Chevron Misses On Earnings -- January 28, 2022

Updates

Later, 1:27 p.m. CT: from twitter -- link here. 

Original Post

Release the kraken: new Covid variant identified. 

Ukraine: Russia mobilizing medics to join troops along the border. 

CVX misses. Now we know why the company pre-announced a dividend increase yesterday.

Link here.

CVX: anticipating 4Q21 earnings. IBD yesterday: estimate: $3.14 EPS. 

4Q21 EPS: $2.63 vs $3.15 estimate

Full year: $8.14 vs $8.15 estimate.

• Fourth quarter earnings of $5.1 billion; annual earnings of $15.6 billion

• Strong cash flow from operations of $29.2 billion in 2021

• Record free cash flow of $21.1 billion in 2021

• Dividends and share repurchases of $11.6 billion in 2021

COP: Maverick to buy some COP Permian Basin assets. Link here. Update, January 28, 2022, here.

• $440 million
• 144,500 net acres
• back-of-the-envelope: $3,000 / acre
• remember when Permian was selling for $30,000 / arcr
• at $3,000 / acre priced in same neighborhood as the better Bakken

Natural gas: that 60% surge at the close yesterday? Never mind. Had to do with expiring contracts.

• natural gas still up; and up another 3.55$ this morning; up 15 cents; trading at $4.435; but,
• not the 60% spike we saw yesterday;
• link here: 
• February delivery futures hit $7.346 / mmbtu, the highest intraday price since November, 2008, before falling back to $6.265
• move signaled a short squeeze ahead of the contract's expiration
• great graph at the link; after huge spike, dropped back to previous level;

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Back to the Bakken

Active rigs:

$87.42	1/28/2022	01/28/2021	01/28/2020	01/28/2019	01/28/2018
Active Rigs	31	13	53	65	57

Friday, January 28, 2022: 49 for the month, 49 for the quarter, 49 for the year

• 37985, conf, CLR, Clear Creek Federal 6-2H2, Westberg, no production data,
  
• 37906, conf, CLR, Charolais South Federal 8-10H, Elm Tree, no production data,
  

RBN Energy: how rocket technology could help power the energy transition.

Back in the early days of the Space Race, popular culture envisaged aerospace technology that might one day have us all zooming around town like George Jetson in his flying car. That hasn’t turned out to be the case, but developments that have evolved from rocket technology could one day play a different role here in the 21^st century, where producing cleaner power and managing the energy transition are two key global goals. In today’s RBN blog, we look at an innovative “bioenergy with carbon capture and sequestration” (BECCS) project being undertaken in California by Clean Energy Systems (CES) and its partners, how the company’s technology is designed to work, and what “carbon-negative energy” might mean.

The history behind CES starts with rocket pioneer Rudi Beichel, who worked under the famed Wernher von Braun and was one of 1,600 German scientists brought to the U.S. at the close of World War II as part of Operation Paperclip. Beichel played a critical role in the development of the U.S. space program during the height of the Cold War, helping to design the rocket that took Alan Shepard into space in 1961 and the engines that powered the Space Shuttle. The initial CES team of seven — each with a different specialty — was formed by Beichel in 1993 with an eye toward using the group’s aerospace expertise to develop new power plant technologies. It received its first patent in 1998, a year before Beichel died, and has continued to advance its technology through pilot projects and demonstrations, including U.S. Department of Energy (DOE) funding to develop its industrial-scale oxy-fuel turbine, which was successfully tested in 2013.