Monday, February 24, 2014

Eleven (11) New Permits -- The Williston Basin, North Dakota, USA; Whiting With A Nice Well

Active rigs:

Active Rigs18718120416897

Eleven (11) new permits --
  • Operators: Oasis (5), Newfield (3), XTO (2), MRO
  • Fields: Tyrone (Williams), Cow Creek (Williams), Sandrocks (McKenzie), Corral Creek (Dunn), MRO (Dunn)
  • Comments:
Wells coming off confidential list were posted earlier; see sidebar at the right.

Wells coming off confidential list Tuesday:
  • 24822, 1,284, Whiting, Kjelstrup Federal 11-19-1PH, Roosevelt, t8/13; cum 31K 12/13;
  • 25208, drl, HRC, Fort Berthold 148-95-22c-15-4H, Eagle Nest, no production data,
  • 25579, 1,303, Whiting, Asbeck 34-7-1H, Harding, t8/13; cum 41K 12/13;
  • 25602, drl, KOG, P Scanlan 153-98-16-9-5-5H, Truax, no production data,
  • 25783, 2,485, BR, CCU William 14-20MBH, Corral Creek, t2/14; cum --
  • 25824, 1,248, Newfield, Holm 150-98-17-20-4, Siverston, t12/13; cum 5K 12/13;
  • 26083, 245, CLR, Alamo 1-34H, Burg, t10/13; cum 12K 12/13;

Magnum Hunter Resources Reports Earnings

Press release:
  • oil and gas revenues increased 64% to $59.4 million for the fourth quarter of 2013, compared with revenues of $36.1 million for the fourth quarter of 2012 
  • midstream and marketing revenues increased 595% to $18.2 million for the fourth quarter of 2013, compared with revenues of $2.6 million for the fourth quarter of 2012 
  • adjusted EBITDAX (a) for the fourth quarter of 2013 and full year 2013 were $37.0 million and $112.4 million, an increase of 54% and 48%, respectively 
  • adjusted net loss (a) of ($0.14) per diluted share is reported for the fourth quarter of 2013

EOG Earnings Beat Expectations; Sets Stock Split

EOG beats by 6 cents. Link here. Yahoo!Finance is reporting:
EOG Resources Inc reported a better-than-expected fourth-quarter profit on Monday as the U.S. oil and natural gas company pumped more crude oil from fields such as the Eagle Ford in Texas.

EOG, which said it expects higher spending of $8.1 billion to $8.3 billion this year, has invested heavily in North American shales that produce higher-return oil, a strategy that helped push the company's crude and condensate output up 50 percent in the fourth quarter.
Shares of EOG rose to $184 per share in post-market trading on Monday, up 2 percent from the New York Stock Exchange close of $180.40.
The Houston-based company had a profit of $580 million, or $2.12 per share, compared with a loss of $505 million, or $1.88 per share when EOG wrote down the value of some Canadian assets.
Excluding one-time items, EOG had a fourth-quarter profit of $2.00 per share. Analysts polled by Thomson Reuters I/B/E/S had expected a profit of $1.94 per share.
Its board of directors approved a two-for-one stock split in the form of a stock dividend that is payable to shareholders of record as of March 17.

For Investors Only

I'm traveling, so I can't predict when I will post again today.

Natural gas to $10? -- Gartman. I think Gartman is a bit "behind the 8-ball" as they say; now trying to catch up with the obvious.

WTI crude above $100/bbl for the 11th day -- Bloomberg
West Texas Intermediate crude traded above $100 a barrel for an 11th day on speculation that inventories at Cushing, Oklahoma, fell. The price of Brent rose.
WTI gained as much as 1.2 percent. Supplies at the delivery point for WTI futures probably slid for a fourth time last week, three analysts forecast, as the southern leg of TransCanada Corp.’s (TRP) Keystone XL pipeline moved oil to Texas. Prices also increased as the Standard & Poor’s 500 index reached a record. The Brent-WTI spread shrank to as narrow as $7.05 a barrel.
“We should see some further declines in Cushing inventories,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy.
“With the stock market charging higher, we are getting some overall support there. The rally is mostly spread-related.”
For investors only. Market opened strong, and oil is up slightly.

KOG already trading at new highs. [Mid-day trading: some of the Bakken operators are surging.]

Disclaimer: this is not an investment site. Don't make any investment decisions based on anything you read here or what you think you may have read here. I don't own any shares in KOG. I did at one time; I have no plans to reinvest in KOG. 

18 companies announce increased dividends or distributions, including previously announced ARII with a huge bump from 25 cents to 40 cents, plus additional announcements at original post.

Coca-Cola is also increasing its dividend.

Chesapeake Energy announces it is pursuing strategic alternatives for its Oilfield Services Division: Co announces that it is pursuing strategic alternatives for its oilfield services division, Chesapeake Oilfield Services, including a potential spin-off to Chesapeake shareholders or an outright sale. COS' operations are currently conducted through Chesapeake's wholly owned subsidiary, Chesapeake Oilfield Operating. COS had revenues in 2013 of ~$2.2 billion, and its service offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal.

 SRE trading near all-time highs; MDU, also trading near all-time highs.

EOG should report earnings after market close today. Forecast: $1.94.

Kentucky Natural Gas Pipeline (Williams Partners) Delayed Until 2016

PennEnergy is reporting:
The construction of a planned natural gas pipeline in Kentucky has been delayed until 2016, The Associated Press reported. Alan Armstrong, president and chief executive officer of Williams Partners L.P., announced the decision in the company's 2013 financial report. The natural gas processing and transportation firm said the Bluegrass Pipeline project was pushed back to mid- to late-2016 in order to accommodate producer needs.
"The new timeframe is more consistent with evolving market conditions," a statement by the company said.
Once completed by Williams Co. and Houston-based Boardwalk Pipeline Partners, the pipeline will transport natural gas from northern to central Kentucky through 500 miles of pipeline.
The delayed construction of the Bluegrass Pipeline project is expected to lower Williams Co.'s capital expenditures by $1.4 billion over the next two years, Kentucky newspaper The State Journal reported.

Another Staggering EOG Well In The Bakken; 54 Stages; 17 Million Pounds Of Sand; 216,000 Bbbls In Less Than Five Months -- February 24, 2014

25336, 2,129, EOG, Wayzetta 137-2226H, Parshall (215,000 bbls in less than five full months), 54 stages; 17 million lbs of sand; t9/13; cum 625K 10/16:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

For newbies: "in the beginning," we all thought BEXP (Statoil) was using a huge amount of sand when they used four (4) million pounds. I'm not sure if I've seen anyone use 17 million lbs. Total depth was 20,557 feet, so a typical long lateral. The target was the middle Bakken, though the "137" suggested a Three Forks.

Later, a reader noted that I thought 54 stages, 17 million pounds was a record. Note these:
  • 22487, 67, EOG, Hawkeye 02-2501H, 69 stages, 27.6  million pounds, according to a reader, extended long lateral (3 sections long); t12/13; cum 655K 10/16;
  • 22484, 2,946, EOG, Hawkeye 102-2501H, Three Forks, 62 stages, 14 million pounds; extended long later (3 sections long); t1/13; cum 536K 10/16

Monday, February 24, 2014

Massive new BHI research facility completed; Claremore, Oklahoma. PennEnergy is reporting:
..... the new Artificial Lift Research and Technology Center in Claremore, Oklahoma with a large reception and tour, showing off the facility to business partners, state and local dignitaries, and members of the press. The massive structure provides an all-in-one experience for artificial lift customers, housting design, fabrication, testing, and analysis in a single facility.
Construction on the 80,000 square foot facility began in 2012. The center adds to the testing capabilities of the artificial lift product center, also located in Claremore adjacent to the new facility.
The pinnacle of the ALRTC is a large test well area, featuring six vertical test wells of various diameters and depths. The test well area includes a 100-foot ceiling supporting 3, 30-ton cranes capable of lifting 90 tons, and massive bay doors to allow for loading and unloading of equipment to simulate real world field conditions.
Active rigs in North Dakota:

Active Rigs18718120416897

RBN Energy: Natural gas storage fears spike price of natural gas.
Two short years ago at the end of March 2012 natural gas marketers despaired of ever finding a home for surging natural gas production after a historically mild winter left underground gas storage bursting at the seams. A week later in April 2012 natural gas CME NYMEX Henry Hub prices dipped below $2/MMBtu and producers started shifting their drilling rigs to wet gas and liquids plays in search of higher returns. Fast-forward to today and we move towards the end of another record winter – this time a freezing cold one. Last week gas prices climbed over $6/MMBtu and the gas storage gauge will likely be close to empty (metaphorically speaking) by the end of March. Today we provide an update on this winter’s gas market.
The Wall Street Journal

Of course, the lead stories about the Ukrainians booting out Putin and the Russians.

Netflix to pay Comcast for speed.

American Academy of Pediatrics doesn't want "retail health care clinics" popping up in drugstores and strip malls to become primary care clinics for children. Too late. 90% of what pediatricians "do," can be "done" by nurse practitioners. Welcome to Obamacare.

Yes, the CBR story and high combustibility of Bakken crude is in today's paper. Posted earlier as a stand-alone post.

The Los Angeles Times

Maria Bartiromo's big day with Fox Business Network is arrivingI hope this works. I would love a good alternative to CNBC.

Long overdue: CNN will cancel "Piers Morgan." I'm surprised he lasted this long. I don't think I watched him more than once or twice (passing through airports) but that was more than enough. Had he not had a British accent he would have been gone long ago.