Henry Hub Flows Hit 13-Year Highs; Two Wells Coming Off Confidential List; Penn Virginia Becomes Ranger Oil -- October 7, 2021

Firster things first:

• ARKK / Cathie Wood leaving NYC; heading to St Petersburg, FL -- wow!

First things first: in my final note yesterday, I suggested today would be a great day for investors. So far, so good.

• Dow implied open: +228 points
• but did you see this: Bitcoin surging; this is simply incredible; it's down a thousand dollars right now but it's still flirting with $54,000
• Bitcoin trading above $54,500 Thursday, up 8%; Ethereum, Dogecoin up 7% and 2%, respectively;
  
• raising the debt limit "cheered"; and if I read it correctly, raising it once now, will prevent doing this again in the near term; in other words -- and I may have this wrong -- the debt limit was raised for calendar year 2021; and has been raised for late in calendar year 2022. 
• if accurate, and I may be wrong, but if accurate, I reiterate, for all the crap Biden gets, he's having a pretty good year -- at least for investors --- perhaps not so much for everyone else.
• update: most recent reading of the tea leaves -- debt limit raise will only be short-term, taking "us" through December, 2021
  

Not new: don't say "master suite." Realtors revisit the power of words. Link here. I was unaware of this but it is not new. It goes back to at least the 1990's. But I did not know. We still use the phrase.

Europe: pretty amazing. Everyone is falling all over themselves praising Putin and his promise to save Europe.

Penn Virginia/Ranger, link here:

• plans name change: will soon be called Ranger Oil Corp
• reflects oil and natural gas operations in Texas
• will officially rebrand as Ranger Oil Corporation
• began trading under the NASDAQ ticker symbol of ROCC effective October 18, 2021
• rebranding to be fully complete prior to year-end 2021 
• link here;
  
• plans more Eagle Ford growth
• recently acquired Lonestar Resources
• sales of 38,000 boepd
• capacity to be a consolidator in the Eagle Ford market
• Lonestar acquisition added 250 well locations to Penn Virginia's roughly 500 (50% increase)
• much more at the link; a wordy article that's a bit hard to understand; takes too much time to read

********************************
Back to the Bakken

NOG: announces acquisition;

• $154 million bolt-on properties-deal
• Williston basin
• seller(s) not identified
• 400 producing wellbores
• spread across the Bakken: WMS, MCK, MNT, and DUN counties
• interestingly, number of acres not provided
• > 4,500 boe per day (2-stream, ~65% oil)
• $154 million / 4,500 boepd = $34,000 / flowing boepd (in line)
• management to submit 33.3% increase to the quarterly dividend to six cents per share upon closing

KMI: will lay a short pipeline in Williams County to connect to the DAPL. Link here. Direct to Amy R. Sisk here.

Active rigs:

$76.12	10/7/2021	10/07/2020	10/07/2019	10/07/2018	10/07/2017
Active Rigs	26	13	57	64	59

Two wells coming off confidential list 

Thursday, October 7, 2021: 10 for the month, 10 for the quarter, 234 for the year:

• 37197, conf, Slawson, Mauser Federal 5-18-17H, North Fork, no data, scout ticked not updated;
  
• 30201, conf, Whiting, Klose 21-27-3H, Glass Bluff, nice production, scout ticket not updated;
  

These are the last wells coming off the confidential list through the end of the week and into next week. No wells are coming off the confidential list for the four days starting tomorrow. 

RBN Energy: Henry Hub physical flows hit 13-year highs amid rising LNG exports. Archived.

Henry Hub has long been the center of the universe for the Lower 48 natural gas market, but what it represents has changed dramatically since its inception, particularly over the past decade. It has gone from being a benchmark pricing location for a vibrant producing region, to being situated in the fastest-growing demand region and a key hub for wheeling feedgas supply to the proliferating LNG export facilities in Louisiana — all with little change to its infrastructure. As this occurred, the gas price at Henry has gone from being among the lowest in the country to one of the most premium. Physical volumes exchanged at the hub, which have always been dwarfed by financial trades there (and still are), have climbed in recent years and are now at the highest levels since 2008. Moreover, the inflows are concentrated on just a couple of pipelines, and those key interconnects are at risk of becoming constrained. In today’s RBN blog, we provide an update on the shifting gas flows at Henry Hub.  

The last time physical flows at Henry Hub were this high, in the 2008-09 time frame, Gulf of Mexico offshore natural gas production was well over 6 Bcf/d; the Haynesville Shale in western Louisiana was still in its early stages of growth and volumes had just started to take off; the Marcellus Shale in Appalachia was still in its infancy; and all the offshore and onshore supply converging on the pipeline network in Louisiana, including Henry Hub, was flowing northbound to serve the gas-thirsty Northeast markets. Now, offshore production is less than half of what it was then, but Haynesville production hit a record 13.4 Bcf/d in September, according to the Energy Information Administration’s Drilling Productivity Report (DPR). The same pipelines that used to flow north now bring 3-5 Bcf/d of Marcellus/Utica gas supply into Louisiana, mostly via Perryville Hub in northeastern Louisiana — and, yes, Henry Hub in the southeast — to meet growing demand along the Gulf Coast, primarily feedgas for LNG exports.