Locator: 45289DIV.
Reminder: had been as high as $7.47 back in September, 2022.
Tuesday, August 1, 2023
Largest Single-Week Crude Oil Inventory “Crash” In Years — August 1, 2023
Locator: 45288OIL.
A draw of 15.4 million bbls?
WTI up, almost a buck, trading at $82.31, this evening.
Disclaimer -- Again -- Briefly
Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.
All my posts are done quickly:
there will be content and typographical errors. If anything on any of
my posts is important to you, go to the source. If/when I find
typographical / content errors, I will correct them.
Daimler Truck -- Has It Turned The Corner? Reports Record Margins Despite Rising Costs -- August 1, 2023
Locator: 45286TRUCKING.
Link here.
This article corroborates what I've heard elsewhere.
Highlights:
- 2Q23 adjusted return on sales: 10.3% for its industrial business
- supply chains were easing
- some bottlenecks but no major production downtime was expected
- company's order intake was down partly because it had not yet opened up order books for next year
- guidance: "won't be a bad year next year"
- guidance: raised approx 100 basis points
WTI Trading Above $82 -- August 1, 2023
Locator: 45285OIL.
WTI: $82.08.
Or traders noted this:
Active rigs: 41.
Four new permits, #40086 - $40089, inclusive:
- Operator: Phoenix Operating
- Field: Smoky Butte (Divide)
- Comments:
- Phoenix has permits for four Jean Ferrari wells, NENW 26-160-100,
- to be sited 310 FNL and between 1800 FWL and 1890 FWL
Six permits renewed:
- Petro-Hunt (3): three State permits; Charlson, McKenzie County;
- WPX (3): three FBIR Johnson permits; Heart Butte, Dunn County;
Two producing wells (DUCs) reported as completed:
- 39005, 1,240, CLR, Rhonda 2-28H,
- 39006, 888, CLR, Rhonda 4-28H1,
INTC Declares Quarterly Dividend In Line With Previous Quarter -- Ex-Div This Friday -- August 4, 2023
Locator: 45284TECH.
Dividend history:
Ticker, five-year:
August Can Be The Cruelest Month For Presidents -- August 1, 2023
Locator: 45283POLITICS.
Former President Donald Trump indicted. News broke about 4:38 p.m. CDT, August 1, 2023.
NOG Declares Dividend -- August 1, 2023
Locator: 45282OIL.
Dividend history:
Ticker, one month:
RBN Energy, on this business model: competition heats up for margin-boosting oil and gas mineral rights. Archived.
On average, the landowners and other entities that own mineral and royalty interests in producing oil and gas wells receive about 20% of the gross revenues generated by those wells — and do so without any responsibility for the significant costs and complications associated with well development and production. Mineral and royalty interests have traditionally been a highly fragmented market, with most held and passed down through generations by landowners or purchased by individual investors. However, competition for these interests has become more heated in recent years with the creation of large publicly owned and private-equity-funded consolidators and a new emphasis by E&P companies on adding these higher-margin slices of revenue from leases they own and operate. In today’s RBN blog, we explain mineral and royalty interests and analyze the developments in this massive $700 billion market.
As the oil and gas industry has evolved from a growth-at-any-cost strategy to a laser focus on generating free cash flow, it’s not surprising to learn that there has also been an increase in competition for the highest-margin portions of the revenue produced by every well — the average 20% paid to holders of mineral and royalty interests by producers of lease acreage. Because E&Ps agree to fund 100% of development and production costs, the mineral and royalty interest holders receive a much higher percentage of the gross revenues of each well while remaining free of development/production costs and shielded from the impact of inflation. That has helped to make mineral and royalty interests hot commodities pursued by a variety of entities looking to boost returns on oil and gas investments.
OMG! Let’s See If EIA “Confirms” Tomorrow — August 1, 2023
Locator: 45280OIL.
My hunch: one of several things happens tomorrow — if numbers above are confirmed overnight:
- the weekly EIA report is delayed;
- the weekly EIA report is released with third paragraph redacted;
- SecEnergy Granholm meets with Jim Cramer on CNBC at 8:00 a.m. to announce another record SPR release; says “all is well”; Cramer indicates Americans are back to traveling and says there’s always a bull market somewhere … and today it happens to be CVX and OXY;
- SecEnergy Granholm announces that she would like to spend more time with her family;
- Donald Trump is indicted and everyone forgets about oil;
Later, 4:47 p.m. CDT: the last one is off the table -- it's breaking now -- Donald Trump has been indicted.
AMD Surges After Reporting 2Q23 Results
Locator: 45277TECH.
Huge.
Both TSM and NVDA get little bump after AMD surge in price.
Even AAPL showed a bit of life after hours.
Nice:
Devon Reports 2Q23 Earnings
Locator: 45276OIL.
Link here: https://twitter.com/WAR527/status/1686471874761347072.
Dividend: 49 cents compared to 72 cents previous quarter and 89 cents prior to that.
Production sets record: 323,000 bpd.
Guidance: increased production 3Q23.
Ticker, after hours: down 2.0%. Trading at $53; anticipated as low as $50.
Plastic Straws? Nope -- Something Else -- August 1, 2023
Locator: 45275TECH.
I'll post later why this is an important stat.
**********************************
The Book Club
Calculating the Cosmos: How Mathematics Unveils the Universe, Ian Stewart, c. 2016.
The Book Of The Moon, Rick Stroud, c. 2009.
To Be Clear: There Will Be A Recession -- August 1, 2023
Locator: 45274ECON.
Posting this for bragging rights, time/date stamp -- 9:56 a.m., August 1, 2023.
Recession obsession: just to be clear -- we all agree -- there will be a recession.
Quick: name a country with a higher GDP forecast than the US for 3Q23 (period, July - Sept, 2023).
GDPNow, link here.
Laser-focused on dividends, link here:
Devon -- An Update -- August 1, 2023
Locator: 45273OIL.
Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.
All my posts are done quickly:
there will be content and typographical errors. If anything on any of
my posts is important to you, go to the source. If/when I find
typographical / content errors, I will correct them.
The "original" Devon post and updates, link here.
Today, buried in this Motley Fool article
Devon, hidden in this article, link here: there are a lot of rookie mistakes in this article, but overall, very, very good.
Ticker, today:
WTI, today:
Tale Of Two Autos -- August 1, 2023
Locator: 45272AUTOS.
Jeep, link here:
The Jeep brand has gone up market in recent years with several pricey new vehicles. Its market share has gone in the other direction.
The rugged American brand that spawned the modern SUV has posted lower sales for eight straight quarters. Since mid-2018, Jeep has surrendered significant market share, falling from sixth to ninth in sales among top U.S. brands.
The decline came as Jeep pushed into new vehicle categories, including a pickup-truck version of its popular Wrangler and the Grand Wagoneer, a large, luxury SUV priced above $90,000. But Jeep has faced stiffer competition in its core markets, like compact and midsize SUVs, as automakers target those categories with new offerings.
Ford, link here:
Ford, link here:
Ford, link here:
Mom-And-Pop Minerals -- RBN Energy -- August 1, 2023
Locator: 45270B.
WTI: $81.15
Wednesday, August 2, 2023: 3 for the month; 205 for the quarter, 460 for the year
39473, conf, Ovintiv USA, Newman 150-97-21-16-14H,
39436, conf, Eagle Operating, V-M 5-7,
39157, conf, CLR, Kiefel 4-36H,
Tuesday, August 1, 2023: 94 for the month; 202 for the quarter, 457 for the year
None.
RBN Energy: competition heats up for margin-boosting oil and gas mineral rights. Archived.
On average, the landowners and other entities that own mineral and royalty interests in producing oil and gas wells receive about 20% of the gross revenues generated by those wells — and do so without any responsibility for the significant costs and complications associated with well development and production. Mineral and royalty interests have traditionally been a highly fragmented market, with most held and passed down through generations by landowners or purchased by individual investors. However, competition for these interests has become more heated in recent years with the creation of large publicly owned and private-equity-funded consolidators and a new emphasis by E&P companies on adding these higher-margin slices of revenue from leases they own and operate. In today’s RBN blog, we explain mineral and royalty interests and analyze the developments in this massive $700 billion market.
As the oil and gas industry has evolved from a growth-at-any-cost strategy to a laser focus on generating free cash flow, it’s not surprising to learn that there has also been an increase in competition for the highest-margin portions of the revenue produced by every well — the average 20% paid to holders of mineral and royalty interests by producers of lease acreage. Because E&Ps agree to fund 100% of development and production costs, the mineral and royalty interest holders receive a much higher percentage of the gross revenues of each well while remaining free of development/production costs and shielded from the impact of inflation. That has helped to make mineral and royalty interests hot commodities pursued by a variety of entities looking to boost returns on oil and gas investments.
Mom-And-Pop Minerals -- Competition Heats Up for Margin-Boosting Oil and Gas Mineral Rights -- RBN Energy -- August 1, 2023
RBN Energy: competition heats up for margin-boosting oil and gas mineral rights. Archived.
On average, the landowners and other entities that own mineral and royalty interests in producing oil and gas wells receive about 20% of the gross revenues generated by those wells — and do so without any responsibility for the significant costs and complications associated with well development and production. Mineral and royalty interests have traditionally been a highly fragmented market, with most held and passed down through generations by landowners or purchased by individual investors. However, competition for these interests has become more heated in recent years with the creation of large publicly owned and private-equity-funded consolidators and a new emphasis by E&P companies on adding these higher-margin slices of revenue from leases they own and operate. In today’s RBN blog, we explain mineral and royalty interests and analyze the developments in this massive $700 billion market.
As the oil and gas industry has evolved from a growth-at-any-cost strategy to a laser focus on generating free cash flow, it’s not surprising to learn that there has also been an increase in competition for the highest-margin portions of the revenue produced by every well — the average 20% paid to holders of mineral and royalty interests by producers of lease acreage. Because E&Ps agree to fund 100% of development and production costs, the mineral and royalty interest holders receive a much higher percentage of the gross revenues of each well while remaining free of development/production costs and shielded from the impact of inflation. That has helped to make mineral and royalty interests hot commodities pursued by a variety of entities looking to boost returns on oil and gas investments.
Monthly Crude Oil Production Increases Over Monthly 2019 Production For Fifth Month In A Row -- August 1, 2023
Locator: 45268B.
I've not seen anyone comment on this, yet.
"US field production of crude oil." Monthly.
This is difficult for me to articulate so I will have to "walk through it" month-by-month, year-by-year.
The EIA reports US crude oil production on a monthly basis.
Prior to the pandemic, in 2019, monthly production was showing record production and climbing month after month.
In 2020, production in
- January exceeded production in January 2019 (one year earlier)
- February exceeded production in February 2019 (one year earlier)
- March exceeded production in February 2019 (one year earlier)
Then, in 2020,
production, starting in April, started to drop below production in same
months one year earlier. President Trump panicked and shut down the US:
- the worst decline, y/y:
- November, 2019: 13,000
- November, 2020: 11,196
That theme continued through all of 2021:
there was not one month in 2021 in which production exceeded production
in same month in 2019, two years earlier, before the pandemic.
That theme also continued through all of 2022: there was not one month
in 2022 in which production exceeded production in same month in 2019, three years earlier, before the pandemic.
But
then, in 2023, this year -- whooo-hooo -- for the first time in four
years, the monthly production in May, 2023, exceeded the production in
May, 2019:
- May, 2023: 12,662
- May, 2019: 11,734
- an 8% increase
All-time monthly production record, in a 30-day month:
- November, 2019: 13,000.
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