Sempra To Sell 10% Interest In Infrastructure Partners -- $1.785 Billion -- SeekingAlpha -- December 21, 2021

CNBC Covid-19 catastrophes: Carl Quintanilla tests positive; probably "caught it" from Jim Cramer. Read (past tense) that on twitter, need to fact check. I haven't watched CNBC for over a week now and have watched it only one or two days since the flash crash after Thanksgiving. 

Apple: the other day, it was AirPods. Today it's the Apple HomePod

Amazon continues to lead the market for smart speakers and smart screens with devices like the Echo Dot and Echo Show, but Apple has nearly doubled its market share in this segment thanks to the HomePod mini.

Strategy Analytics estimates that Apple shipped 4 million smart speakers in the third quarter of 2021, taking a 10.2% share of the combined smart speaker and smart screen market. Google's Nest Mini was the top-selling device in the segment, followed by the HomePod mini and Amazon's fourth-generation Echo Dot.

Gasoline demand: link here -- according to GasBuddy data --

• Monday, yesterday: US gasoline demand jumped 6.8% from the prior Monday
• Monday, yesterday: 4.8% above the average of the last four Mondays
• Monday, yesterday; highest demand for a Monday since 2019 and beat the same Monday in 2019, pre-Covid

EU energy crisis: with Brent <$75 / bbl and natural gas at USD 340 per barrel, it would be less expensive to burn oil than natural gas to generate electricity. And, apparently, that's happening. In France, another oil burning power plant turned on in Europe. Others on twitter saying the same thing: switch from gas to oil is coming.

Sempra update:

• Sempra to sell a non-controlling 10% interest in Sempra Infrastructure Partners to a subsidiary of the Abu Dhabi Investment Authority for $1.785B in cash.
• This transaction implies an enterprise value for Sempra Infrastructure of $26.5B, including asset-related debt of approximately $8.6B.
• In October, company completed the sale of a 20% non-controlling interest in Sempra Infrastructure to a wholly owned affiliate of KKR.
• Proceeds from the sale will be used to help fund incremental capital expenditures at company's utilities and repurchase $500M of the company's stock.
•  SRE: dividend yield -- 3.4%. 

Diversions: LNG tankers starting to divert from Asia to Europe where prices are higher. Link to Argus.

Why oil and gas are here to stay: link to Julianne Geiger. Archived. 

Pemex:

• will require nearly $10 billion in financing next year; link here.
  
• about 10% less than this year;
• $10 billion / 1.8 million bopd / 365 days = $15 / bbl

Permian: still selling for upwards of $20,000 / acre. Link here.

• Earthstone buys Chisholm's Permian assets;
• $604 million
• 36,100 net acres
• $604 million / 36,100 = $17,000 / acre
• $604 million / 13,500 bbls = $45,000 / producing bbl

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Back to the Bakken

Active rigs:

$71.27	12/21/2021	12/21/2020	12/21/2019	12/21/2018	12/21/2017
Active Rigs	32	15	54	69	52

Two new permits, #38713 - 38714, inclusive --

• Operator: Murex
• Field: West Tioga (Dunn)
• Comments:
• Murex has permits for two Kayden Cole permits in SWSW 9-157-95; 
• the wells will be sited 301 FSL and between 826 FWL and 856 FWL; 

Three permits renewed:

• Enerplus: three Fort Berthold permits in Dunn County

Three producing wells (DUCs) reported as completed:
37324, 1,712, WPX, Patricia Kelly 2-1HUL, Antelope-Sanish, first production, 5/21; t--; cum 164K 10/21;
37831, 1,133, WPX, Dakota 1-36HW, Mandaree, first production, 4/21; t--; cum 178K 10/21;
36071, 2,587, WPX, Andesite 147-93-09C-04H, Moccasin Creek, first production, 5/21; t--; cum 75K 10/21;

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Results

Early production:

• 37324, Antelope-Sanish: fracked 4/13/21 - 4/19/21; a small frack, 4.95 million gallons of water; 82.95 fresh water by mass; 16.33% sand by mass;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
SANISH	10-2021	31	20608	20600	12657	48808	48342	0
SANISH	9-2021	30	23918	23772	13566	52663	52376	0
SANISH	8-2021	31	26261	26261	18622	30459	30206	0
SANISH	7-2021	31	26264	26261	18622	24300	24007	0
SANISH	6-2021	30	30506	30588	27416	38435	34622	0
SANISH	5-2021	20	35961	35711	32016	41754	37541	0

• 37831, Mandaree, fracked 3/7/21 - 3/19/21; a small frack, 5.4 million gallons of water; 83.92% water by mass; sand, 15.3% by mass;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	10-2021	31	31344	31290	18343	47190	47030	0
BAKKEN	9-2021	30	29635	29594	15784	32280	32125	0
BAKKEN	8-2021	31	25499	25426	22828	25259	25098	0
BAKKEN	7-2021	31	24553	24607	10877	26104	25943	0
BAKKEN	6-2021	30	21864	21855	32071	21749	19259	0
BAKKEN	5-2021	31	24898	24849	42441	25898	23073	0
BAKKEN	4-2021	26	20494	20424	43574	18588	15808	460
BAKKEN	3-2021	0	0	0	0	0	0	0

• 36071, Moccasin Creek: fracked 4/7/21 - 4/22/21; very small frack, 4.9 million gallons of water; fresh water, 50% by mass; produced water, 39.4% by mass; a second frack report, same dates, 4/7/21 - 4/22/21; 8.51 million gallons of water; exact same percentages of water / sand by mass;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	10-2021	28	10636	10646	17304	8980	6277	784
BAKKEN	9-2021	27	11325	11295	14936	9119	6545	746
BAKKEN	8-2021	28	13879	13876	20078	10744	7061	1481
BAKKEN	7-2021	25	9458	9468	19474	7510	4972	945
BAKKEN	6-2021	12	7510	7541	9694	6273	4840	410
BAKKEN	5-2021	14	21834	21424	40784	17730	15123	0
BAKKEN	4-2021	0	0	0	0	0	0	0