PXD Announces Increased In Quarterly Dividend -- August 2, 2022

Previous quarterly dividend: $7.38.

New quarterly dividend: $8.57, with indicated annual yield of 14.93%.

• record date: 9/6/22
• pay date: 9/16/22

Amazon Expands Delivery Options -- August 2, 2022

I simply find this amazing. Amazon continues to expand delivery options. 

From techradar:

Amazon’s next store update will let you digitally explore shopping malls and pick up new clothes and items that'll be delivered to you the exact same day.

The new pilot program is coming to 15 cities across the US including Chicago, Washington, Seattle, Las Vegas, and Dallas (I don't know if it includes the entire DFW metroplex). 

If you live in one of these places (and have an Amazon Prime membership) you’ll be able to access digital versions of your local mall’s Diesel, Pacsun, Superdry, and GNC – picking out clothes and items just like you would from the shelves.

Once you’ve placed your order, an Amazon delivery driver will then go pick it up and bring it to you later that same day – just like a takeout delivery service such as GrubHub (which is free for a year with Prime) or DoorDash but for regular stores. Unfortunately, even though this is a Prime benefit, you don’t automatically get free delivery – you’ll have to spend at least $25 on your order or cough up $2.99 to get your new goodies.

The BR Maverick Wells In Dimmick Lake -- Halo Effect -- August 2, 2022

Updates

January 18, 2023: initial production data posted here.

Original Post

Four-well pad to the west:

• 36241, loc/NC, BR, Maverick 1C TFH 33-0530-08986, Dimmick Lake, no production data, FracFocus: no frack data.
• 36242, loc/NC, BR, Maverick 1E MBH 33-0530-08987, Dimmick Lake, no production data, FracFocus: no frack data.
• 36243, loc/NC, BR, Stortroen 1D MBH 33-0530-08988, Dimmick Lake, no production data, FracFocus: no frack data.
• 36244, loc/NC, BR, Maverick 2C TFH 33-0530-08989, Dimmick Lake, no production data, FracFocus: no frack data.

Four-well pad to the east:

• 36245, drl/A, BR, Maverick 2D MBH, 33-0530-08990, Dimmick Lake, no production data, FracFocus: no frack data.
• 36246, drl/NC, BR, Maverick 2E TFH, 33-0530-08991, Dimmick Lake, no production data, FracFocus: no frack data.
• 36247, drl/NC, BR, Stortroen 2C TFH, 33-0530-08992, Dimmick Lake, no production data, FracFocus: no frack data.
• 36248, drl/NC, BR, Stortroen 2D MBH, 33-0530-08993, Dimmick Lake, no production data, FracFocus: no frack data.

A singleton, farther east:

• 17213, 437, BR Maverick 44-12H, Dimmick Lake, t7/08; cum 221K 6/22; recent production, 1,252  bbls crude oil over two days (June, 2022) extrapolates to almost 20,000 bbls over 30 days:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	6-2022	2	1252	477	2048	497	455	36
BAKKEN	5-2022	0	0	0	0	0	0	0
BAKKEN	4-2022	9	152	708	167	788	766	0
BAKKEN	3-2022	8	341	0	282	392	372	0
BAKKEN	2-2022	0	0	0	0	0	0	0
BAKKEN	1-2022	0	0	0	0	0	0	0
BAKKEN	12-2021	27	258	457	13	310	222	21
BAKKEN	11-2021	21	259	244	8	357	307	0
BAKKEN	10-2021	31	606	467	79	1213	1130	6
BAKKEN	9-2021	30	518	476	53	1058	950	34

A singleton, to the southeast:

• 18732, 558, CLR, Stortroen 1-13T, Dimmick Lake, t7/10; cum 176K 6/22;

A reader alerted me to these wells. The reader wrote: 

NDIC well #17213 Maverick 44-12 has been a lackluster well at best. 

In the profile, it has topped out around 600 barrels of oil for a 30 day period over the last year. 

NDIC well #36245 Maverick 2D MBH just was released from confidential today, and is located in the same area. 

The Maverick 44-12 was offline for all of May, assuming it was for some fracking work on the neighboring wells. When it came back online in June, it produced 1200 barrels for a two day period. The well file does not show anything that I can find relating to a work over on that well, so I am assuming it is due to the neighboring fracs.

My reply:

That is incredibly impressive. That 1,200 bbls of crude oil over two days extrapolates to nearly 20,000 bbls crude oil over 30 days. 

The Bailey oil field and the Reunion Creek oil field (MRO) is well known for the "halo effect." This may suggest the "halo effect" may be relevant in the Dimmick Lake. It will be fascinating to watch. 

The NDIC GIS map server does not yet show the horizontals, but it's obvious these new wells parallel the older Maverick well.

Frack data has not yet been posted for the newer wells.

Grayson Mill With Permits For Four Cherrey Wells On The West Side Of Williston -- August 2, 2022

WTI: $94.42. The drop in the price of WTI seems to have slowed; perhaps bottomed again. 

OPEC+ met this week; will raise production quota by 250,000 bopd (a drop in the bucket in the big scheme of things) and production provides for domestic consumption and export, and "production" does not necessarily follow "production quota." One can argue that OPEC+ increase in crude oil production is barely keeping up with their own domestic use, particularly in Saudi Arabia where the kingdom is increasing refinery capacity to export refined products.

Natural gas: $7.706. Many see this drop perplexing. All things being equal, it suggests analysts are looking toward:

• a further slowdown in economic activity in the third quarter;
• a temperate autumn in Europe;
• adequate natural gas reaching Europe by the time winter hits

Active rigs: NDIC reports 46 active rigs. 

Six new permits, #39121 - #39126, inclusive:

• Operator: Grayson Mill (Equinor) (4); Iron Oil Operating (2)
• Field: Todd (Williams County); Bully (McKenzie County)
• Comments:
• Iron Oil has permits for two Stocke wells in lot 4 section 4-148-100, 
• to be sited 345 FNL and at 961 FWL and 1011 FWL;
• Grayson Mill has permits for four Cherrey wells in SESW 34-155-101, 
• to be sited 403 FSL and 402 FSL and between 2056 FWL and 2236 FWL. 
• the Cherrey wells will be north of the Municipal Golf Course and west of Spring Park
• Note: I had this wrong in the original note. A big thanks to the reader who caught my mistake and alerted me. 
  

Map:

Oops! CATL -- August 2, 2022

Quick! What is CATL?

Link here.

Oops. Supplies Ford and Tesla. Today. 

Just getting started, June 26, 2022.

Dominates the EV battery industry, June 7, 2022.

The iCar, March 3, 2022.

Substitute safety for range, May 24, 2022.

First mention, December 25, 2016.

Devon's CEO On The Bakken -- August 2, 2022

When I first saw this quote, I misinterpreted it. I now understand what he was saying. It means nothing. Absolutely nothing.

One of the seven habits of highly effective people: seek first to understand. 

Recall: Devon is now operating in the Bakken. 

I Care Not A Bit -- Rivian, Whining -- August 2, 2022

 Link here to The WSJ:

Electric-vehicle startup Rivian Automotive Inc. is warning that planned revisions to the EV tax credit would put the young car maker at a disadvantage to more-established competitors.

The proposed changes to the federal tax subsidy, which has been in place for years as a way to make EVs more affordable, are part of a broader legislative package deal between Sen. Joe Manchin (D., W.Va.) and Senate Majority Leader Chuck Schumer (D., N.Y.) to cut carbon emissions and healthcare costs.

If it passes in its current form, the new legislation would extend the $7,500 federal tax credit for EVs but add new restrictions that Rivian said would make most of its vehicles ineligible for the incentive program.

Pretty funny. 

Everyone was watching Nvidia and Nancy Pelosi. Great head fake. LOL. 

Very Few Wells Coming Off Confidential List This Week; Most Of Them Are CLR -- August 2, 2022

RBN Energy: what's behind the mid-Atlantic / Southeast natural gas price spikes. Archived. 

Just downstream from the Appalachian supply basin — where daily spot natural gas prices are among the lowest in the country — cash and forward prices in the Mid-Atlantic and Southeast have rocketed, becoming the highest gas prices in the land, and in some cases are at never-before-seen levels for this time of year.

Opening comment:

• economic indicators and market action suggests:
• 3Q22 will not be as robust as some thought just a few days ago; GDP could actually go negative, third month in a row;
• market action over past two days, also suggests:
• anxiety over US - Chinese tensions
• China does not have to respond militarily to their displeasure of US actions
• China could easily take "economic" steps that could greatly affect US markets
• by this time next week, we will know more about Chinese - US fallout
• my hunch: another tempest in the teapot (whistling past the graveyard?) 
• investors? buying opportunity
  

AAPL:

• dividend expense:
• outstanding shares: 16.403 billion
• dividend: 23 cents * 4 = 92 cents annual
  
• annual: $15.1 billion
• income
• revenue (ttm): $388 billion
• gross profit (ttm): $152 biillion
• bonds sold yesterday: $5.5 billion at 63 to 118 basis points over Treasury rate

INTC, link here, pay wall:

While badly wounded, Intel isn’t dead yet. 

And at least one analyst thinks there could be considerably more value in the beleaguered chip company’s shares than Wall Street generally believes. 

Let’s be clear: The situation is bleak. Intel last week posted one of the company’s worst quarterly reports ever, along with hugely disappointing guidance. Intel is suffering the effects of slower personal computer sales (which many had already expected), softer demand from data center customers (which was an unhappy surprise), and continued market share loss to rival Advanced Micro Devices. 

One word: Nokia.

LNG, global:

• Australia may limit LNG exports amid domestic gas shortage; link here.
• US: Freeport LNG export terminal should be back on line by end of October, 2022

MPC:

• MPC must have had a good earnings report;
• on another down day for the market, MPC is up 2.5%; up $2.23; trading at $72.40
• let's check the earning report:
• "Marathon Petroleum 2Q revenue jumps on surge in demand"
• seriously, did anyone think otherwise; is this news?
• results:
• EPS: wow -- $$10.61 vs consensus of $9.17; whisper number: $9.34; huge beat
  
• revenue: $54.2 billion vs $37.2; 
• grew 82% year/year
  
• for perspective, Apple revenue for this quarter: $83 billion (vs est $82.4 billion)
  

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

Far Side: link here.

WTI: $94.17.

Natural gas: $7.783

Thursday, August 4, 2022: 3 for the month, 34 for the quarter, 373 for the year

• 38170, conf, CLR, LCU Foster Federal 7-28H,

Wednesday, August 3, 2022: 2 for the month, 33 for the quarter, 372 for the year

• None.

Tuesday, August 2, 2022: 2 for the month, 33 for the quarter, 372 for the year

• 38169, conf, CLR, LCU Foster FIU 6-28H1,

RBN Energy: what's behind the mid-Atlantic / Southeast natural gas price spikes. Archived. 

Just downstream from the Appalachian supply basin — where daily spot natural gas prices are among the lowest in the country — cash and forward prices in the Mid-Atlantic and Southeast have rocketed, becoming the highest gas prices in the land, and in some cases are at never-before-seen levels for this time of year. 

No doubt it’s been a sweltering summer so far, and low storage levels aren’t helping either. But there’s more to the price premiums than that. Limited access to supply and constraints on Williams’ Transco Pipeline — the primary system delivering gas to the region — have created a demand “island” there just as persistent heatwaves boosted cooling demand. Moreover, without additional pipeline capacity, the dynamics unfolding this summer could become a regular feature of the Southeast/Mid-Atlantic markets. In today’s RBN blog, we break down the factors driving regional prices to new heights.

We’ll start our analysis with what caught our attention in recent weeks: the eye-popping pricing anomalies that emerged in the Mid-Atlantic and Southeast regions starting around mid-June. Daily spot price history from our good friends at NGI shows that the national benchmark Henry Hub ran up to nearly $10/MMBtu in early June but lost steam in the second half of the month and ended June with a $6 handle. However, Mid-Atlantic and Southeast prices, represented by trading hubs along the Transco corridor, began to diverge from Henry Hub around that time.

Transco Zone 5 cash, which represents the Carolinas, Virginia and Maryland markets, had been averaging just 17 cents above Henry in the April-May timeframe and 44 cents above Henry Hub in the first 13 days of June. But prices there abruptly jumped to an all-time high for the June-July timeframe at $16.43/MMBtu on June 14, more than $7 above Henry Hub that day. For the rest of June, it averaged nearly $9.60/MMBtu, more than $2.50 above Henry Hub, and in July, Transco Zone 5 cash topped $11/MMBtu, more than $4 above Henry. Transco Zone 3 (Louisiana) and Zone 4 (Mississippi, Alabama and Georgia) June-July average prices, which had traded a few cents back of Henry in previous years, surged to premiums of $1.60-$1.75 to Henry.