Thursday, August 8, 2019

Energy Notes From All Over, Part 1 -- August 8, 2019

Re-look? Saudi's bookkeeping is a lot like their annual estimate of their reserves. No matter how much changes, they never change. At $80-oil, the Prince Salman-Saudi-Aramco-5% IPO valued the world's largest oil company at $2 trillion. At $60-oil, the world's largest oil company is still valued at $2 trillion. Reuters.  But you know, Prince Salman may be right this time. What was the price of oil in "early 2016"? Depending on the definition of "early 2016," oil was selling for less than $40 at that time. Link here, click on 5-year chart.

Ethanol margins at multiyear lows: rising corn prices and oversupply of ethanol. Link at EIA.

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China: crude oil imports jump 14% in July. Headline. 

Chevron: warns that earnings could be hurt due to "developments" in Venezuela. Too many eggs in one basket? Venezuela likely (?) to nationalize the company's assets. No link. Story everywhere.

China: could start slowing imports of crude oil from USA. No link. Story everywhere.

Cheenazuela: and then look at this -- where would China get that oil if it doesn't come from US? From Venezuela. It doesn't take a rocket scientist to connect the Chevron-Maduro-China dots.


Oasis earnings, 2Q19: I missed this -- reported earlier this week -- a reader reminded me -- press release (some numbers rounded):
  • net cash: $214 million
  • adjusted EBITDA: $250 million 
  • production: 85,000 boepd, an increase of 6.3% from 2Q18
  • July, 2019, production averaged: almost 90,000 boepd
  • Permian (Delaware) well costs targeted at almost $10 million -- 10,000-foot laterals
  • LOE: $7.32/boe
Oasis earning, 2Q19, other sources:
  • Zacks:
    • EPS: 3 cents/share beating consensus of 2 cents/share; compares to 10 cents / share a year ago
  • shares drop 29% on updated guidance, Motley Fool
  • transcript at SeekingAlpha -- items specificd to the Bakken -- 
    • Bakken well costs average just less than $8 million; a path toward $7 million by end of 2019
    • the Wild Basin (in the Bakken) will become less strategic to Oasis going forward
At least it was not a "Whiting loss." 

And that was it.

Oasis shares trading under $3.00.

That which does not kill us makes us stronger. 

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