JPM Surges In Pre-Market — “Buys” First Republic — May 1, 2023

Locator: 44505D. 

JPM / First Republic.

• The  rich get richer.
• Well done, Mr Dimon.
• Wow.

Opportunity, link here:

Valuation: link here.

According to analysts, the U.S. supermajors, ExxonMobil and Chevron, are valued on the market at around six times their cash flows, while TotalEnergies is valued at around 4x the cash flow, with UK-based BP and Shell valued even lower, at around 3 times their cash flows. 

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

MRO's Carlson well in Bailey oil field just went over 500,000 bbls cum. Link here.

Active rigs: 40.

Peter Zeihan newsletter.

WTI: $75.27.

Natural gas: $2.368.

Tuesday, May 2, 2023: 54 for the month; 54 for the quarter, 309 for the year
37176, conf, Hess, EN-Davenport-156-94-1003H-5,

Monday, May 1, 2023: 53 for the month; 53 for the quarter, 308 for the year
31212 (no typo), conf, BR, Gladstone 5-1-13TFH,

Sunday, April 30, 2023: 52 for the month; 52 for the quarter, 307 for the year
39183, conf, Ragnar, Dagny 1-2H,
38523, conf, Oasis, Rilynn Federal 5201 41-2 2B,
31213 (no typo), conf, BR, Gladstone 4-1-13MBH,

RBN Energy: Federal incentives, rising demand spur a slew of US clean ammonia projects, part 2. Archived.

The global push to decarbonize power generation, shipping and other energy-intensive sectors of the economy and the Biden administration’s efforts to heavily incentivize the development of low-carbon energy sources have resulted in a growing list of big clean ammonia projects in the U.S. Almost all of these proposed multibillion-dollar production facilities are located along the Texas-Louisiana coast, a region that offers easy access to natural gas supply, carbon sequestration sites, and export markets. In today’s RBN blog, we continue our look at the burgeoning market for “green” and (especially) “blue” ammonia with a review of the largest production facilities now under development.

Most interesting: OCI / Beaumont, TX

OCI, a chemical company based in the Netherlands, broke ground in December 2022 on a $1 billion, 1.1-MMtpa clean ammonia plant in Beaumont, TX (yellow-outlined box), that is expected to come online in 2025. The project’s site is adjacent to the company’s existing 1.4-MMtpa methanol-ammonia production facility and a 1.8-MMtpa methanol plant owned by Natgasoline, a 50-50 joint venture (JV) of OCI and Proman USA. OCI has said that area already has extensive hydrogen-related infrastructure (H₂ pipelines and H₂ storage) and the site and its planned utilities are sufficient to support a doubling of the new clean ammonia plant’s capacity to 2.2 MMtpa when demand warrants it. The company has also indicated that at least 95% of the CO₂ generated during the production of the clean hydrogen for the new plant will be captured and sequestered. An engineering-procurement (EP) contract for the facility was awarded to Maire Tecnimont in March 2022.

Linde announced in February 2023 that it will build, own and operate an ATR and an air separation plant at the same Beaumont site and has signed a long-term agreement to provide blue hydrogen and nitrogen to OCI’s new clean ammonia plant. Linde’s $1.8 billion in new facilities will be capable of supplying blue hydrogen, nitrogen and other industrial gases to other customers in the area. Also, South Korea’s Lotte Chemical said in March 2023 that it has signed a memorandum of understanding (MOU) under which OCI will supply unspecified volumes of clean ammonia from the new Beaumont plant to Lotte. Further, the companies plan to co-develop a global ammonia bunkering network to supply ammonia-fueled ships.