WTI Slips Below $79; Thirty-four Active Rigs; Three Wells Coming Off Confidential List -- January 10, 2022

EPD: announces a $3.25 billion acquisition of Navitas Midstream. Accretive in 2023.

• provides an entry point into the Midland Basin for EPD
• 1,750 miles of pipeline; 1 billion cubic feet/day of cryogenic natural gas processing capacity with the completion of the Leiker plant, expected to be completed 1Q22;
• should be immediately accretive to distributable cash flow
• DCF accretion in the rand of 18 cents to 22 cents / unit in 2023
• EPD just announced a 3.3% dividend increase; has the highest credit rating within the midstream sector according to at least one analyst;

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Back to the Bakken

Active rigs:

$78.44	1/10/2022	01/10/2020	01/10/2019	01/10/2018	01/10/2017
Active Rigs	34	55	66	53	36

Monday, January 10, 2022: 11 for the month, 11 for the quarter, 11 for the year

• 37234, conf, Bruin, Wm Polar 157-101-24C-13-7B,

Sunday, January 9, 2022: 10 for the month, 10 for the quarter, 10 for the year

• None.

Saturday, January 8, 2022: 10 for the month, 10 for the quarter, 10 for the year

• 38351, conf, Resonance Exploration, Resonance Wilmot 8-27H,
• 27002, conf, CLR, LCU Reckitt Federal 5-22H1,

RBN Energy: US LNG feedgas demand looks primed to build on record highs. 

Global natural gas prices went through the roof in December, and while prices are back down from those highs, they remain incredibly strong compared to years past and the economics for U.S. 

LNG exports are riding high. LNG exports have been in the money for quite some time, but feedgas deliveries to U.S. export terminals throughout the spring and summer of 2021 were somewhat lackluster as maintenance and operational issues at terminals and nearby pipelines kept feedgas from hitting its full potential. 

Gas deliveries to those terminals began climbing in the fall, first back to full utilization levels, and then beyond. 

Much of the record feedgas demand has been from commissioning activity at Sabine Pass Train 6, which produced its first LNG in December and is on track to begin full service early this year. But beyond that, operators have been pushing the existing fleet of terminals to operate at peak levels and produce additional cargoes, likely for sale in the spot market or on short-term contract, an extremely profitable endeavor given the prices in Europe, where most if not all destination-flexible cargoes have headed. In today’s RBN blog, we look at what’s driving LNG feedgas demand to its recent highs and how much higher it could go.