Zavanna Reports Another Huge Well -- June 9, 2022

Default: two largest platinum and palladium refiners in Russia are beginning to default on payments. Link here.

Five Below: US discount retailer stumbles after cut to full-year guidance. Link here. 

TGT: to increase dividend by 20%.

INTC: problems have not gone away and may be getting worse -- Barron's. I track semiconductors here. 

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Back to the Bakken

Far Side: link here.

McKenzie County Farmer: now part of Fargo-based media conglomerate. Link here.

Data center: Kevin O'Leary announces a second data center in as many days. New data center will be in Montana. I bet he likes Montana's tax structure better than that of North Dakota.

• will use renewable hydropower from the Confederated Salish and Kootenai Tribes
• Flathead, MT
• from wiki:
• The tribes own and jointly operate a valuable hydropower dam, called Séliš Ksanka Ql'ispé Dam (formerly known as Kerr Dam). They are the first Indian nation in the United States owning a hydroelectric dam.O'Leary:
• why?
• NY: terrible for business
• NJ: terrible for business
• MA: horrifically terrible for business
• CA: not in business
• MT: friendly regulatory climate

Flathead Lake, yesterday, June 8, 2022: spring thaw -- very cold glacier water from Glacier National Park running into Flathead lake:

• https://youtube.com/shorts/Y3W_wWFAl5A?feature=share.
  

WTI: $122.10.

Active rigs: 40 or thereabouts.

Wednesday, June 8, 2022: 11 for the month, 148 for the quarter, 308 for the year 

• 38480, conf,  WPX, Hall 14-15HY, McGregory Buttes, no production data,
  
• 38132, conf,  CLR, Dinnis FIU 7-8H1, Cedar Coulee, no production data,
  
• 37187, drl/A,  Zavanna, Edgar 10-3 5H, Poe, first production, 12/21; t--; cum 136K 4/22;
  

RBN Energy: western midstream presses Permian advantages to offset declines.

We’ve written a lot lately about how U.S. E&Ps, whipsawed over the last decade by extreme price volatility and negative investor sentiment, have adopted a new fiscal discipline that de-emphasizes production growth and prioritizes generation of free cash flow to reduce debt and reward shareholders. 

But what about midstreamers? They too have been buffeted in recent years by volatile commodity prices, eroding investor support, shifting upstream investment patterns, and finally, a global pandemic. Midstream companies face a different set of challenges than oil and gas producers in repairing their balance sheet and restoring investor confidence, however, mostly because midstream investment decisions are determined both by downstream market changes and by E&Ps’ development and production activity — including producers’ ever-increasing focus on the Permian at the expense of other basins. 

In today’s RBN blog, we discuss highlights from RBN and East Daley’s Spotlight Report on Western Midstream Partners and how the master limited partnership has been working to reduce its debt and make the most of its strong base in the Permian’s Delaware Basin.

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Initial Production

The well:

• 37187, drl/A,  Zavanna, Edgar 10-3 5H, Poe, first production, 12/21; t--; cum 136K 4/22;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2022	28	20108	20350	17076	50860	41302	9489
BAKKEN	3-2022	31	34649	34517	26142	74498	61255	13166
BAKKEN	2-2022	28	31785	31770	25515	56360	44399	11891
BAKKEN	1-2022	31	34185	34147	29753	49593	29241	20275
BAKKEN	12-2021	13	15411	15000	18544	17349	8835	8462
BAKKEN	11-2021	0	0	0	0	0	0	0