Monday, November 11, 2019

Norway's Equinor will Sell US Eagle Ford Assets To Spain's Repsol -- November 11, 2019


Later, 2:36 p.m. CT: see comments. A reader has provided the link to ShaleProfile's September, 2019, update. One may want to compare the EIA dashboard with projected production through November, 2019.  The Director's Cut is scheduled to be released this Friday, November 15, 2019, at 10:00 a.m. This is getting deep into the weeds but September, 2019, might be an interesting month to note "production" vs "runs." September, 2019, one of the wettest, if not the wettest, September on record should have huge effect on "runs." Production may or may not be as greatly affected.

Original Post
Link at Rigzone. Data points:
  • $325 million deal.
  • 69,000 net acres
  • back-of-the-proverbial envelope: $5,000 / acre
  • In a statement:
“This transaction supports Equinor’s strategy to optimize our onshore U.S. portfolio, enhancing our financial flexibility and focusing our capital on our core activities in the country,” Torgrim Reitan, Equinor’s executive vice president for Development and Production International, said in a company statement.
“The US is a core area for Equinor, demonstrated by recent acquisitions including assets in the Gulf of Mexico, onshore acreage in the Austin Chalk and the Empire Wind project offshore New York,” he added.
  • The Bakken was not mentioned as a core are for Equinor, which I find quite strange. Were they being politically correct by mentioning an offshore wind project instead? Probably.  
  • Later: see first comment and my reply. Time to take another look at Equinor in the Bakken
    • Equinor's website: hard to find any mention of the Bakken but also very hard to find anything on their Austin Chalk play

Link at Rigzone: Enbridge adding more pipeline capacity. Data points:
  • Enbridge: North America's largest pipeline company
  • adding about 100,000 bopd by optimizing its current system; up from a previous forecast of 85,000 bbls
  • Line 3,  replacement and expansion, $7 billion
  • expects its distributable cash flow for the year to exceed the midpoint of its guidance range
Disclaimer: this is not an investment site.  Do not make any investment, financial, career, travel, job, or relationship decisions based on what you read here or think you may have read here.

Looking For Dividends
"3 out of 5 ain't bad"

Barron's: five stocks with big, steady dividends, November 4, 2019:
  • AT&T: 5.3%
  • Schlumberger: 6.1%
  • AbbVie: 5.4%
  • Simon Property Group: 5.6%
  • Iron Mountain: 7.5%
First, It Was TDS; Now, ADS

October 21, 2019, issue, of The New Yorker: "Is Amazon Unstoppable?" Eighteen pages of pleasure.


  1. It means the Bakken is next contestant to get voted off the island. They could have mentioned it if they wanted to. They didn't. They have gotten out of other good areas before (e.g. Marcellus).

  2. You may be correct. My hunch is they are consolidating their Texas holdings (Austin Chalk and Eagle Ford) into one area: the Austin Chalk. I track the Austin Chalk at the sidebar at the right.

    The last update for the Austin Chalk:
    June 18, 2018: "Analysts" are suggesting frackers will move to the Austin Chalk next.

    If they do leave the Bakken, it will be interesting who picks up their assets. They sold Eagle Ford assets for "a song" as they say. Operators who I think would love to pick up Equinor assets in the Bakken: EOG; CLR; WLL; MRO; XTO; Bruin. And probably in that order.

  3. Yeah, I was wondering who would take it. Not sure if there is a good match with the land boundaries. Seems like most sales in the past have gone to PE. Strategics didn't bite. I think EOG would pass--if anything, could see them exit. Close to done up here. CLR might be a culture fit. They were simpatico with the precursor company that Statoil bought. XOM is a possible fit also, looking to get scale. They still care about the Bakken, show it in slide decks with the Permian. WLL lacks money. MRO is also sort of done up here.

    1. Yes, CLR quickly moves to the top of the list.

    2. The one we are forgetting: Hess.

    3. They definitely have the money to go buy something if they want to. Conversely COP is kind of done up there and more interested elsewhere. Similar with MRO.

  4. Enno reporting SEP ND to be down a bit: He gets the numbers a few days early.

    Helms had said SEP would be tough (weather or something), but OCT would be good.

    1. I did post that Helms said September, 2019, would be tough. I either forgot or did not remember his comments regarding October.

    2. The nature of the oil business. Always looking for that next big play, that next big deal. That's just the way it is. But regardless of who's doing what, there is a huge amount of work that needs to be done in the Bakken.

    3. Still think we break 1.5 this year. OCT/NOV will be up. Expecting a big jump OCT since, there's some growth going on, on top of just "recovery from weather".

    4. I agree 1,000% but I'm afraid to ever project/predict. There are just too many variables. Bottom line for me: a lot of folks are finding working in the Bakken and there's a lot of work left to be done in the Bakken.