Tuesday Morning Links, News, And Views -- DNR Surges -- Active Rigs Up -- Part I

Futures: market down slight; oil up about 50 cents. See disclaimer.
 

Active rigs: 183

RBN Energy: propane exports surging.

Over the past six weeks, the price of Mont Belvieu propane has strengthened by more than 20%.  That’s not supposed to happen in the middle of the summer doldrums when the only growth market for propane is backyard BBQ grills.  Could supply be falling?  Not hardly.  The most recent Energy Information Administration (EIA) numbers show propane production from natural gas processing plants hitting another record, up 42% in the past four years.   You might think that kind of supply growth would crush prices.  But there is an escape valve for excess propane supplies:  Exports – and lots of them.  Fortunately international markets have been there to soak up the barrels.   Today we will examine how this is all shaking out in the U.S. propane market.

Reminder: several Bakken-related companies will be reporting earnings today, mostly after market close.

Denbury reports: Denbury Resources Inc. today announced adjusted net income (a non-GAAP measure)⁽¹⁾ of $151 million for the second quarter of 2013, or $0.41 per diluted share. Second quarter of 2013 net income (the GAAP measure) was $130 million, or $0.35 per diluted share, on record high quarterly revenues of $645 million. Investors must be pleased: the stock is up almost 5% in pre-market trading. Earnings beat by 6 cents.

The demise of Newsweek: I completely lost the bubble on this one. I've written about Newsweek before. It looks like this is, finally, the end of Newsweek. A long, long, 3-page article on how it happened in The New York Times.  Regardless of what digital did to Newsweek,  I always felt that its content did them in.

I received a very nice comment from a reader regarding China. As you all know, there is a very close relationship between China and Canada; many Chinese have emigrated to Canada over the years. Recently, the reader's Canadian cousin visited Canada with a friend who had lived and worked in China for many years. They toured much of the country by automobile, noting that gasoline prices were similar to those in Canada, that is, about 25% higher than in the US -- that is, very high gasoline prices. Unlike in America, where it is not uncommon for folks to complain about the high price of gasoline when filling up, the Chinese seemed to be happy they could travel on their own, and the price of gasoline was simply not an issue. And the roads? Four- and six-lane highways, including miles and miles of elevated highways (bridges) over agricultural land to minimize loss of farming land. A very nice note, confirming my thoughts about the Chinese economy.

By the way, did you all notice the recent article that China is considering relaxing its one-child law? They wouldn't be doing that if they didn't think the economy could support two-child families. They are probably hoping to increase the number of daughters; the male-female ratio is way out of line.