Thursday, October 11, 2018

Morning Note Posted -- October 11, 2018

API weekly crude oil inventory data: link here. Wow, this is incredible -
  • a massive build of 9.75 million bbls (and it could be worse next week)
  • expectation: a smaller build of 2.62 million bbls
Natural gas prices soaring: fill-rate hits decade-low. The gap continues to widen.

Wells coming off confidential list today -- Thursday, October 11, 2018:
  • 34645, drl,  Eagle Operating, Popinga 32-16, wildcat, no production data,
  • 32021, SI/NC,  Hess, CA-Stangeland-155-95-2128H-5, Capa, no production data, 
  • 31987, 1,063,  Oasis, Hanover Federal 5300 41-11 13TX, Willow Creek, a nice well; t4/18; cum 105K 8/18;
Active rigs:

Active Rigs68593368190

RBN Energy: part 4, location, location, location, key to near-term E&P profitability growth.
Anyone who’s shopped for a home is well-aware of the relationship between location and valuation. The same holds true for oil and gas producers accumulating a portfolio of real estate underlain by the most promising oil and gas formations. Recently, the most desirable neighborhood has been the Permian Basin, which has seen more than $70 billion in M&A transactions since mid-2016. While the entire U.S. E&P sector has returned to profitability, Permian players have generated the highest production growth, the best margins, and the most substantial profits and cash flows. There’s a catch, though: production growth in the Permian has led to serious takeaway constraints. Today, we discuss how the impact of these constraints is reflected in a company-by-company analysis of quarterly results.

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