NOG: Permian Acquisition -- August 17, 2022

Portland, OR: bottom of the heap.

• link here.
• except for the headline and one data point, the story is worthless;
• emperor with no clothes
• the data was taken from 2019 and studied all the way up until this year. Out of 62 cities, Portland came in at No. 60. 
• Researchers say downtown Portland only has 41% of the activity it did in 2019.

Germany:

• shipping halted on Rhine
• Kaub: 50 miles west of Wiesbaden; about 2/3rds of the way to Switzerland
• similar to stopping barges on the Mississippi at St Louis, but economically, so much worse
  

Kaub is the home of the Kaub gauging station, a "decisive" Rhine water level metering site. 

Kaub is located at the shallowest part of the Middle Rhine; ships with freight from the ports on the North Sea have to pass Kaub on their way to the southwest of Germany, where a major portion of the German industry is located. Once the level at the gauge passes the 78 cm mark (this is not the actual depth of the river), a low water level threshold is declared. At this level, due to much lower possible load, four time more barges are required to transport the same volume of goods as compared to the high (250 cm) level.

Europe:

• link here, and, here.

High-grading crude oil:

• I haven't read the article yet, but one wonders if the Bakken is not the gold standard for high-grade crude oil?
• light oil
• flaring minimized 
• EOR
  
• see RBN Energy below

TGT: a real debacle

• we talked about Target before and inventory control the past six months
  
• buying opportunity? Was this a one-off?
• down 2.5% in pre-market trading and well off its 52-week high
• what TGT does with its dividend will mean much more than its guidance
• but look at this: same-store sales rose 2.6% vs expectations of 2.8%;
• second consecutive significant earnings miss
• net sales: $26 billion vs. $25.84
• comparable sales: 2.6% vs 2.84%
• margins: 21.5% vs 24.2% (as a reminder, AAPL has margins of over 40%)
• operating income: $321 million vs $534.8 million
• EPS: 39 cents vs 73 cents (wow)
• again, inventory control was the big problem
• one wonders: does Amazon have a problem with inventory control?
• profit fell nearly 90% year-over-year 
• earnings expectations missed by 46%

NOG:

• $110 million
• Priced at high end.
• $68,000 / net acre.
• $61,000 / flowing boepd.

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Back to the Bakken

The Far Side: link here.

WTI: $86.52. Has the "slide" stopped?

Natural gas: $9.440. Trending toward $10? It's hard to think we won't hit $10 this autumn.

Active rigs: 46

Thursday, August 18, 2022: 11 for the month, 42 for the quarter, 381 for the year

• 38369, conf, CLR, Fuller 6-2H1,
  

Wednesday, August 17, 2022: 10 for the month, 41 for the quarter, 380 for the year

• 38002, conf, Hess, CA-E Burdick-LE-155-95-29H-1,

RBN Energy: high-grading crude oil production assets to reduce GHG emissions. Archived.

There’s a growing acknowledgment in the U.S., Europe and elsewhere that crude oil will remain an important part of our energy future for decades to come. At the same time, however, the drive to decarbonize will continue, and as part of that effort, oil producers will be working to ratchet down their greenhouse gas (GHG) emissions. A lot of that will be achieved through the purchase of carbon offsets or the use of carbon capture and sequestration (CCS), but another approach is for producers to “high-grade” their portfolios by divesting production assets that generate inordinately high volumes of carbon dioxide (CO₂) and methane during production and investing instead in assets with much lower carbon intensity. In today’s RBN blog, we discuss the push by some producers to shift to “lower-carbon oil.”