Wednesday, February 19, 2025

Apple C1 Chip -- $25 / Month -- Or A Couple Dozen Eggs / Month -- The iPhone 16e Is Practically Being Given Away -- February 19, 2025

Locator: 48589APPLE.

My hunch: won't be able to keep up with demand. 

What is Apple thinking: they introduce a chip that took years to develop and cost billions and eliminated Qualcomm as a third party supplier and put it in their least expensive phone. What were they thinking? LOL. And, oh, by the way, it has satellite connectivity. Who wouldn't want it?

$25 / month = one visit to Starbucks each week. Or a single entre / drink at any upscale family restaurant.  I honestly don't get it -- that folks don't understand this -- telecom service would be about the same. Perfect starter phone for any high school student and, perhaps, an older middle schooler.

One can pay for it over two years, but if it last three years: $17 / month. My hunch: this will be heavily subsidized by the carrier. 

Satellite connectivity? Yes. 

Longevity: one gets the feeling this model was made and is being marketed to last at least the next five years, or the next six years, which would mean three two-year cycles.

Camera: holy mackerel -- current (third generation) SE has a 12MP camera. The new iPhone 16e's camera is a 48MP! Truly amazing. Front-facing camera jumps from 7MP to 12MP and matches the front-facing camera of all the other "16" iPhones, including the top of the line, iPhone 16 Pro.

For investors, one would assume the costs associated with the C1 chip have pretty much been sunk costs. See Qualcomm.

X: numerous links -- we will start with this link.

And then, this one.

More, link here:


More, link here:

Where is the Apple C1 chip manufactured: in Arizona, need be, to get around tariff issues -- that's why Tim Cook went to Washington, DC, to talk to Trump.

This is revolutionary:

To the best of my recollection the C1 was not mentioned over at MacRumors. Today was the first time most of us have been introduced to the C1. There is nothing yet over at "wiki" with regard to the C1 except stating that it is the first such chip / modem for Apple. See Apple Silicon. I would say that's revolutionary -- and Apple kept it a big secret.

  • MacRumors, link here. There must be no less than a dozen separate MacRumors stories regarding this new phone -- ten stories means this is "revolutionary," not evolutionary!
  • 8 GB of RAM for AI;
  • phases out Lightning Port;
  • no more 64 GB of storage; iPhones now start with 128 GB of storage; link here;
  • here it is, Apple's first custom cellular modem; link here;

The Verge, link here

Apple’s first in-house iPhone modem is the C1 The iPhone 16E will be the C1’s proving ground.
Apple has just introduced the iPhone 16E, a spiritual successor to the iPhone SE line that has a significant first: it introduces Apple’s long-awaited in-house 5G modem called the C1.
The chip, which Apple says is the most power-efficient modem in a phone, is Apple’s bid to end its reliance on Qualcomm’s 5G chips. Apple says the chip contributes to the 16E’s longer battery life.
The company says the phone’s internal design is optimized to support a larger battery, giving it up to 26 hours of video playback. According to Apple’s technical specifications for the iPhone 16E, its new chip covers much of the same low-end 5G spectrum as the iPhone 16 but lacks mmWave — that’s the 5G with gigabit-territory throughput.
The C1 starting in the 16E makes sense: the $599 device is now the cheapest way to get one of Apple’s thin-bezel phones with Apple Intelligence. If this inaugural outing for the chip doesn’t end up being great, people may chalk it up to this being a more affordable phone.

The WSJ: link here.

Apple announced the iPhone 16e on Wednesday, an update to a budget-friendly version of its flagship device.
The most significant change to the phone will be invisible to users. Inside the phone is Apple’s first in-house cellular chip—a critical component for smartphones that enables cellular connections.
The chip, which Apple dubbed the C1, is a long-awaited next step in Apple’s efforts to make more of its own technology, and especially to wean itself from having to pay billions annually to cellular-chip-maker and rival Qualcomm QCOM.
The new iPhone 16e will be available at the end of this month, selling for $599. The 16e is priced at a level consistent with previous generations of Apple’s lowest-priced iPhone, the SE, which was released in 2022 with a starting price of $429. The phase-out of that SE model will bring an end to the home button, which would grant access to the device using a fingerprint reader. The 16e will use Face ID instead.

Apple Wiki C1: link here.

Not much here yet at wiki: link here.

Tickers:


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A Musical Interlude

"Many refer to 1971 as the most pivotal and exciting of the Rock Era, and I wholeheartedly agree with [the top three below .. which was easy]. So, I'm doing the impossible ... I'm counting down the Top 10 songs from this emblematic year." 

From the link below:

Link here.


Led Zeppelin: link here. The Vikings' National Anthem.

Three New Permits Including Two More Austin Permits In Parshall Oil Field -- February 19, 2025

Locator: 48588B.

WTI: $72.25.

Active rigs: 32.

Three new permits, #41622 - #41624, inclusive:

  • Operators: EOG (2); CLR
  • Fields: Parshall (Mountrail); Upland (Divide)
  • Comments:
    • CLR has a permit for a Kleist well, SESE 35-161-96, 
      • to be sited 645 FSL and 450 FEL; 
      • three-section spacing, sections 23 / 26 / 35 - 161-96;
    • EOG. has permits for two Austin wells, Parshall oil field, SWSE 10-154-90, 
      • to be sited 320 FSL and 1470 / 1510 FEL; 
      • both three-section spacing, the first, 4 / 9 / 10 - 154-90; and, the second, 3 / 4 / 10 - 154-90.

Three permits canceled:

  • MRO (2): Levi USA and Kottke USA; Dunn County;
  • Grayson Mill: Barbara, McKenzie County;

NOG, Amazon -- February 19, 2025

Locator: 48587NOG.

NOG, press release:

FOR INVESTORS:
  • earnings: $1.11 missing the estimate of $1.18
  • revenues, a miss also: $545,700,000 vs estimates of 571,354,081
  • shares hold after hours;
  • pays about 5%

FOURTH QUARTER HIGHLIGHTS:
  • Production of 131,777 boe per day (59.9% oil), a 15% increase from the fourth quarter of the prior year
  • GAAP cash flow from operations of $290.3 million. Excluding changes in net working capital, cash flow from operations was $358.9 million
  • Capital expenditures of $258.9 million, excluding previously-announced non-budgeted acquisitions and other items
  • Free Cash Flow (non-GAAP) was $96.4 million in the fourth quarter.
  • Closed previously announced acquisition of Uinta Basin assets from XCL Resources, LLC on October 1, 2024 for $511.3 million in cash
  • Declared $0.45 per share common dividend for the first quarter of 2025, an increase of 12.5% from the first quarter of 2024
  • Repurchased 693,658 shares of common stock at an average price of $36.28 per share
SUBSEQUENT EVENTS:
  • In February 2025, signed definitive agreement to acquire 2,275 net acres in Upton County, TX in Midland Basin joint development with a private operating partner for an unadjusted purchase price of $40 million.

2025 ANNUAL GUIDANCE, CAPEX:
  • Permian: 65%
  • Williston: 20%
  • Appalachian: 7%
  • Uinta: 7%

Amazon: from Amazon today --

... that "$500" paid for the annual membership and all the books I bought last year. All the books I bought.

In addition, for that membership, we get:

  • 100% free shipping on everything I order from Amazon, my #1 retailer and way ahead of whatever retail store is in second place. 
    • everything is delivered directly to my door saving me time and transportation costs. 
  • in addition, we get Amazon Prime Video at no extra charge. 
  • for streaming, my favorite is Hulu, followed by YouTube, and then Amazon Prime Video.
    • there are other "goodies" associated with Prime membership but those are the ones with which I'm most familiar. 

From the internet:

In 2025, the retail cost to ship a 1-pound package via USPS Ground Advantage is $8.35 in Zone 1.This is the former USPS Parcel Select Ground. 

One such package per month = $100 / year.

The Permian-Focused E&P Expands Again Through M&A -- RBN Energy -- February 19, 2025

Locator: 48586PERMIAN.

RBN Energythe Permian-focused E%P expands again through M&A. Archived.

We defy you to name an oil and gas producer that’s been on the buying side of more $1-billion-plus M&A than Permian pure play Diamondback Energy, which announced February 18, 2025, that it had agreed to purchase a chunk of Midland Basin assets from Double Eagle IV, one of the Permian’s largest privately held producers, for just under $4.1 billion.
You’d be equally hard-pressed to find a team that’s assembled and flipped more Permian acreage and production than the folks at Double Eagle. In today’s RBN blog, we discuss the newly announced Diamondback/Double Eagle IV deal and what it gives Diamondback, the fourth-largest producer in the Permian after ExxonMobil, Chevron and Occidental Petroleum.

Travis Stice, who has served as the company’s CEO for the past 13 years and chairman for the past three, has said that “M&A is as fundamental to Diamondback Energy as the air we breathe.”

No argument there, as evidenced by the E&P’s seemingly insatiable appetite for top-tier Permian acreage and oil-focused production. Midland-based Diamondback started a long string of multibillion-dollar deals in 2017 when it bought assets from Brigham Resources for $2.55 billion. The E&P followed that up in 2018 with agreements to acquire Ajax Resources for $1.25 billion and Energen for a whopping $9.2 billion, thereby increasing Diamondback’s Permian production by 75% and more than doubling its proved reserves. In the months after COVID hit in early 2020, the company bought QEP Resources and Guidon Energy for a total of $3 billion, and in 2022 it shelled out $1.6 billion for FireBird Energy and $1.5 billion for Lario Petroleum.

You’d think that after seven deals totaling more than $19 billion that Diamondback might have finally had its fill. After all, over just a few years it had rocketed to #5 on the list of publicly held Permian producers — and one of the biggest E&Ps in the U.S. for that matter.

But the company was really only getting started.

As we discussed in You Belong With Me, Diamondback announced last February that it had entered into its biggest deal ever: a $26 billion, stock-and-cash agreement to acquire privately held Endeavor Energy Resources. The transformational transaction, which closed in September, doubled Diamondback’s net acreage in the Midland to 694,000, increased its total Permian acreage by 70% to 838,000 (see Figure 1 below), and helped Diamondback boost its production by more than 90% year over year — from 463 Mboe/d in Q4 2023 to an estimated 870 Mboe/d in Q4 2024.

[Doing the math: $45 billion / 838,000 acres = $55K / Permian acre. Assuming FANG owned some Permian before it went on a buying spree, the $/acre has to greater.]

Diamondback and Endeavor Acreage in the Permian at Announcement

Figure 1. Diamondback and Endeavor Acreage in the Permian at Announcement. Source: RBN

Nikola Goes Bust; Apple Unveils New iPhone; And The Bakken Is As Strong As Ever -- February 19, 2025

Locator: 48585NIKOLA.

Nikola

In other news:

Trump stops global warming in first month of new administration. Secretary of Interior to be nominated for Nobel Prize. Will receive Medal of Freedom in special Oval Office ceremony. New federal holiday to be announced: Doug Burgum Day. Greta Thunberg to purchase a brand new Ford F-450. Al Gore to release his award-selling book with new introduction, and re-titled: I Was Wrong. Some of the preceding may be inaccurate. Needs to be fact-checked.

Record lows: link here. Later, North Dakota lows -- these are actual temps, not wind chill numbers -- but actual numbers -- unless. you've lived there, you can't imagine these numbers --


Apple iPhone 16e: no joke
link here.

  • ticker AAPL: improves slightly after announcement. 
  • then in late morning trading, goes positive! Whoo-hoo! 

Politics:

  • watching political news the past few weeks, the GOP is going to have an incredible stable of folks running for president in 2027 ...
    • SecState: Rubio -- the one to beat
    • JD Vance: or is he the one to beat
    • and then all the rest will look forward to a second term
  • the Dems? Kamala, Newsom, George Clooney, Jeffries ... in that order

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Back to the Bakken

WTI: $72.46.

New wells: 

  • Thursday, February 20 2025: 36 for the month, 81 for the quarter, 81 for the year,
    • None.
  • Wednesday, February 19, 2025: 36 for the month, 81 for the quarter, 81 for the year,
    • 40428, conf, Grayson Mill, Alfred North 17-15 4H, 

RBN Energythe Permian-focused E%P expands again through M&A.

We defy you to name an oil and gas producer that’s been on the buying side of more $1-billion-plus M&A than Permian pure play Diamondback Energy, which announced February 18, 2025, that it had agreed to purchase a chunk of Midland Basin assets from Double Eagle IV, one of the Permian’s largest privately held producers, for just under $4.1 billion.
You’d be equally hard-pressed to find a team that’s assembled and flipped more Permian acreage and production than the folks at Double Eagle. In today’s RBN blog, we discuss the newly announced Diamondback/Double Eagle IV deal and what it gives Diamondback, the fourth-largest producer in the Permian after ExxonMobil, Chevron and Occidental Petroleum.

Travis Stice, who has served as the company’s CEO for the past 13 years and chairman for the past three, has said that “M&A is as fundamental to Diamondback Energy as the air we breathe.”

No argument there, as evidenced by the E&P’s seemingly insatiable appetite for top-tier Permian acreage and oil-focused production. Midland-based Diamondback started a long string of multibillion-dollar deals in 2017 when it bought assets from Brigham Resources for $2.55 billion. The E&P followed that up in 2018 with agreements to acquire Ajax Resources for $1.25 billion and Energen for a whopping $9.2 billion, thereby increasing Diamondback’s Permian production by 75% and more than doubling its proved reserves. In the months after COVID hit in early 2020, the company bought QEP Resources and Guidon Energy for a total of $3 billion, and in 2022 it shelled out $1.6 billion for FireBird Energy and $1.5 billion for Lario Petroleum.

You’d think that after seven deals totaling more than $19 billion that Diamondback might have finally had its fill. After all, over just a few years it had rocketed to #5 on the list of publicly held Permian producers — and one of the biggest E&Ps in the U.S. for that matter.

But the company was really only getting started.

As we discussed in You Belong With Me, Diamondback announced last February that it had entered into its biggest deal ever: a $26 billion, stock-and-cash agreement to acquire privately held Endeavor Energy Resources. The transformational transaction, which closed in September, doubled Diamondback’s net acreage in the Midland to 694,000, increased its total Permian acreage by 70% to 838,000 (see Figure 1 below), and helped Diamondback boost its production by more than 90% year over year — from 463 Mboe/d in Q4 2023 to an estimated 870 Mboe/d in Q4 2024.

[Doing the math: $45 billion / 838,000 acres = $55K / Permian acre. Assuming FANG owned some Permian before it went on a buying spree, the $/acre has to greater.]

Diamondback and Endeavor Acreage in the Permian at Announcement

Figure 1. Diamondback and Endeavor Acreage in the Permian at Announcement. Source: RBN 

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The Book Page

I think I need to identify another "genre" of books.

"Airport" books. That category has already been identified by others. See this blog.

Who Really Wrote The [Hebrew] Bible: The Story of the Scribes, William M. Schniedewind, c. 2024. Princeton University Press, definitely fits this category.

Arrived today at the door, via Amazon. 

The notes for this book will be at this blog.