Chesapeake Spin-Off -- Seventy Seven Energy To File For Chapter 11 Bankruptcy -- April 29, 2016

Reuters/Rigzone is reporting:

Oilfield services company Seventy Seven Energy Inc said it intended to file for a prepackaged Chapter 11 bankruptcy on or before May 26, 2016.

The company, which was spun off from Chesapeake Energy Corp in 2014, said it had entered into a restructuring agreement with certain lenders that would allow it to convert about $1.1 billion of its debt into equity.

Saudi Arabia Takes Out That $10 Billion Loan -- But "We" Don't Actually Need The Money -- LOL -- CNBC -- April 19, 2016

This was posted April 4, 2016:

April 4, 2015: Update on Saudi's biggest ever economic overhaul. The hammer is dropping.

The government is in talks with banks to raise about $10 billion through a syndicated loan, two people familiar with the matter said last month. While Al-Sheikh declined to confirm the details and the potential size of the deal, he said it will be followed by the kingdom’s first international dollar bond as early as September.

“We’re doing it now because we actually don’t need the money but we want to prepare ourselves for the future to make sure that when we actually go to the markets and we really need the money, the markets, the investors, the financial institutions already know us."

Tonight it's being reported that Saudi Arabia has taken out the $10 billion loan. CNBC is reporting:

Saudi Arabia is raising $10bn from a consortium of global banks as the kingdom embarks on its first international debt issuance in 25 years to counter dwindling oil revenues and reserves.

The landmark five-year loan, a signal of Riyadh's newfound dependence on foreign capital, opens the way for Saudi to launch its first international bond issue. It comes as the sustained slump in crude encourages other Gulf governments, such as Abu Dhabi, Qatar and Oman, to tap international bond markets.

Come On Eileen, Dexys Midnight Runners

Apple Vs Microsoft; PC Vs Mac -- April 19, 2016; Will The Games Go On?

Will the Games go on? It's not a trivial question, what with Zika and debt crisis. Bloomberg is reporting:

Rio de Janeiro said it’s running out of money to pay for basic services months before the Olympic Games while other Brazilian states warned of similar financial crises if the federal government doesn’t provide debt relief.

Six state governors and a representative for Rio de Janeiro said on Tuesday their fiscal woes are forcing them to make cutbacks that could lead to a breakdown of social services. Rio has been delaying payment of salaries to public servants since the beginning of the year.

The states argued before the Supreme Court on Tuesday that the situation has become so dire that they should be allowed to pay simple rather than compound interest on debts owed to the federal government. The court will rule on the matter April 27. The change would cost the Treasury 313 billion reais ($88 billion) in lost revenue, according to the Finance Ministry.

Brazil’s state debt crisis is deepening as the country faces its worst political crisis in decades and austerity measures are put on hold. The high court’s decision will have a profound impact on the finances of both state and federal governments as tax revenues plunge amid the worst recession in decades.

The crisis comes as the state prepares to host the Olympic Games in August, possibly making it difficult to carry out basic functions such as fueling police cars and maintaining hospitals.

“We’re talking about the image of the country,” he said. “We are nearing a social collapse in our state.”

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The Katie Ledecky Page

TeamUSA is reporting:

Katie Ledecky won the 800-meter freestyle by nearly 15 seconds at the Arena Pro Swim meet Saturday night, her third victory in three days just over two months before the U.S. Olympic swimming trials.

Ledecky swam well ahead of the rest of the field and touched in 8 minutes, 13.20 seconds on the last night of the meet at Skyline Aquatic Center. Conditions were much calmer than Friday when wind gusts up to 30 mph kicked up the water and gave swimmers an extra element to fight against.

Ledecky finished 14.65 seconds ahead of Lotte Friis of Denmark, who touched in 8:27.85. Cierra Runge finished third in 8:32.21.

Ledecky added the 800 free to her earlier victories in the 200 and 400 freestyles. She later finished sixth in the 100 free; her specialty is the longer distances.

Apparently Katie is human.

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Bliss

Five hours of bliss. I am home alone for several hours while the wifely unit is with granddaughter #1 attending a symphony in Dallas tonight.

I am watching the 40th anniversary "edition" of the Rocky Horror Picture Show -- something I've wanted to do for several weeks but can't watch it when May is home; she doesn't care for the movie. Tonight I can watch it and play it loud. Wow.

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Intel Slashes 12,000 Jobs

Just how big is Apple? Let's start here: Microsoft and Intel were joined at the hip(s) some years ago. Apple uses the A9. From wiki:

The Apple A9 is a 64-bit system-on-chip (SoC), designed by Apple Inc. Manufactured for Apple by both Samsung and TSMC, it first appeared in the iPhone 6S and 6S Plus which were introduced on September 9, 2015.

Apple states that it has 70% more CPU performance and 90% more graphics performance compared to its predecessor, the Apple A8, and is currently one of the most powerful mobile chips on the market today along with the Samsung Exynos 8890 and Qualcomm Snapdragon 820.

Intel was not mentioned in that paragraph.

Apple continues to shine.

Intel? Business Insider is reporting that Intel will "slash" 12,000 jobs; take a $1.2 billion write-off.

The iPad Pro uses the A9 chip. My wife doesn't know it yet, but that's the next Apple mobile device I am getting her; I will get her the largest screen possible. It will be used as a television set in the kitchen but so much more.

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Fools Rush In

We were being set up; being told this would be the worse earnings season ever and by implication, a huge, huge disappointment for those invested in equities. So where are we?

CNBC is reporting that the Dow settled at 2016 highs; flirting with all-time highs.

I am inappropriately exuberant about:

• the US economy
• Apple
• the Bakken
• Grapevine, TX

This is not an investment site. Do not make any investment, financial, travel, or relationship decisions based on what you read here or think you may have read here.

At 28, Active Rigs In The Bakken Hit A New Post-Boom Low -- April 19, 2016; Sinclair Remains Active -- Another Five (5) Permits

Active rigs (one can track the record number of active rigs -- high/low -- here):

	4/19/2016	04/19/2015	04/19/2014	04/19/2013	04/19/2012
Active Rigs	28	93	188	185	213

Wells coming off the confidential list Wednesday:

• 30947, 1,928, Whiting, P Bibler 155-99-15W-31-7-14H, Stockyard Creek, a big well, the P Bibler wells are tracked here, t10/15; cum 94K 2/16;
• 31936, 2,204, BR, CCU Plymouth 11-29MBH, Corral Creek, 2/16; cum 6K over 9 days;
• 32051, SI/NC, Enerplus, Dance Hall 14793-06B-07H, Moccasin Creek, no production data,

Five (5) new permits --

• Operator: Sinclair (Sinclair permits tracked here)
• Field: Lone Butte (McKenzie)
• Comments: these brings the total to 13 new permits for Sinclair in the last three days

Five (5) permits renewed --

• Whiting (4), four P Ellis wells, Williams County
• White Rock, a BSMU permit in Billings County 

Newfield cancels two (2) permits, two Sand Creek Federal permits in McKenzie County

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30947, see above, Whiting, P Bibler 155-99-15W-31-7-14H, Stockyard Creek:

Date	Oil Runs	MCF Sold
2-2016	14296	30121
1-2016	20008	29509
12-2015	20955	26668
11-2015	25076	28069
10-2015	12668	3045

Sinclair Permits -- 2016

April 19, 2016: it should be noted that Sinclair has no active rigs in North Dakota at the moment.

Date Permit	File Number	Status/IP		Legal Name	County	Field	Section Sited
15 Jan 16	32461		Sinclair	Crosby Creek 4-5H	DUN	Little Knife	5-146-97
7 Mar 16	32591		Sinclair	Lizzie Rae 8-17-1H	MCK	Lone Butte	8-147-98
7 Mar 16	32592		Sinclair	Lizzie Rae 8-17-2H	MCK	Lone Butte	8-147-98
7 Mar 16	32593		Sinclair	Lizzie Rae 8-17-3H	MCK	Lone Butte	8-147-98
7 Mar 16	32594		Sinclair	Lizzie Rae 8-17-4H	MCK	Lone Butte	8-147-98
7 Mar 16	32595		Sinclair	Lizzie Rae 8-17-5TFH	MCK	Lone Butte	8-147-98
7 Mar 16	32596		Sinclair	Lizzie Rae 8-17-6TFH	MCK	Lone Butte	8-147-98
7 Mar 16	32597		Sinclair	Lizzie Rae 8-17-7TFH	MCK	Lone Butte	8-147-98
14 Apr 16	32654		Sinclair	Yauch 03-04-2H	MCK	Lone Butte	3-147-98
14 Apr 16	32655		Sinclair	Yauch 03-04-3H	MCK	Lone Butte	3-147-98
14 Apr 16	32656		Sinclair	Yauch 03-04-4H	MCK	Lone Butte	3-147-98
14 Apr 16	32657		Sinclair	Yauch 03-04-5H	MCK	Lone Butte	3-147-98
14 Apr 16	32658		Sinclair	Yauch 03-04-6H	MCK	Lone Butte	3-147-98
14 Apr 16	32659		Sinclair	Yauch 03-04-7H	MCK	Lone Butte	3-147-98
18 Apr 16	32660		Sinclair	Horovitz 10-09-2H	MCK	Lone Butte	3-147-98
18 Apr 16	32661		Sinclair	Horovitz 10-09-3TFH	MCK	Lone Butte	3-147-98
19 Apr 16	32662		Sinclair	Forest USA 2-2H	MCK	Lone Butte	3-147-98
19 Apr 16	32663		Sinclair	Forest USA 3-2H	MCK	Lone Butte	3-147-98
19 Apr 16	32664		Sinclair	Forest USA 4-2H	MCK	Lone Butte	3-147-98
19 Apr 16	32665		Sinclair	Forest USA 5-2TFH	MCK	Lone Butte	3-147-98
19 Apr 16	32666		Sinclair	Forest USA 6-2TFH	MCK	Lone Butte	3-147-98

The Sinclair pads in Lone Butte oil field:

Filloon's Update On The Bakken: Focus On Proppant -- April 19, 2016

Summary:

• ceramic proppant demand is down 49% year over year
• operators continue to increase proppant per well, but are choosing to use more frac sand
• a large number of mega-fracs use little to no ceramic proppant
• the current ceramic proppant market is oversupplied and higher oil prices probably will not right the industry

Archived.

Of the 233 wells in North Dakota using 8 million lbs of proppant or more only five used any ceramic proppant. Some of this is skewed due to EOG being the main Mega-Frac producer, but it speaks volumes when we see this many use only sand.

Here We Go! -- Road Restrictions In The Bakken -- April 19, 2016

Active rigs:

	4/19/2016	04/19/2015	04/19/2014	04/19/2013	04/19/2012
Active Rigs	28	93	188	185	213

From The Williston Herald:

A factor in North Dakota’s favor is the cost to drill a well in the Bakken has decreased substantially. Helms, who met with several oil company CEOs in Houston in February, said industry leaders say the Bakken is the No. 1 place they want to invest when the price of West Texas Intermediate oil is at least $60 a barrel.

“I think we need to have in our minds that we’re going to use this slow time to catch up on everything because it’s coming back and it’s going to come back with a rush,” Helms said.

Former Williston Mayor Ward Koeser, among those in the audience, said a population of 80,000 was suggested by some developers several years ago as oil development began to ramp up.

It looks like Sinclair is not waiting for $60 oil. In the past two business days Sinclair, relatively inactive during the boom, has eight more permits.

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LA Times Editorial Board Split/Confused?

Op-ed: $15 minimum wage well-intentioned but a bad idea. Wow! Really? From The Los Angeles Times.

With the exception of some very cynical labor unions that support a higher minimum wage because it amounts to an indirect subsidy of their members' earnings and some politicians who know it is bad economics, the Fight for 15 movement is entirely well-intentioned.

But good intentions do not automatically translate into good policy.

Last week, this newspaper reported that California's recent decision to raise the minimum wage to $15 by 2022 is already having nasty consequences.

“I used to pay $5 to get this sewn, and now it costs $6.50,” Felix Seo, the owner of L.A.-based Joompy told the Times, holding up a patterned dress. “But my customer doesn't want to pay that, so I can't sell it anymore.”

To stay in business, Joompy will probably have to start importing its clothes. “It will be impossible to make clothes in Los Angeles,” Seo said.

Don't blame the GOP for this. I'm amazed the editors at the Los Angeles Times let this be published. Sounds like something from Fox News.

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Brit Lit

Notes to the Granddaughters

I'm re-reading Dan Jones' The War of the Roses. The more I read the more I realize that Shakespeare scholars may "know" "Shakespeare," but they certainly don't appear to "know" British history. That is not surprising; everyone has blind spots. Lord knows, I have many. There is one exception to the observation that Shakespeare scholars don't appear to know British history (or are unable to connect dots): Brenda James.

At one time I cared not one bit for Brit Lit or Shakespeare although I have to admit, I really enjoyed the enthusiasm my college professor, Professor Art Huseboe, had for teaching freshman literature and Shakespeare. But for decades that was about it.

Then everything changed in 2002 or thereabouts when the USAF sent me to northern England multiple times over the next several years. Among the many, many things that came from those temporary assignments was a love for Arvo Pärt, and especially Te Deum.

Throughout the Dan Jones' book mention is made of Te Deum being performed for coronation events. I was fortunate enough to attend a live performance of Te Deum at Ripon Cathedral during one of those temporary assignments.

In the video below, I particularly enjoy the part that begins at about 4:20 but to experience begin at least a half-minute earlier. Arvo Pärt, himself, has a colorful history.

Te Deum, Arvo Pärt
There's at least a half dozen negative things I can say about the performance at the link (embedding not allowed) but without question one of the most incredible performances nonetheless, and one I can watch over and over: https://www.youtube.com/watch?v=4M7gKZqgHn4.

Random Notes Before I Get Started, Part II -- The Apple Page -- Nothing About The Bakken -- April 19, 2016

I apologize. I just can't get started on the Bakken this morning. Too much else going on. I see the price of crude oil is up 3%. The shorts are getting squeezed. Thank you and a shout-out to the Kuwaiti blue collar workers, doing what Saudi princes couldn't do. LOL.

On another note, Business Insider is reporting:

Apple said on Tuesday that it will update its MacBook. 

As expected, it includes a new Intel processor, and it now comes in a "rose gold" color option. According to Apple, the new MacBook will use a "sixth-generation" Intel Core M processor, which can deliver speeds up to 3.1 GHz. The chips that Apple is using will also have improved graphics cards performance.

The new chip will enable the 2016 MacBook to squeeze out 10 hours of wireless web browsing time, or 11 hours of movie playback. 

The laptop starts at $1,299 for a configuration with a 2.2 GHz chip and 256GB of storage. Users can also opt for a higher-end model with a faster chip and 512GB of storage for $1599. 

Like before, Apple's MacBook only comes with one port: a single USB-C port that is used not only for charging the notebook, but also for data transfer and adding an additional monitor. 

For the first time, the MacBook comes in a "rose gold" color finish, a metallic color that looks a lot like pink.

"Everyone" -- including Mr Obama a couple of days ago -- complains about Time Warner Cable and their excessive costs.  I must be one of the few that loves TWC. In our area, they are incredibly responsive. 

During our move, I learned that we were overpaying TWC for what we were getting. The nice TWC woman noticedd that when I called to have my service transferred to the new apartment. She said, "Oh, my gosh, do you know you are overpaying for your service?" 

So, that was fixed. LOL.

TWC came out a week later and hooked our system up in the new apartment. I could have done it myself but TWC likes to keep that control, apparently. Apparently that's how they are able to justify a $150 modem to be rented at $12.95/month.

The technician was relatively new but I learned that the one thing new technicians at TWC are taught: splitters. Every time a TWC tech comes out to the house, the first thing they do is look for the "master outlet" and then put in another splitter. 

The other thing about "new techs," especially those under the age of 23: they tell you really neat things. I assume a 23-year-old assumes a senior citizen has no clue. The 23-year-old would be correct. Unbeknownst to me, one can get a gazillion channels on wi-fi devices at home if a subscriber to TWC. I did not know that.

My wife loves it. She can now watch ABC News With David Muir from any room in the house on any mobile device we have. 

I hate to see her carrying her MacBook Air into the kitchen to watch the cooking channel, so I'm going to get her the iPad Pro. I hadn't paid much attention to the iPad Pro and had never planned to get it, but now that we have access to 500 TV channels in every room of the apartment on every mobile device, the iPad Pro is a must-have. 

So, now I'm reading about the iPad Pro. Why wasn't I told how incredible this machine was? Wow. I may get it for my wife, but my hunch is Sophia will get the most use out of it, using the Apple Pencil.

Random Notes Before I Get Started -- April 19, 2016 -- Nothing About The Bakken

Oh, but first, let's check the market. It looks like the Kuwaiti blue-collar workers -- on strike for the third day -- are saving Saudi's butt ... for now.

I got my tire fixed, as I noted yesterday. Today was a beautiful ride. There are two Starbucks restaurants in my neighborhood, but for the ride, I either go to the one in Southlake (5.0 miles) or the one in Grapevine (5.2 miles). I now prefer the Grapevine ride, which is flatter and much more interesting. The route description:

After a short block through some retail after leaving the apartment complex, I'm on a high-speed four-lane divided highway for about half-a-mile. Sporty. Especially during the winter. Today, I stopped twice to take some photos, see below.

Then a broad boulevard as I loop around DFW airport and along/through a nicely manicured industrial park. This segment is actually composed of a north-south segment and an east-west segment, totaling about a mile and a half, I suppose. I used to think it was boring, but I enjoy it now.

Then slightly uphill toward downtown Grapevine, Main Street. The whole distance of Main Street might be 1.5 miles and is all retail, all fun, all interesting. The banners across the street announce the Wine Fest, the Chocolate Fest, the Beer Fest, the day outing with Tomy Train, the semi-annual Art Festival, and the Cruz-Trump Martial Arts Fest.

I made up that last "fest." But if it happens, it will happen at a fest in Grapevine.

Then a last mile or less down "Wall Street" to the Starbucks at the corner of Texan Trail and Northwest Highway. 

I wish I had been filming with my helmet-mounted GoPro this morning. I left earlier than usual and had a lot of fun "working" with 18-wheelers going through the industrial zone along the DFW loop. I have a rule: the 18-wheelers have the right-of-way regardless of what the traffic lights suggest.

I try my hardest to let moving semi-trucks (and why are they called "semi's"?) keep up their momentum so if I'm heading straight and have the right-of-way but the truck is turning hard right, I always hold back, signal to the trucker to keep moving, and everyone's happy.

Today, the highlight was splitting the gap between two trucks as they both kept up their momentum turning right and I headed straight.

All's well that ends well. Or so they say.

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Texas Wild Flowers

Set #1, 2016

Set #2, 2016

Texas wildflowers are in bloom. The best locations are along the interstate highways, but these will have to do for now: