Several Wells Coming Off Confidential List; Hess EN-Davenport Wells Looking Good -- May 15, 2023

Locator: 44649B.  

Peter Zeihan: missed. Where are the 500K Russian soldiers?

Russia: signs that exports starting to drop, though record export numbers persist. Mixed data / analysis. 

Putin's war:
the prediction that Russia would mass 500,000 soldiers for the spring offensive never materialized;
US: still won't provide Ukraine with F-16s; Europe steps in; Z. says decision could come soon;

Turkey: runoff elections unless a bunch of boxes of uncounted ballots in Ankara and Istanbul show up, which wouldn't surprise me.

US debt ceiling talks: starting to gain steam.

Mr. Market: in a good mood this a.m.

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Back to the Bakken

Active rigs: 39.

Focus on fracking: posted overnight.

Peter Zeihan newsletter.

WTI: $70.56.

Natural gas: $2.317.

Tuesday, May 16, 2023: 23 for the month; 75 for the quarter, 330 for the year
39285, conf, CLR, Smouse 7-28H,
39275, conf, Kraken, Sumner 12-13-24 5H,
35019, conf, BR, Lillibridge 1B TFH,

Monday, May 15, 2023: 20 for the month; 72 for the quarter, 327 for the year
39284, conf, CLR, Smouse 6-28H,
39274, conf, Kraken, Sumner 12-13-24 4H,
37184, conf, Zavanna, Edgar 10-3 2TFH,

Sunday, May 14, 2023: 17 for the month; 69 for the quarter, 324 for the year
39273, conf, Kraken, Sumner 1-36-25 3H,
37179, conf, Hess, EN-Davenport-156-94-1003H-8, Big Butte, the Davenport wells are tracked here. After this one, there should be one more Davenport well to report.

Saturday, May 13, 202: 15 for the month; 67 for the quarter, 322 for the year  
39272, conf, Kraken, Sumner 1-36-25 2H,

RBN Energy: US E&P debt ratios indicate resilience to credit market volatility.

There’s been a lot of talk over the last year or so about U.S. E&Ps exerting financial discipline by moderating their investments in growth, paying down debt and returning substantial portions of their free cash flow to investors in the form of dividends and stock buybacks.

So, worries in the broader economy that the banking crisis and the specter of a looming recession may restrict access to capital markets shouldn’t be a major concern for the 41 oil and gas producers we monitor, right? As we discuss in today’s RBN blog, the answer isn’t a simple yes or no.

The bad news is that the E&P sector still holds quite a bit of debt and that several of the companies we track added to their debt load in 2022. The good news is that total debt levels are down and that the net present value (NPV) of oil and gas reserves — a key factor in determining how much debt an E&P can handle — has soared, which may make it easier for them to borrow money if they need it.