Note: in a long note like this there will be factual and typographical errors. Some numbers are rounded. Opinions/comments are interspersed with data points. This is posted b for my benefit to better understand the Bakken. If this information is important for you, go to the source.
Data points:
- net acres: 157,083; 93% held by production; 40+ operator partners
- the majority of the operator partners are the best in the business
- majority of acres in the Bakken "big 4" counties
- production: 36,258 boepd
- proved reserves: 135.5 million boe
- 3,737 days of production at current rate = 10 years
- cash flow, 4Q18: $500 million; from operations: $430 million
- look at this: 22 employees
- that's it: 22 employees
- non-consent: if NOG does not participate in any given well, NOG does not lose its rights to participate in future wells in same zones in same drilling spacing unit (a great example of an open-book test)
- experience: over 5,000 wells so far; 30%+ of all Bakken and Three Forks wells drilled so far --
- I knew it had to be high; I did not know it was that high
- the Bakken:
- NOG says 7.4 billion bbls of recoverable oil
- 15,000 producing wells so far
- the Red Queen? Nope: "Williston rig activity may be plateauing, but production continues to grow as well efficiency and recovery is enhanced"
- current wells with EURs that now exceed 1 million boe
- 2017: 12 month production up 25% over 2016
- 2018: 12 month production up 6% over 2017
- NOG will continue with accretive acquisitions
- Debt (numbers rounded):
- 12/13/18: $830 million
- 6/40/18: $635 million
- Notes: 8.5% due 2023 -- $700 million
- Revolving credit facility -- $140 million
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