Thursday, July 27, 2017

The Energy And Market Page, T+188 -- Earnings Calls -- Statoil, CalFrac -- July 27, 2017

HESM: Hess Midstream MPL -- I believe this is a new issue; 27.03 cents payable August 14, 2017; record date, August 4, 2017; ex-div, August 2, 2017. See disclaimer.

The usual disclaimer.

Fracking in the Bakken, from CalFrac's 2Q17 earnings conference call:
  • added two frack spreads in Colorado
  • larger jobs in the Marcellus and the Bakken
  • smaller jobs in Colorado
  • had to put on hold plans to frack in Texas
  • would like to have all frack teams reconstituted by end of year; not likely to happpen, partly due to workforce; 300,000 people left the industry in the downturn
Operating in the Bakken, from Statoil's 2Q17 earning conference call:
  • decreased CAPEX possible because --
  • efficiency gains
  • rigs drill 6% to 9% more meters / day
  • 4% to 2% less time on each well
  • 35% less cost per well
  • strict prioritization
  • added a second completion crew in July
  • production onshore is reduced y-o-y; but increased q-o-q, mainly Bakken
  • Kayak discovery, relatively small but could impact decision on Castberg later this year
  • improving cash margins toward the target of $12.50 per bbl in 2018
  • three most prolific basins in the US: Eagle Ford, Bakken, Marcellus (note which basin was not mentioned)
  • slightly higher activity level planned for 2H17 in the Utica and the Bakken
  • 900 wells with a breakeven of $50 and below; half of those 900 have a breakeven of $40 or below 
Curious. After setting record highs for quite some time now, how many individual issues are still touching new highs? On the NYSE:
  • new highs: 141 -- including Boeing, Coke
  • new lows: 21 -- including QEP, Snap, Sonoco Products
Maybe tax reform is not needed?

Another record: Dow 30, closing above 21,700 yesterday, closed just shy of 21,800 today. Wow!

Catalyst: A Feline Analyst?

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