Wednesday, December 11, 2019

Could The Number Of Active Rigs Drop To Less Than 50 During The Winter; Wet Spring? -- December 11, 2019

EVs: EV sales in China slump

SUVs: bigger than ever. St Greta doesn't have a driver's license yet, but when she does, her vehicle of choice will be the new Chevrolet Tahoe. Black. With Tesla's shatter-proof windows.

But big mistake? GM doubles down on big SUVs to pay for tomorrow's electric cars. 

Truck sales? All I hear is "bad news" from the trucking industry -- but then this -- truck maker Paccar issues a special $2.30-per-share dividend to those holding the stock on December 20, 2019 -- a week from this Friday. Good luck to all. The special dividend is in addition to its regularly quarterly dividend, paying $1.28 per annum (1.58%). The stock is trading at about $81/share today.

Global warming? What global warming? Brazil ignores climate concerns. Full speed ahead. 

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

Chevron writes down $10 billion in assets/reserves. Shares off a whopping 0.7%. Tomorrow this news will be forgotten. See disclaimer.

In the money: Enbridge sees higher 2020 core earnings.  ENB up 0.41% today in a quiet market; trending toward $40/share. 52-week high, $39. Pays 6.32%. What's not to like? Canadian taxes. LOL. See disclaimer.

As long as we've gone this far, let's look at AAPL: up $1.50, had pretty much returned to its all-time high of $271.

Trucks: CAFE standards don't apply. Bigger SUVs on a truck platform? Enquiring minds want to know.

Back to the Bakken

Denbury, from a reader earlier today:
On December 9, 2019, Denbury Resources Inc finalized the offering of a voluntary separation program to certain eligible employees as part of the Company’s ongoing efforts to reduce costs.
One hundred company employees (approximately 12% of its workforce) voluntarily chose to participate in the VSP, comprised of employees both in the company’s corporate headquarters and in the field, with most of the impacted employees scheduled to terminate employment by the end of January 2020.
The company estimates that the aggregate cost of the VSP will be approximately $17 million for one-time cash payments for severance and related costs, which is expected to result in a pre-tax charge to earnings in the fourth quarter of 2019, with most of the cash paid out during the first quarter of 2020.
The company currently expects ongoing annual savings associated with the reduction in force to be approximately $21 million, with such savings allocated across general and administrative expense (approximately 45%), lease operating expense (approximately 35%) and capitalized costs (approximately 20%).
My reply, not ready for prime time:
All oil companies are in the process of cutting costs.
I forget when it was but I saw the thing back in the 80s (?) in North Dakota when oil was in the doldrums.
My dad had an office building in which he rented out the back to an oil company. When times were flush, he said, oil companies spent money "like crazy" (actually something about "sailors") but when times got tight, they could really, really cut back. Same thing now.
With regard to oil, I think investors are looking out to 2022. What, I think, will be most amazing, ND production will still do well -- maybe even set more production records -- despite cut in spending, fewer rigs, etc.
Active rigs:

Active Rigs5365524065

Wells coming off the confidential list -- Wednesday, December 11, 2019: 35 for the month; 240 for the quarter:
  • 36501, 526,  Koda Resources, Stout 2932-2TH, Fertile Valley, t9/19; cum 18K over 29 days;
  • 36182, drl, XTO, Olaf 42X-11C, Capa, no production data,
RBN Energy: announcement -- RBN School of Energy + International Now Online.

No comments:

Post a Comment