Wednesday, June 24, 2015

Random Update On The CLR Hawkinson Wells In Oakdale Oil Field, Dunn County -- June 24, 2015

A reader asked if there was anything new on the CLR Hawkinson wells in Oakdale oil field, Dunn County.

A quick look and my general observations:
  • there are eleven Hawkinson wells on various multi-well pads
  • there are two singletons: one was the first; the other is brand new, still on confidential list
  • it does not appear these wells have been choked back; certainly they have not been taken off line
  • in the aggregate, these wells are much, much better than their IPs would have suggested
  • some wells are still shown to be "F" - flowing on their own without AL (artificial lift - pump)
I went through these quickly. I may have missed something. I might come back to these later when I get caught up with other stuff.

I track the Hawkinson wells here. Cumulative production has been updated; note the new singleton.

This Is Not An Investment Site, But These Are A Couple Of Cool Stories

First, Disney. It appears the heirs to the mousey kingdom are making a lot of money. The kingdom is making so much money, not only is the company going to raise its dividend, but it's going to start paying its annual dividend semi-annually (twice a year) instead of just once a year. Apparently the vault is running out of room. Bloomberg is reporting:
Walt Disney Co. raised its dividend by 15 percent following record results and said it would begin paying investors twice a year. 
Disney has posted record profit for the past four years as investments in films and theme-park attractions drew more customers to its properties. It has two of the top four domestic films of 2015 in “Avengers: Age of Ultron” and “Cinderella.” Such hits reap returns long after they’ve left theaters through merchandise sales, TV airings and theme-park attendance.
The company has more than doubled its dividend since 2011. Still, Disney’s projected yield, based on the new annual rate of $1.32 a share, is 1.2 percent. That compares with the current 2 percent for the Standard & Poor’s 500.
Maybe I will turn this blog into an investment site, but it will be a bit different than all the rest. I will point out, after the fact, which companies one should have invested in, like five years ago.

Meanwhile, Netflix is going to make its shareholders feel richer by taking a page from the AAPL playbook: split 7 - 1.  The writer at the linked article, no doubt an MBA from a prestigious East Coast school of business and who now writes for one of the best financial "magazines," noted:
What happens when a company split its stock is that price of a single share falls, but the value of the company doesn't change at all.
I wonder who reads the Business Insider did not know that. Unless, of course, the company is either Apple or Netflix in which case the company is growing every day, every hour, and perhaps, even every minute. But, yes, in principle, the writer is correct: the split does not change the value of the company in and of itself.

However, the writer did say something that was definitely wrong:
The reason to buy or not buy (or sell!) a stock is because of what you think the company is worth, meaning how much a company makes in profit, or what you think it could make in the future, and so on. 
I doubt not one person in 10 buys a stock in a company based on what the company is worth. I doubt not one person in 10 could ever sit down and actually do the math to figure out what a company is worth. No, folks don't buy or not buy a stock based on what they think the company is worth, they buy or don't buy on whether they think someone else will come along and pay a higher price for the same share of stock. Look at Tesla. It goes up and down every day. I doubt one person in ten who buys Tesla stock is running the figures each day to determine what the company is worth. Right now, some would say it's not worth a whole lot and that's why they've shorted the stock.

Pretty poor excuse for an article from Business Insider. They're starting to look like my blog.

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