Tuesday, December 21, 2021

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

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

Active rigs:

$71.27
12/21/202112/21/202012/21/201912/21/201812/21/2017
Active Rigs3215546952

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;

 **************************************
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;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH10-20213120608206001265748808483420
SANISH9-20213023918237721356652663523760
SANISH8-20213126261262611862230459302060
SANISH7-20213126264262611862224300240070
SANISH6-20213030506305882741638435346220
SANISH5-20212035961357113201641754375410
  • 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;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-20213131344312901834347190470300
BAKKEN9-20213029635295941578432280321250
BAKKEN8-20213125499254262282825259250980
BAKKEN7-20213124553246071087726104259430
BAKKEN6-20213021864218553207121749192590
BAKKEN5-20213124898248494244125898230730
BAKKEN4-2021262049420424435741858815808460
BAKKEN3-20210000000
  • 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;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-20212810636106461730489806277784
BAKKEN9-20212711325112951493691196545746
BAKKEN8-2021281387913876200781074470611481
BAKKEN7-202125945894681947475104972945
BAKKEN6-20211275107541969462734840410
BAKKEN5-20211421834214244078417730151230
BAKKEN4-20210000000

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