No Wells Coming Off Confidential List Today -- October 12, 2022

EOG: interesting data point but some context needed.

• EOG paid almost $1 billion to settle hedges in 3Q22;
• EOG outstanding shares: 588 million 
• impact per share: $847 million / 588 million shares = $1.44 / share in one quarter
• revenue, June 2022
• $8.69 billion, up 92% year/year
• $8.69 billion / 588 million = $14.80 / share
• $1.44 / $14.80 = 10%
  

Apple, Inc:

• analysts have no idea how many Macs were shipped last quarter;
• iPhone ownership among teens hits 87%, more than double since 2012;

Intel: cutting thousands of jobs to cut costs. Probably corporate / front office, not software engineers.

Retailers: still in disarray. "Wrong merchandise" on the floor. 

• Anticipate huge discounts leading into holiday season.
  

Disneyland: Disney raises prices in southern California theme park. LA Times.

Dividend note: Cardinal Energy Ltd (Canada) confirms new dividend rate for October, up 20% to six cents; yielding 8.6%. 

Politics: Tulsi Gabbard truly confused.

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Back to the Bakken

The Far Link: link here.

Active rigs: 41.

WTI: $88.97

Natural gas: $6.714.

No wells coming off confidential list today. 

RBN Energy: project eyes using ethanol to make bioethylene, renewable alkylate, SAF, part 2.

In these uncertain times, with the energy transition in flux and a recession looming, it takes moxie for a company to make a major capital investment in an energy-related project, especially one that could arguably be called the first of its kind.

But that’s what’s happening at a site along the Houston Ship Channel (HSC) in Pasadena, TX, where Next Wave Energy Partners, which is now completing an ethylene-to-alkylate plant, is planning an adjoining ethanol-to-ethylene facility that will enable the company to produce bioethylene, renewable alkylate and/or sustainable aviation fuel (SAF), depending on market demand, production economics and other factors.

In today’s RBN blog, we discuss the ins and outs of Next Wave’s Project Lightning.

In part 1, we took an in-depth look at the company’s 28-Mb/d ethylene-to-alkylate plant — dubbed Project Traveler — which during the coming driving season will start producing pure alkylate, an octane-boosting gasoline blendstock, from NGL-based ethylene.

More specifically, the plant’s dimerization unit reacts ethylene to form butylene, and its alkylation unit reacts isobutane with butylene to form pure alkylate, with no material byproducts. The thinking behind the project is that a combination of NGL production growth and new Gulf Coast ethylene supply — plus increasing demand for alkylate — would be a win-win-win for ethylene producers, refiners and Next Wave itself.

We noted that high octane, low Reid vapor pressure (RVP) and low sulfur content are three of the most desirable qualities for gasoline blendstock, and alkylate (typically produced as part of the crude oil refining process and representing about 15% of the total gasoline pool) has perhaps the best combo of the three.