Cleaning Out The In-Box, October 6, 2018

Dividend increase: did COP increase its dividend from $0.285 to $0.305? Apparently so. A 7% increase. More later, perhaps.

Ponzi not: The Bakken is not a Ponzi scheme: from SeekingAlpha.

A must read. Addresses many issues regarding shale oil, including:

• the "Red Queen" -- the decline rate
• cash flow

Archived

Summary:

• more than two years into the oil upswing, shale oil developers are thriving, with many of them either already generating or on the way to generate positive free cash flow
• however, some investors still cling to the notion that shale developers run on an ever-faster treadmill in capital needs and thus operate a Ponzi scheme
• here, I intend to use empirical hard data to demonstrate shale oil as a Ponzi scheme is a pure fallacy which can potentially blind investors from seeing opportunities in shale.

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Yeah, Sure

Saudi Aramco IPO is still "on." From CNBC --

• Saudi Aramco IPO will happen by 2021, the kingdom's powerful Crown Prince Mohammed bin Salman says
• the king in waiting reiterated his belief that the company is worth $2 trillion
• Aramco had originally targeted a 2018 IPO, and analysts say a $1 trillion to $1.5 trillion valuation is more likely. 

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Miscellaneous 

 

NOG: additional $750 million credit facility through a syndicate of several banks. This, by the way, is why Congressional concern about "too big to fail" is misplaced. From the press release:

NOG announced that it has closed an agreement with Royal Bank of Canada, as administrative agent, and a syndicate of lenders under a new $750 million first lien revolving credit facility (the “new credit facility”). RBC Capital Markets, ABN AMRO, Capital One, Citizens Bank and Wells Fargo Securities are the joint lead arrangers and joint book runners. The new credit facility matures in October 2023.

The new credit facility has an initial borrowing base of $425 million, with the next redetermination scheduled for April 1, 2019. Northern has drawn $50 million of borrowings at closing. Northern applied a portion of the initial proceeds, together with the net proceeds of its previously announced offering of senior secured second lien notes, towards the repayment and retirement of its term loan credit facility led by TPG Sixth Street Partners.

Politics: from a reader regarding Susan Collins, Brett Kavanaugh --

This is one of the most compelling, analytical political floor speeches I have ever heard.

Under the circumstances I was riveted until the very end. Senator Collins will vote for Brett Kavanaugh. Doing the Job of a U.S. Senator as the Constitution and Founders of our Country Intended.

https://youtu.be/ZUEPFO6zgGM. 

Right down the line. One of my favorite posts this past week. A reader agreed. Right down the line.

Tesla: analogy with Lethman Brothers collapse. From SeekingAlpha.

Ford: to downsize its salaried workforce.