Several Wells Comiing Off Confidential List Over Weekend -- October 3, 2022

Russia goes nuclear? In The [London] Guardian -- US would destroy Russia's troops if Putin uses nuclear weapons in Ukraine.

Ukraine: 

Ukrainian forces achieved their biggest breakthrough in the south of the country since the war began, bursting through the front and advancing rapidly along the Dnipro River, threatening to encircle thousands of Russian troops.

Ukraine: it's now being reported that "a Russian nuke train" is now rolling. This Russian nuke train has tanks that carry tactical nuclear shells. My hunch: there are now serious conversations in the Pentagon about pre-positioning tank-killing A-10s in Ukraine, or Poland.

OPEC: will Russia attend the "emergency" meeting to cut production?

Fracking: while Europe banned fracking; the US transformed the technology. 

Speaking of which -- lately, we're not hearing a lot of politicians talking about banning fracking. I wonder if that has anything to do with $5-gasoline across the US and $7-gasoline in California.

Focus on fracking: overnight edition. 

• US oil supplies are at a new 19½ year low; 
• SPR is at a new 38 year low; 
• gasoline supplies are at a 10 month low; 
• total oil + oil products supplies are lowest in nearly 14 years…
  

******************************
Back to the Bakken

The Far Side: link here.

Active rigs: 45.

WTI: $83.13. Up almost 5%; up $3.64.

Natural gas: $6.565. Is Europe in better shape than some analysts think?

Tuesday, October 4, 2022: 8 for the month, 8 for the quarter, 453 for the year
38805, conf, Crescent Point Energy, CPEUSC Fantuz 6-13-24-158N-100W-MBH-LL,
36989, conf, Enerplus, Shad 149-94-36C-25H,
32123, conf, Whiting, Niemitalo 31-15-3XH,

Monday, October 3, 2022: 5 for the month, 5 for the quarter, 450 for the year
29791, conf, Hunt Oil, Trulson 156-90-11-14H-3,

Sunday, October 2, 2022: 4 for the month, 4 for the quarter, 449 for the year
36988, conf, Enerplus, Bluegill 149-94-36C-25H-TF,
30922, conf, BR, Saddle Butte 44-9 MBH,
29792, conf, Hunt, Palermo 156-90-2-31H 5,

Saturday, October 1, 2022: 1 for the month, 1 for the quarter, 446 for the year
38715, conf, Ovintiv, Calhoun 149-98-3-10-15H, 

RBN Energy: EQT acquisitions boost its role in West Virginia gas, NGL markets. Archived.

It’s hard to think of a $5.2 billion acquisition as a “bolt-on,” but that’s what EQT Resources — the U.S.’s #1 natural gas producer — is calling its recently announced purchase of Tug Hill’s gas production assets and XcL Midstream’s pipeline and processing assets in northern West Virginia. The deal, which represents the largest acquisition in the Marcellus/Utica Shale in five years, will not only give EQT even more scale in the nation’s leading gas-and-NGLs production region, it also will lower EQT’s breakeven gas price and its emissions intensity. Oh, and with the deal, EQT is doubling its share-repurchase authorization and increasing its year-end-2023 debt-reduction goal by 60%. In today’s RBN blog, we examine and assess these and other aspects of the agreement.

Several factors have been driving the frenzy of M&A activity in the U.S. oil and gas space, including (1) renewed confidence that, despite the likelihood of a near-term recession, hydrocarbon demand — and prices — will remain strong for years to come; (2) a preference among many larger E&Ps to grow production and free cash flow through acquisition, not aggressive capital spending; and (3) a desire by many smaller, privately held producers (and midstreamers) to cash in now and reap big gains as they do.