit. Adjusted profit fell to 67 cents a share, from 88 cents a share.
GMXR misses by 1 cents (no link, Yahoo!InPlay):
GMX Resources misses by $0.01, beats on revs: Reports Q1 (Mar) loss of $0.20 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of ($0.19); revenues fell 40.8% year/year to $17.4 mln vs the $15.55 mln consensus.

For Investors Only: CVX

April 13, 2019: CVX makes offer for Anadarko: here; and, here.

July 3, 2013: CVX moves 400 employees from its HQ in San Ramon (CA) to Houston; building a new building in Houston; says they are keeping HQ in San Ramon (CA). Sure. 

June 17, 2013: CVX to sell $6 billion in bonds; one of the largest deals this year; largest deal for CVX since at least 1995.

May 29, 2013: highlights of CVX 2013 Annual Stockholder Meeting.

January 28, 2013: ex-judge says he was bribed by the Equadorians who are suing CVX. I think I've heard this before.

October 10, 2012: share price of CVX is taking a real hit today after CVX said it's 2Q12 earnings would be significantly lower due to Hurricane/Tropical Storm Isaac. More concerning to me was the refusal of the US Supreme Court to rule in favor of CVX vs Ecuador. I assume these things will take care of themselves over time but it's hard to say. If one is optimistic about the company, this provides another entry point for CVX. It goes ex-dividend around November 15, and will be paying a nice dividend. It has increased its dividend in both May, 2012, and November, 2011. If the company does not have plans for its cash horde, and feels comfortable despite the US Supreme Court ruling, it's very possible CVX could reward its shareholders for sticking with them during this minor setback in production goals. Smile. Perhaps wishful thinking. [Note the disclaimer for this site: it is not an investment site; make no investment decisions on what you read here.]

October 7, 2012: strong dividend growth should continue. Link to a SeekingAlpha.com article.
CVX had about $253.7 billion in revenue in 2011, up 24% from 2010. However this growth is not projected to continue into 2012 and 2013 when analysts target about $252 billion and $262 billion respectively. CVX has a market capitalization of $230.6 billion and an enterprise value of $219.3 billion, shows almost no debt. CVX has about $10.2 billion in debt, but over $21 billion in cash and equivalents. CVX has a strong track record of paying dividends. For 2011, its payout ratio to net income was 23% and its payout to operating cash flow was 15%. While CVX primarily returns capital to shareholders through dividends, CVX did repurchase over $3 billion of shares in 2011, up substantially from the two previous years.
September 11, 2012: Cash horde. The article mentioned only Hess and CHK as possible takeover candidates. I doubt either.
Having checked the balance sheet of its bigger competitor Exxon Mobil, I could plainly see that Chevron has more cash on hand. This could be seen by the end of 2011, when Chevron had increased the cash carried on the balance sheet by nearly 13 percent over the previous year.

As of June 30, Chevron was sitting on a $21.46 billion war chest in total cash and had a staggering $10.65 billion in levered free cash flow (trailing 12 months). In comparison, Exxon Mobil had $17.8 billion in total cash and $15.58 billion in levered free cash flow (trailing 12 months). 
As recently as Aug. 28, The Wall Street Journal, in a story titled “Chevron Cash Fuels Deal Talk,” reported the investment community has been buzzing about what Chevron is planning to do with all that cash. “Even if Chevron used the money to retire its debt,” the Journal mused, “it would still have about $11 billion left over.” 
May 1, 2012, link here -- SeekingAlpha.com.
The company's earnings per share rose (from $3.09 to $3.27) as have the total earnings, from $6.2 to $6.5 billion (1Q12).
These earnings fell short of analysts' expectations of $3.31 per share. The main reason for the setback is the decreased production of oil from 2.76 million barrels a day to 2.63 million barrels of oil per day, but we think the setback is temporary. 
Chevron is also raising its yield (up by 11% to 90 cents a share). These excellent gains are definitely a cause for excitement, but should be closely watched until the company is able to boost its oil production. 
May 1, 2012, link here -- Motley Fool.com.
With earnings season essentially having been relegated to history for the major oil companies, it's difficult not to be impressed by the scope and direction of Chevron, the second-largest of the U.S.-based integrated companies, and Royal Dutch Shell, its Anglo-Dutch peer.  
In an overall evaluation of all the companies, including their relative approaches to their businesses and their geographic concentrations, one is likely to find the California-based company about as compelling as is Shell. 
Disclaimer: this is not an investment site; this is not a recommendation to buy, sell, or hold any shares mentioned in these articles.

I am placing this here for future reference.

Ten (10) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, May 1, 2012 --

Operators: Denbury (3), Whiting (2), Hess (2), CLR (2), Petro-Harvester

Fields: Battleview (Williams), Robinson Lake (Mountrail), Charlson (McKenzie), Renville (Bottineau), Bell (Stark), East Fork (Williams)

Permit canceled:
  • 21175, PNC, Whiting, Rodney Olson Federal 42-8TFH, Mountrail
Fifteen wells released from "tight hole" status:
  • 19882, 1,197, Zavanna, Bruce 5-8 1H, Crazy Man Creek, Bakken; t1/12; cum 59K 3/12;
  • 19964, 592, EOG, Hardscrabble 4-3427H, Sixmile, Bakken, t11/11; cum 48K 3/12;
  • 20429, 337, XTO, Leslie 42X-13, wildcat, t2/12; cum 2,634 3/12;
  • 20432, 282, EOG, Sidonia 41-2017H, t11/11; cum 38K 3/12;
  • 20781, DRL, ERF, Pine 148-94 12D-01-3H, McGregory Buttes, Bakken,
  • 20851, 782, ERF, Forge 148-94 11B-3H, McGregory Buttes, Bakken; t1/12; 38K 3/12;
  • 20857, 358 (1,312 according to the sundry form), KOG, Pankowski 4-6H, Truax, Three Forks; t2/12; cum 11K 3/12; 23 stages; 1 million lbs proppant; ("ten stages this frac"on sundry form; I do not know what that meant)
  • 20954, 208, Petro-Hunt, Setterlund 159-94-28B-33-1H, North Tioga, Bakken, t2/12; cum 6K 3/12;
  • 21261, 94, Oasis, Clark 5602 12-13H, Tyrone, Lodgepole Formation -- not a Bakken;
  • 21499, DRL, BEXP, Dominek 13-24 1H, Todd, 25K in 1.5 months; going to be a nice well;
  • 21576, 454, Hunt, Halliday 2-12-1H 1, Wolf Bay, t3/12; cum 31K 3/12;
  • 21593, DRL, Hess, SC-Jean 157-99-0904H-1, wildcat,
  • 21594, 702, Zenergy, Paulson 13-14H, Assiniboine, Bakken, t12/11; cum 21K 3/12
  • 21679, 42, CLR, Running 1-4H, Wildcat, Bakken,
  • 90179, Salt water disposal, SBG Grassy Butte LLC
One producing well completed:
  • 20841, 2,005, BR, Taylor 31-1H, Bully field, Bakken, t12/11; cum 13K 3/12;
Another well name change suggesting new target:
  • 22586, BEXP, Bratcher 10-3 4H (was Bratch...4TFH)

Liberty Resources: Water Injection -- Two Wells

Earlier today I transcribed 35 wells that Liberty Resources acquired recently. I didn't think they would do anything with these wells, that they had just acquired these wells in the process of acquiring Bakken acreage, but in fact it looks like they are going to see how much life these old wells still have:

These two wells were on the daily activity report today, converted to water injection:
  • 10881, 200, Liberty Resources, G. A. Meyers 1, t12/84; Madison, sporadic production; Glass Bluff; 
  • 10923, 74, Liberty Resources, Lassey-Lindsley 1, t10/84; Madison, Duperow (DRY), Birdbear (DRY); minimal production since 2010; Glass Bluff

Absolutely Nothing To Do With The Bakken: USS North Dakota

A new Virginia-class nuclear submarine, the USS North Dakota.
Former North Dakota senator Byron Dorgan led the effort for the Navy to name a new USS North Dakota. According to a news release that his office issued in 2009, Dorgan invited Sen. Kent Conrad, D-N.D., now former representative Earl Pomeroy and other distinguished North Dakotans to form the USS North Dakota Committee. Former Secretary of State Warren Christopher, who was born in Scranton, was convinced to be honorary chairman. In July 2008, the effort paid off.
The state of North Dakota will miss Senator Byron Dorgan.  But my hunch is that our current reps (Senators and Representative) will also serve the state well.

SSN-784 is the first of eight submarines in Block III of the program.

Chesapeake Earnings 1Q12


May 1, 2012: CHK plummets.
Shares of Chesapeake Energy Corp. are down 12 percent because of disappointing earnings and a new report of potential conflicts of interests involving its CEO.

Reuters says Aubrey McClendon ran a private hedge fund for at least four years that traded in contracts for oil and natural gas — commodities that Chesapeake produces. The report suggests the hedge fund could have influenced McClendon's running of Chesapeake.
The report does not mention that according to an earlier conference call additional assets would be sold. I don't know if the asset selling is complete.

Original Post

  • earnings: 18 cents vs 29 cents
  • revenue: 2.4 vs 2.75 billion

Filloon Provides Nice GEOI Look-Back

Link here to SeekingAlpha.com.
Tom Ward CEO of Sandridge (SD) believes we will see $4 natural gas in the next 12 months, but it is possible we may have to wait later into 2013. Bakken crude pricing should also continue to improve as take away capacity begins to improve. Right now differentials are high and in the $12 to $15/barrel range. I think this number will pull back below $10 by the second half of this year, and stabilizing around $7 next year. Differential improvements will help many of the Bakken players (more for the smaller names) over the next couple of years.
Mike is hitting on all cylinders: folks noted that the WTI/Bakken spread narrowed today. 

Rufus Is Back: Links To Reason Why WTI/Bakken Spread Narrows

Rufus is back: provides link to Bloomberg's reason why WTI/Bakken spread narrowed.
The discount for Bakken oil narrowed to the smallest margin since December before work on an Alberta upgrader that will reduce output of Canadian synthetic crudes.

Syncrude Canada Ltd. plans to start work on the 8-3 coker at its upgrader near Fort McMurray, Alberta, by May 4, ... 60 days of work planned on the coker in the second quarter hasn’t started yet.
And speaking of Rufus over at Teegue's Bakken Shale Discussion Group:

Honey sweet: this is barbecue sauce, not rum. 
Rufus Teague Barbecue Sauce

Liberty Resources Acquires Operator Status of 35 Wells -- The Williston Basin, North Dakota, USA -- May 1, 2012


December 18, 2016: picked up as part of acquisition of Bakken acreage. With few exceptions, the company put any producing wells on the AB list. Data updated below except for the bottom few wells after the trend was noted. Tagged for follow-up in December, 2021.
Original Post
All of these are in McKenzie County, except for one, #11827, but all are in Glass Bluff field.
Pool and last few months oil production:
  • 9403, dry, Madison, 0, 0, 83 (12 days); 509 (30 days), Glass Bluff,
  • 9755, *AB/232, Madison, 87 (14 days), 0, 111 (13 days), 165 (15 days), Glass Bluff, t12/82; cum 113K 4/15;
  • 9891, PNA/148, Madison, PNA, Glass Bluff, t3/83; cum 51K 7/12;
  • 9998, *AB/318, Madison, 154 (4 days); 49 (1 day); 0; 17 (1 day); Glass Bluff, t8/83; cum 321K 9/15;
  • 9999, TA/82, Madison, TA, Glass Bluff, t5/83; cum 63K 7/12;
  • 10064, dry/39, Madison, Dry, Glass Bluff, t8/84; cum 14K 7/12;
  • 10103, TA/32, Madison, TA, Glass Bluff, t1/85; cum 13K 7/12;
  • 10193, TA/92, Madison, SI, Glass Bluff, t8/83; cum 70K 7/12;
  • 10295, *AB/148, Madison, 0, 0, 0, last produced in 2008, Glass Bluff, t8/83; cum 190K 11/14;
  • 10439, 206, Madison, 31 (6 days); 0, 0, 0, Glass Bluff, t2/84; cum 252K 10/16; off-line 7/16 - 10/16;
  • 10440, *AB/143, Madison, last produced 2008/2009; Glass Bluff, t2/84; cum 78K 6/14;
  • 10536, *AB/112, Madison, 0, 0, 0, 40 (4 days), Glass Bluff, t2/84; cum 190K 3/14;
  • 10566, 131, Madison, 17 (31 days); 98 (28 days); 54 (17 days); 92 (17 days; Glass Bluff, t5/84; cum 85K 10/16;
  • 10661, 1,204, Madison, 316 (19 days); 0, 622 (30 days); 632 (31 days); Glass Bluff, t5/84; cum 487K 10/16;
  • 10714, *AB/196, Madison, no production since 2006; Glass Bluff; t11/84; cum 88K 2/15;
  • 10715, AB/91, Madison, water injected; no production since 2001; Glass Bluff; t5/84; cum 68K 7/12;
  • 10872, AB/173, Madison, no production since 2010; Glass Bluff, t6/84; cum 87K 7/12;
  • 10878, A/106, Madison, no production since 2009; Glass Bluff,
  • 10879, A/73, Madison, water injected; no production since 2004; Glass Bluff,
  • 10880, A/184, Madison, TA, Glass Bluff,
  • 10881, A/200, Madison, sporadic production; Glass Bluff;
  • 10899, 375, Madison, 250 bbls/month; Glass Bluff; t7/84; cum 204K 10/16;
  • 10900, PNA/200, Madison, Glass Bluff,
  • 10921, A/277, Madison, no production since 2003; Glass Bluff;
  • 10922, A/104, Madison, no production since 2010; Glass Bluff;
  • 10923, A/74, Madison, Duperow (DRY), Birdbear (DRY); minimal production since 2010; Glass Bluff
  • 10942, *AB/231, Madison, 0, 101 (5 days), 0, 197 (23 days); Glass Bluff, t7/84; cum350K 10/13
  • 10950, *AB/82, Madison, no production since early 2011; Glass Bluff, t8/84; cum 85K  8/13;
  • 11078, *AB/92, Madison, 330 (28 days), 0, 17 (1 day), 267 (12 days); Glass Bluff; t12/84;  cum 165K 4/14;
  • 11143, 91, Madison, 100 (31 days), 125 (28 days), 54 (17 days), 92 (17 days); Glass Bluff, t1/85; cum 93K 10/16;
  • 11144, *AB/131, Madison, 151 (31 days), 294, (28 days), 211 (30 days), 52 (24 days); Glass Bluff, t1/85; cum 179K 7/14;
  • 11145, TA, Madison, Glass Bluff,
  • 11146, *AB/100, Madison, minimal production since 2007; Glass Bluff, t2/85; cum 108K 9/14;
  • 11157, *IA/241, Madison, Glass Bluff, t3/85; cum 122K 10/15;
  • 11177, *A/60, Madison, minimal production since 1010; Glass Bluff, t4/85; cum 86K 10/16; after being off-line for years, first production 10/16 in a long time
  • 11299, 219, Madison, sporadic production since early 2011; Glass Bluff, t5/85; cum 222K 10/16;
  • 11300, 169, Madison, 150 (31 days), 302 (28 days), 211 (30 days), 52 (24 days); Glass Bluff,
  • 11339, 68, Madison 100 (31 days), 117 (28 days), 54 (17 days); Glass Bluff,
  • 11340, 229, Madison, 94 (29 days), 369 (28 days), 15 (30 days); Glass Bluff,
  • 11355, 297, Madison, minimal production since late 2011; Glass Bluff,
  • 11364, Madison, SI, Glass Bluff,
  • 11393, Madison, TA, Glass Bluff,
  • 11408, Madison, minimal production since 2010, Glass Bluff,
  • 11452, Madison, minimal production since 2007, Glass Bluff,
  • 11458, Madison, 80 (10 days), 85 (16 days), 237 (19 days); Glass Bluff,
  • 11499, Madison, no production last five months; Glass Bluff,
  • 11694, Madison, sporadic production; Glass Bluff,
  • 11731, Madison, minimal production since 2008; Glass Bluff,
  • 11732, Madison, minimal production since 2010; Glass Bluff,
  • 11827, Madison, minimal production; Glass Bluff,
To me, this simply looks like wells picked up when Liberty Resources bought acreage in the Bakken.

Tagged for follow-up December, 2012.

Incumbents: Good, Bad, or Indifferent -- Thank Goodness Krugman Is Not Fed Chairman or Sec Treasury

Paul K. needs to visit the Bakken. And his neighborhood gas station, and his local supermarket. He needs to get out once in awhile.

Link here: the takeaway according to a snippet is that there is no inflation in the minds of these folks -- they obviously don't buy gasoline and they obviously don't shop at the supermarket.

Grand Forks Looking to Encourage Bakken Companies

Link here.
The City Council is expected to vote next week on a proposal to spend $75,000 in city sales tax dollars on the effort.

The city's Bakken Initiative — named for the geologic formation that is churning out oil and drawing companies and workers from across the nation — also calls for another $50,000 to be raised from private and other sources for the public relations campaign to convince oil companies to set up shop in Grand Forks. The money would be used for such things as a video, mailings, and to send Grand Forks officials to an oil conference in Bismarck in late May.

"These companies can expand into Montana or Canada," Gershman said. "We want to keep them in North Dakota."

Fiber-Optic To Extend Into Oil Patch -- $3 Million Program -- Midcontinent Communications

Link here.
Officials for North Dakota and the Sioux Falls, S.D.-based company on Monday unveiled the $3 million plan to extend the multi-state Northern Plains Network from Minot to Williston. The project will be privately funded, said company president and CEO Pat McAdaragh.

``The Bakken Extension means western North Dakota will have access to greatly expanded data capacity, faster speeds and world-class telecommunications services,'' McAdaragh said.
One more positive from the boom. Again, not trivial.

Delta Airlines Buying East Coast Refinery Changes Everything -- TransCanada Looking East

Huge story.
TransCanada Corp. is advancing pipeline plans to move growing volumes of crude from Alberta to the U.S. Gulf Coast just as it considers linking western Canadian production to new markets in Eastern Canada.

That could mean switching one or more pipes on the five-pipe, roughly 14,000-kilometre mainline that stretches from Alberta to Quebec over to oil — either 30- or 40-inch pipes — to deliver between 300,000 barrels per day and 800,000 barrels per day, Girling said.

“We have a lot of work to do, technically, we have a lot of work to do with our shippers, but at that 30,000-foot level, it seems to make sense to people,” Girling said. “We’re going to actively pursue it and see if we can understand it and turn it into an opportunity for both the oil and gas industry and TransCanada.”
Sent in to me by a reader. A huge thank you.

More comments on this story if I get time later.

Crude-By-Rail Oil Loading Sites in North Dakota

July 25, 2016: CBR -- an end of an era. The Wall Street Journal.

March 21, 2016: general update on CBR in North Dakota.

March 18, 2016: Red River Oilfield Services, a mile or so east of Williston on state highway 1804 announces completion of Unit Train Project; sand, proppant, oil, cement, gravel truck/train on-loading/off-loading terminal. 

September 21, 2015: new CBR loading facility about ready to open, Palermo, ND.

November 21, 2014: update on the PSX CBR terminal and the Sacajawea pipeline.

October 6, 2014: update on the proposed PSX CBR terminal

September 18, 2014: Powers Lake?

September 4, 2014: PSX to build new CBR terminal in the Bakken. To the best of my knowledge this is separate from the Plaza terminal just announced.

August 26, 2014: new CBR terminal proposed; this one would be at Plaza, ND, about 10 miles east of Parshall, ND At 70,000 in 14 hours, could load one unit train/day. Storage at 300,000 bbls and increasing to 600,000 bbls in Phase 2.

August 12, 2013: Calumet acquires seven CBR terminals and related facilities from Murphy Oil in the Bakken oil patch. 

June 28, 2013: Bakken crude-by-rail capacity jumps by 50% with addition of two more terminals; almost 500,000 bopd capacity; could reach 700,000 bopd by end of year. 

May 31, 2013: Kinder Morgan cancels plans for that $2-billion-pipeline to California

May 24, 2013: rail leaving Kinder-Morgan $2 billion pipeline to west coast in the lurch.

May 23, 2013: RBN Energy on tank cars

May 21, 2013: feature story on Enbridge-Canopy joint venture to Philadelphia.
The common ground that Canopy and Enbridge discovered materialized into a JV called Eddystone Rail Co., which Enbridge formally announced Nov. 26 of last year. Enbridge owns a 75-percent stake in the JV, with Canopy holding the remaining interest.
May 15, 2013: Enbridge could shut 80,000 bopd Berthold CBR terminal

May 13, 2013: a new CBR terminal -- Cenex, CHS transport, Boyle, Stark.

May 13, 2013: RBN update on 154 CBR terminals.

March 20, 2013: Berthold Oil Terminal -- unit train can be loaded by pipeline in less than 14 hours; 8 unit trains/week; 80,000 bbls/unit train

January 19, 2013: an article in the Minneapolis Star-Tribune says there are 20 crude oil rail loading terminals in North Dakota but without supporting documentation. [Update: Looking at the map from the ND Pipeline Authority provided by RBN Energy -- nd-rail-facilities-jan-29-2013.pdf -- there are 20 crude oil rail loading terminals. March 10, 2013.]

December 6, 2012: Plains All American Pipeline to buy three oil-loading rail terminals across the US: Bakken, Eagle Ford, Niobrara.
The assets to be acquired include three crude oil rail loading terminals located in the Eagle Ford, Bakken and Niobrara producing regions with an aggregate daily loading capacity of approximately 85,000 barrels per day, a rail unloading terminal at St. James, Louisiana with capacity of approximately 140,000 barrels per day and a project to construct a crude oil unloading terminal near Bakersfield, California.
November 20, 2012: RBN Energy provides a list of all rail routes leading out of the Bakken.

November 13, 2012: BNSF presentation, a PDF file; coolest site of the week.

October 8, 2012: RBN Energy, Part II, unit tank trains.

September 18, 2012: RBN Energy, Part I, unit tank trains -- NGLs on the rail.

September 14 2012: CBR and FSBR facilities continue to come on line

August 14, 2012: Tesoro will increase CBR from 30,000 to 50,000 bopd to its west cost refinery.

August 3, 2012: Berthold Farmers Elevator, west of Minot; will double revenues for the elevator; 

June 19, 2012: very nice update; a must read.  Currently: 470,000 bopd by rail -- capacity; at the link the spokesman said there have been 17 rail/oil terminals built since 2008; my list below show 15 -- not bad for picking up information from mainstream media

May 14, 2012: compare the "readers' list" below with the RBN Energy list posted this morning

Tank Cars

From RBN, September 18, 2012, see link above:
As of June 2012, there were just over 1.5MM revenue generating (locomotives, maintenance equipment, end of train/cabooses not included) rail cars in North America. Tank cars make up about 300,000 of the railcar fleet - 75,000 of them high pressure tanks designed to carry hazardous gases shipped under pressure (liquefied). The latter have thicker tank walls and better valves and fittings and most have special features to improve crashworthiness.

It takes a high pressure rail car to move propane, normal butane and isobutane. These NGL products, generally referred to as LPGs (liquefied petroleum gasses) have high vapor pressures and must be transported in vessels that can withstand that pressure. Y-grade (mixed NGLs containing ethane) can be carried in high pressure cars provided that the ethane content is minimal. The ethane in the mix must be low enough not to trigger inadvertent hydrocarbon releases and/or damage the tank car). Ethane has a vapor pressure well above the threshold for even high pressure tank cars.
The DOT common specifications for high pressure tank cars mean they have a capacity range of 17,000 to 33,500 gallons (404-797 Bbl) and a weight limit of 263,000 lbs.
Original Post 
[The list may be updated.]

A reader is looking for a list of all crude-by-rail oil-loading facilities in the Bakken.

I will need help from readers telling me where the CBR oil-loading facilities are. [Later: be sure to read the comments, especially the one about following these facilities on Google satellite view (May 1, 2012); several folks have sent in some nice comments regarding these oil loading rail facilities.]

This will be linked at the sidebar at the right, under the "Top Ten" list. The list will be "crude" at first (no pun intended) and as "we" go along, the list will be cleaned up. Eventually, perhaps location, capacity, operator, comments, links.

CBR sites, the "readers list":

118-Tank Car Unit Train: A Big "Thank You" to the President for Killing the Keystone XL; Killing the XL Will Give These Unit Trains a Few Extra Years of Life

WTI Solidly Green In Early Trading -- Albeit Not By Much


Later, 11:30 am: WTI up $1.41 right now; no explantion?  This is the Goldilocks "sweeter" spot.

Original Post

I see WTI has turned positive, up about 20 cents.

At the moment, "we're" in the Goldilocks sweet spot.

Marathon Petroleum Beats by 37 Cents; Could Transfer Assets to MLP

Reports 1Q12 earnings of $1.70 per share, $0.37 better than the Capital IQ Consensus Estimate of $1.33; revenues rose 13.5% year/year to $20.27 bln vs the $17.68 bln consensus.
Hmmm. Beats by 37 cents. Impressive. 

Also, this: Marathon Petroleum may shed some assets for a master limited partnership:
Marathon Petroleum provides update to midstream strategic alternatives evaluation process: board has authorized evaluation team to further explore the formation and IPO of an MLP and to prepare a registration statement: Co announced that board of directors has authorized and directed its evaluation team to further explore the formation and initial public offering of a master limited partnership (MLP) and to prepare a registration statement. If MPC determines to further pursue an initial public offering of an MLP, the issuer would be a wholly-owned subsidiary, MPLX LP. MPC would contribute a portion of its midstream assets to the MLP and sell a minority interest in the MLP in an initial public offering. The potential MLP would support MPC's strategy to grow its midstream business, initially through a contribution of an interest in certain onshore common carrier pipeline assets located in the Midwest and Gulf Coast regions of the U.S.
See disclaimer. This is not an investment site; no buy, hold, sell recommendation. I am simply posting items that interest me and generally (but not always) relate to the Bakken. Good luck to all.

Frack First, Disclose Later

Link here.
Natural-gas companies drilling on U.S. land would be permitted to wait until after hydraulic fracturing is completed to disclose what chemicals they used, under a draft rule being considered by the U.S. Interior Department.

A version in February required companies to file a complete chemical makeup at least 30 days before work began, something energy trade groups, including Washington-based American Exploration and Production Council, complained about. They said it could slow energy production on federal lands.

Dakota Plains Holding, Inc -- The Bakken, North Dakota, USA

Another crude-by-rail oil transporting company. Website here. Thank you to Charley for sending me the note.

Primary location: New Town, ND --
In 2009, Dakota Plains completed its initial acquisition and build out of its New Town, North Dakota transloading facility. In 2011 we doubled the size of our facility and brought the on-site tank car capacity to 160. The facility, which is fully operational, is connected to Canadian Pacific's Class 1 Railway. This means of transportation to end-markets reflects Dakota Plains' and the industry's expectation that Williston Basin crude oil production will continue to grow for many years.

New Town, ND is centrally located in the rapidly growing North Dakota Bakken oil play, named the largest on-shore oil deposit in the United States by the United States Geological Society.

For Investors Only: COP Plummets 22% -- Drops $15 in Pre-Market Trading

Oh, that's right. Today, COP spins off Phillips 66, PSX.


One share of PSX for every two shares of COP.
To effect the spinoff, ConocoPhillips stockholders received one share of Phillips 66 common stock for every two shares of ConocoPhillips common stock held on the record date of April 16, 2012. Phillips 66 is now an independent, publicly traded company in which ConocoPhillips retains no ownership interest. 
PSX debuting.

Back of envelope, end-of-day:
Yesterday, 100 shares COP --> $7,200

Today: 100 shares COP --> $5,651
Today: 50 shares PSX --> $1,638
Today: Total: $7,289
COP is up; PSX was down, and down more in after-market; folks are using this opportunity to sell their PSX and most likely using that cash to buy more COP.

Do you ever wonder about the retail investors?

RBN Energy: Primer on Gas-to Liquids

Link here.
Sasol Ltd. announced in September 2011 that they have selected a site in southwest Louisiana as a possible location for a multibillion-dollar plant that converts natural gas to diesel and other products. The company will conduct an 18-month feasibility study that weighs the regulatory process, “supply issues,” capital costs and other factors before it decides whether to proceed. If the Sasol plant proceeds as planned, construction is expected to start in 2013, and the complex would be built in two phases that upon completion in 2018 would process approximately 4 million tons of products per year, with a maximum capacity of 96,000 barrels per day.
In early April 2012 the Wall Street Journal reported that Royal Dutch Shell PLC is also considering building a giant plant in Louisiana to convert natural gas to diesel. The plant, which could cost more than $10 billion, would be similar in size to Shell's Pearl gas-to-liquids facility in Qatar. The Pearl GTL plant is the world’s largest and made its first commercial shipment in June 2011. The Pearl plant is expected to reach full capacity in 2012 – converting 1.6 BCF a day of natural gas into 140,000 barrels of petroleum products (primarily naphtha). 
The article at the link shows the chemistry and the economics.

Delta Airlines to Buy COP Refinery; Eventually Bakken Oil to the Refinery

On CNBC this a.m.

Data points from Delta CEO:

  • Delta Airlines to buy COP refinery outside Philadelphia for $150 million
  • State subsidizes to tune of $30 million
  • 3-year contract with BP to provide oil
  • Eventually Bakken to provide oil for the refinery