Wednesday, November 22, 2017

Public Service Announcement -- November 22, 2017

If you are having trouble connecting through Verizon, you are not alone. The "Verizon down-detector" is picking up a lot of reports that the system is down.

Update, November 23, 2017, 8:34 a.m. Central Time: Verizon was "okay" overnight but is starting to show problems again this morning. It looks like Spectrum is in even worse shape. ATT outage looks a lot like Verizon's. 

The Lougheed Wells

The Lougheed wells have been completed:
  • 31980, 2,137, Equinor/Statoil, Lougheed 2-11 XE 1TFH, Todd, t6/17; cum 97K 8/19;
  • 31979, 2,830, Equinor/Statoil, Lougheed 2-11 5H, Todd, t6/17; cum 191K 8/19;
  • 31978, 2,008, Equinor/Statoil, Lougheed 2-11 5H, Todd, t7/17; cum 124K 8/19;
  • 31977, 2,279, Equinor/Statoil, Lougheed 2-11 3H, Todd, t7/17; cum 252K 8/19;
  • 31976, PNC,
  • 31975, PNC,
  • 31974, 2,578, Equinor/Statoil, Lougheed 2-11 7H, Todd, t7/17; cum 243K 8/19;
  • 31972, 3,072, Equinor/Statoil, Lougheed 2-11 XW 1H, Todd, t7/17; cum 206K 8/19;
  • 31973, 1,613, Equinor/Statoil, Lougheed 2-11 8THF, Todd, t7/17; cum 152K 8/19;
  • 20282, 2,671, Equinor, Williston Airport 2-11 1H, Todd, t10/11; cum 354K 8/19;  was off line for almost two years, 10/15 - 10/17; a great well when it came back on line;
Todd oil field is tracked here but needs to be updated.

*********************************
Why I Love To Blog -- Notes To The Granddaughters

This note will make no sense to anyone but myself and one reader who sent me some interesting notes. It all began with this note.

My father is 95 years old, or thereabouts, in good health physically and mentally doing okay. He served in WWII in the US Navy on a troop ship.

From my notes:
Dad’s tally of his cruises during the war:
17 round trips to Liverpool, England
3 round trips to France, including one to Marseilles
2 round trips to Naples, Italy
6 trips in the Mediterranean
4 round trips across the Pacific, including China
In all, he completed 44 trips across the Atlantic, six across the Mediterranean, and four across the Pacific.
One of my dad's more memorable cruises took place in November 1945, when they picked up 5000 US Marines at New Port News, Virginia. From there they traveled to China through the Panama Canal. They refueled in Hawaii and arrived in China in February 1946. While in China they made port calls at Tensing and Sing Tau. They anchored off shore in the Yellow Sea, about 30 miles out because the Yellow Sea is a very shallow body of water. The US Marines and sailors were taken ashore in landing barges. After discharging the combatants-turned-occupation troops, the USS Wakefield picked up another 5000 US Marines destined for rest and reassignment. After about a month in San Diego they took the rested marines to Guam where battle-weary Marines there were picked up and brought back to San Diego. (Dad has a very good memory. The actual date of departure from Guam on March 13, 1946.)
After nearly four years at sea Dad was discharged. Honorably.
I never understood why the US Navy was transporting US Marines in and out of China after WWII had ended. I never bothered to do the research -- not knowing where to start. Then, out of the blue tonight, a reader sent me a note about this history of post-WWII conflict in China.

At least I now know where to start my search on this part of that history.

China Marine: Shanghai & Peking were once Corps' most desired duty 
 
China Marine: Shanghai & Peking were once Corps' most desired duty
 
China Marine: Shanghai & Peking were once Corps' most desired duty

Practically A New Well In 2017 After Being First Drilled In 2012 -- November 22, 2017

[Note: I track "similar" wells here.]

According to FracFocus this well has not been re-fracked but it's in the middle of seven or eight other wells that have been recently fracked. The well:
  • 18797, 1,743, XTO, TAT State Federal 14X-36F, Bear Creek, API: 33-025-01065, 24 stages; 2.7 million lbs, t3/12; cum 289K 9/17; 
Recent production profile:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN9-20172915468155122057618162180170
BAKKEN8-2017211641216460215922055120086319
BAKKEN7-20174324830133402345834040
BAKKEN6-20170000000

Prior to that, the well was inactive for almost two years. Production just prior to going inactive:

BAKKEN12-20150000000
BAKKEN11-20154139455483680107
BAKKEN10-20153134263502708364703358
BAKKEN9-2015284205392487745202284230
BAKKEN8-201518208722934921697975611
BAKKEN7-2015242457256059319811071762
BAKKEN6-2015222498231265522221121972
BAKKEN5-201520320530001097326917371413
BAKKEN4-20150000000
BAKKEN3-201539081058557350715
BAKKEN2-2015262144201900
BAKKEN1-201511473501900
BAKKEN12-2014117771818725223211
BAKKEN11-20143045294369102752874591416

For newbies: a lot of wells were shut in when the Saudi opened the taps from November, 2014, to November, 2016.

When OPEC decided to cut production in November, 2016, a lot of Bakken operators began fracking again.

Full production (through December, 2019):
Monthly Production Data
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-201931354636123685684867810
BAKKEN11-20193037763733358756355419145
BAKKEN10-2019303438340435634234834115
BAKKEN9-20192525822612250133219292372
BAKKEN8-201931392939203607527528352410
BAKKEN7-20193139553996351353614713629
BAKKEN6-20193037673795328847134123573
BAKKEN5-201931391438623736483848230
BAKKEN4-20193039313971459144494280152
BAKKEN3-20192940514088570338319432855
BAKKEN2-20192849314930510246696973897
BAKKEN1-20193137933663356136033289256
BAKKEN12-201825192319153398177017520
BAKKEN11-2018302394239037182018190099
BAKKEN10-201831270927103151266126400
BAKKEN9-20183028162833286527352379342
BAKKEN8-201824191319772263141314030
BAKKEN7-20181635133381269816951572117
BAKKEN6-201836766036279
BAKKEN5-20180020000
BAKKEN4-201858987066578
BAKKEN3-20180000000
BAKKEN2-2018224295012120
BAKKEN1-201826904790341102110534102990
BAKKEN12-20173111387112711407913709134990
BAKKEN11-20173012838130391618214823147020
BAKKEN10-20173117922177221951520457202610
BAKKEN9-20172915468155122057618162180170
BAKKEN8-2017211641216460215922055120086319
BAKKEN7-20174324830133402345834040
BAKKEN6-20170000000
BAKKEN5-20170000000
BAKKEN4-20170000000
BAKKEN3-20170000000
BAKKEN2-20170000000
BAKKEN1-20170000000
BAKKEN12-20160000000
BAKKEN11-20160000000
BAKKEN10-20160000000
BAKKEN9-20160000000
BAKKEN8-20160000000
BAKKEN7-20160000000
BAKKEN6-20160000000
BAKKEN5-20160000000
BAKKEN4-20160000000
BAKKEN3-20160000000
BAKKEN2-20160000000
BAKKEN1-20160000000
BAKKEN12-20150000000
BAKKEN11-20154139455483680107
BAKKEN10-20153134263502708364703358
BAKKEN9-2015284205392487745202284230
BAKKEN8-201518208722934921697975611
BAKKEN7-2015242457256059319811071762
BAKKEN6-20152224982312655259411211344
BAKKEN5-201520320530001097300817371152
BAKKEN4-20150000000
BAKKEN3-201539081058557350715
BAKKEN2-2015262144201900
BAKKEN1-201511473501900
BAKKEN12-2014117771818725223211
BAKKEN11-20143045294369102752874591416
BAKKEN10-2014203439376167840003170645
BAKKEN9-201430423940561018527839571136
BAKKEN8-201431453646771027592045921269
BAKKEN7-201431462044311082585445701222
BAKKEN6-201430457944741075595635262370
BAKKEN5-201431496951151182617338022309
BAKKEN4-20143050904914116065795712807
BAKKEN3-20143156145229140869826210710
BAKKEN2-20142545835329111768156268500
BAKKEN1-20143163306260161896668984620
BAKKEN12-20132354565170123262475783420
BAKKEN11-20133064586440162892968685555
BAKKEN10-2013317825788019481139110709620
BAKKEN9-20131549384741140251554882245
BAKKEN8-201330848582511935105699601908
BAKKEN7-2013314501459194348204588170
BAKKEN6-20133061346207131363525992300
BAKKEN5-20132863796531137768876036795
BAKKEN4-201330694268531513785564811314
BAKKEN3-20133178817768170775337161310
BAKKEN2-20132878457918174074647128280
BAKKEN1-20133157846075128654945137295
BAKKEN12-20123169446786154263416169110
BAKKEN11-201228743380041605669766410
BAKKEN10-201231803074771827741173490
BAKKEN9-201230897692542135862685660
BAKKEN8-201231107611078926051095210034856
BAKKEN7-201231121641194332521483573117462
BAKKEN6-2012301559815883394819193768311450
BAKKEN5-201226114081114333641382929913478
BAKKEN4-20123010627104863110127204412616
BAKKEN3-20123110738102861513113194013158

For Investors: Is This The Time To Get Back In? -- November 22, 2017

Updates

December 28, 2017: SandRidge calls off proposed merger with Bonanza Creek Energy.

Original Post 

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or think you may have read here. And for heaven's sake, if you are a US senator or congressmanperson, do not send me any nude selfies.

Carl says "no": SandRidge is not an operator in the Bakken but during the height of the onshore shale boom SandRidge popped up in the news often.

Now, this evening, I see that Carl Icahn has a 13.51% interest in SandRidge. This comes up because Carl has said he would vote against the company’s proposed acquisition of Bonanza Creek Energy Inc. See this post from last week.

I wonder if Carl can still boogie?

Yes, Sir, I Can Boogie, Baccara

Four New Permits; Four DUCS Completed -- November 22, 2017 -- Note WTI -- US Driving Records Will Be Broken; Keystone Pipeline Shut Down


$57.9811/22/201711/22/201611/22/201511/22/201411/22/2013
Active Rigs543665191184

Four new permits:
  • Operators: Nine Point Energy (2); Whiting (2)
  • Fields: Squires (Williams); Heart Butte (Dunn)
  • Comments:
Four producing wells (DUCs) reported as completed:
  • 28462, 1,894, Petro-Hunt, USA 153-96-24C-13-3H, Keene, t10/17; cum --
  • 33326, 1,814, MRO, Spring 21-15TFH, Bailey, t11/17; cum --  (#16964, #20321)
  • 33325, 5,072, MRO, Chapman 31-15H, Bailey, t10/17; cum -- (#16964, #20321)
  • 33324, 2,282, MRO, French 31-15TFH, Bailey, t10/17; cum -- (#16964, #20321) 
  • Comment: see update of #16964 at this link)
****************************
Price of Crude Oil

This is a strange time of the year to see the price of crude oil rising. Remember all that talk about $20 oil?

I thought everyone said fossil fuel was dead now that everyone is driving EVs. From John Kemp, Reuters oil analyst based in London who probably has as good an understanding of the US oil sector as anybody, just tweeted this earlier today: US refiners are pouring seasonal record amounts of crude into their cauldrons and still struggling to meet demand for gasoline and diesel.

It is being forecast that Americans will set a driving record going back a dozen years this Thanksgiving -- one wonders if the refiners a) saw this coming; and/or b) are still catching up from the two hurricanes this past summer. Regardless of the reason, it looks like US will set records for gasoline and diesel fuel for part of 2017 if not all of 2017.

That's the "demand" side for US refiners.

On the supply side:
  • Canadian heavy oil at risk due to the Keystone being shut down
  • Venezuela sources may be at risk due to  ... well,  you know
  • Saudi Arabia cutting deliveries to the US

TDS: Tesla Derangement Syndrome -- November 22, 2017

Updates

November 24, 2017: from Business Insider -- the Model 3 is putting Tesla in dangerous territory.
The Model 3, meanwhile, is a production disaster. And it is sort of unprecedented in the auto industry — in two ways. First, because Tesla has 500,000 pre-orders for the vehicle, something that's never happened before for any automaker. Second, because if any other automaker had half a million pre-orders for anything, it would be moving heaven and Earth to get those vehicles to market. There's nothing intrinsically exotic about the Model 3, either. It's a midsize sedan. Toyota could build a million next year without breaking a sweat.
Original Post 

As mentioned earlier, I suffer from TDS - Tesla Derangement Syndrome. I am simply fascinated by the company. 

From Investopedia, July 31, 2017, from an investor "long" on TSLA:

How did estimates compare to actual results? Actual results were posted at this link. It seems there are a number of different "numbers" provided for actual earning results: GAAP: non-GAAP: fantasy; the company numbers; and so on.

Ignoring 3Q16, there were only three quarters in which the forecast for the quarterly loss beat the actual number (and then, just barely). Perhaps worse, in 4Q15, analysts had forecast a small gain, but actual results were the worst up to that point on the graph above.


And then look at that: the "experts" suggested that the loss in 3Q17 would be less than that in 2Q17. In fact, the loss in 3Q17 came in a $3.70/share vs $2.04, the previous quarter. What is that? An 81% worse loss month-over-month and that was supposed to be when things started getting better.

And "the market" blew that off. TSLA shares just kept on appreciating.

Burning through $8,000/minute works out to:
  • $11.52 million / day
  • 345.6 million / month
  • $1.04 billion / quarter
Of course their automobiles are only part of their business, but --
  • 5,000 cars/month with a $10,000 profit margin on each car = 
  • $50 million / month
  • $150 million / quarter
If they get to 10,000 cars/month with a $10,000 profit margin on each car =
  • $100 million / month
  • $300 million / month
Plus $250,000 for the new roadster x 2,000 orders =
  • $500 million -- a one-time good deal
So, I was curious. It seems there's a bit of a gap between burning through $8,000/minute and anticipating an income of $300 million + $500 million. The EPS forecast in the graphs above was back in July, 2017.

What is the current EPS forecast for 4Q17 for Tesla. Here's the link; don't hold your breath: a loss of $3.75/share, much worse than the -$1.50 forecast in the graph above.

At that same link, Tesla's yearly earnings are forecast to be a minus $11.38 (for the year). So far,
  • 1Q16: -$1.25
  • 2Q17: -2.04
  • 3Q17: -3.70
  • Sub-total: -$6.99
Yearly forecast at the link: -$11.38.

The delta between $11.38 and $6.99 is $4.39 which is slightly different, but in the same ballpark as the estimate of a $3.75 loss for the December, 2017, numbers.

This continues to be a fascinating story to watch.

Disclaimer: the usual disclaimer applies. I often make simple arithmetic errors.

By the way, in this article, November 1, 2017, this comment by the writer, albeit in a link from one of his earlier posts:
With Model 3 anticipation high, Tesla is still selling record numbers of Model S and X. In Tesla’s just-released Q3 2017 earnings report, the company announced that in the same quarter that the much-antipated Model 3 was (soft-)launched, they’ve still managed to produce and deliver record numbers of the Model S and X. This is despite Tesla’s recent focus on “anti-selling” the Model 3, for fear that the upcoming product will negatively affect current S/X sales.
Fact check:

Total number of Model X and Model S sold/delivered in the following months:
  • June: 2,200 + 2,350 = 4,550
  • July: 1,650 +1,425 = 3,075
  • August: 1,575 +2,150 = 3,725
  • September: 3,210 +4,860 = 8,070
  • October (most recent data): 850 +1,210 = 2,060
Only if one averages September and October sales (5,065) does one get "record number of sales on a monthly basis.

I can only assume October was an anomaly, and that November sales will be "out of this world. "

The Williston Wire -- Who Wudda Guessed? -- A Seasonal Golf Shop Opening In Williston -- November 22, 2017

From the Williston Wire.

New, bigger locations (note how "big" the street numbers are, "8923) and "2124"
  • FedEx: 8923 Oil Avenue
  • Real Deals on Home D├ęcor: 2124 2nd Ave Went
  • Fresh Palate: from the upper level to street level in the Downtown Plaza
  • Rugby Homes & RV Center has expanded into the former Coates RV location at 321 Gate Avenue; the Rugby-based company has had a satellite lot in Williston for 11 years (the ND Bakken boom began in 2007; the Montana mini-Bakken boom began in 2000)
New:
  • the Links of North Dakota has opened a seasonal golf shop on Main Street
The Pro Shop

Super Hogs: Devon And EOG -- Filloon - November 22, 2017

Over at SeekingAlpha: summary --
  • EOG is the king of the Super Hog story, but many other operators are expanding well design and production per foot including Devon
  • Devon has some very good producers in the Eagle Ford, much like EOG's recent results
  • the Eagle Ford and Austin Chalk are emerging as top US intervals, and uniquely situated for newer well designs
  • we are seeing a much larger percentage of wells producing well above the industry average. A couple of years ago, many attributed this to sweet spots or dumb luck. This is starting to become a trend as we have asserted. This has decreased payback times and improved overall well performance. We believe this will continue as most operators have not fully moved to these designs. If EOG's results are any indicator, operators still have a ways to go to meet its standards
Comments: most interesting -- his comments about "sweet spots."

EIA's Weekly Report Released; Re-Balancing Drops To 42 Weeks -- November 22, 2017

Link here.
  • crude oil inventories: decreased by an insignificant 1.9 million bbls; currently at 457.1 million bbls
  • still in a hole with regard to distillate fuel inventories
  • refineries operating at 91.3% capacity, not much change
  • gasoline production increased a bit last week, now averaging 10.4 million bbls/day
  • distillate production also increased a bit last week, now averaging 5.3 million bbls/day
  • overall, a mixed report with little change
From John Kemp, Reuters oil analyst:  US refiners are pouring seasonal record amounts of crude into their cauldrons and still struggling to meet demand for gasoline and diesel.

The API reported a decline of 6.356  million bbls but I use EAI data for the following table.

Re-balancing, drops from 43 weeks to 42 weeks:

Week
Date
Drawdown
Storage
Weeks to RB
Week 0
Apr 26, 2017

529.0
180
Week 1
May 3, 2017
0.9
528.0
198
Week 2
May 10, 2017
6
522.0
50
Week 3
May 17, 2017
1.8
520.2
59
Week 4
May 24, 2017
4.4
515.8
51
Week 5
May 31, 2017
6.4
509.9
41
Week 6
June 7, 2017
-3.3
513.2
60
Week 7
June 14, 2017
1.7
511.5
57
Week 8
June 21, 2017
2.5
509.0
62
Week 9
June 28, 2017
-0.2
509.2
71
Week 10
July 6, 2017
6.3
502.9
58
Week 11
July 12, 2017
7.6
495.3
47
Week 12
July 19, 2017
4.7
490.6
43
Week 13
July 26, 2017
7.2
483.4
38
Week 14
August 2, 2017
1.5
481.9
52
Week 15
August 9, 2017
6.5
475.4
35
Week 16
August 16, 2017
8.9
466.5
30
Week 17
August 23, 2017
3.3
463.2
29
Week 18
August 30, 2017
5.4
457.8
27
Week 19
September 7, 2017
-4.6
462.4
32
Week 20
September 13, 2017
-5.9
468.2
39
Week 21
September 20, 2017
-4.6
472.8
46
Week 22
September 27, 2017
1.8
471.0
46
Week 23
October 4, 2017
6.0
465.0
41
Week 24
October 12, 2017
2.8
462.2
40
Week 25
October 18, 2017
5.7
456.5
37
Week 26
October 25, 2017
-0.9
457.3
39
Week 27
November 1, 2017
2.4
454.9
38
Week 28
November 8, 2017
-2.2
457.1
42
Week 29
November 15, 2017
1.9
459.0
43
Week 30
November 22, 2017
1.9
457.1
42