FANG Beats On Top/Bottom Line -- February 20, 2024

Locator: 46855B.

FANG: after hours up 1.4%; up $2.43; trading at $180.49.

Walmart: closes the day up $5.50; up 3.23%; trading at $175.86.

Palo Also Networks plummets on earnings: down 12%+ after earnings announced. Beat on both top / bottom line. 

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Poolside

We just hit today's high of 80° at 3:00 p.m. It will be 79° at 4:00 p.m. I'm poolside.

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Back to the Bakken

WTI: $78.27.

Active rigs: 39.

No new permits. 

Nine wells released from confidential list, previously posted. No other activity reported.

Ford Cuts Prices Of Its Flagship EV -- February 20, 2024

Locator: 46854EVS.

Ford cuts prices of Mustang Mach-E by up to $8,100. These only apply to the unsold 2023 models.

From The Drive: 

Now that price is not ann obstacle, these things should be flying out the doors of dealers' showrooms.

One can assume the dealer will knock off another $3,000 to $5,000, "for those who qualify," bringing the final price to well under $40K.

Ticker pretty much unaffected. Ticker in line with rest of market today. 

Link here.

EVs: link here. 

• scorecard
• cash burn 
• graphite
•  not for me. 
• "Energy transition is dead" is followed here. 
• EVs charging. 
• cold weather -- reality sets in -- January, 2024
• resale value -- a deal-breaker 

Back to the Ford Mustang story: 

Ford Motor Co ... cut prices on its Mustang Mach-E electric SUV by up to $8,100 after sales fell sharply in January, 2024.

The ... lowest-price 2023 model year Mach E version now has a suggested retail price of $39,895, down from $42,995. The higher-end Mach-E GT spec will cost about $7,600 less, at $52,395. Other versions including the extended-range premium version will drop in price by $8,100 to $48,895.

Ford said the price cuts come as the automaker continues “to adapt to the market to achieve the optimal mix of sales growth and customer value.”

The ... automaker said U.S. sales of the Mach-E fell by 51% in January to 1,295.

The Mach-E lost eligibility for a $3,750 tax credit on January 1 after new U.S. Treasury Department battery sourcing requirements aimed at weaning the electric vehicle supply chain away from China took effect. Numerous other models also lost tax credits.

Last week, Treasury told Reuters it has reimbursed auto dealers for about $135 million in advance point-of-sale consumer EV tax credit payments since the start of the year through Feb. 6. The Internal Revenue Service has received more than 25,000 time of sale reports, including more than 19,500 with advance payment requests.

Tesla’s Model Y crossover, which competes with the Mach-E, starts at $42,990 before federal tax credits of $7,500.

The Elon Musk-led EV maker sparked a price war early last year in a bid to spur demand and grab more market share.

Mid-Day Links -- February 20, 2024

Locator: 46853INV.

CNBC headlines:

• Ford cuts prices of Mustang Mach-E by up to $8,100
• US Supreme Court won't review Apple's win against $500 million patent verdict, link here:

The justices turned away Zephyr Cove, Nevada-based VirnetX’s appeal of a lower court’s decision to overturn the verdict against Cupertino, California-based Apple that had been reached by a jury in Tyler, Texas. VirnetX had challenged the U.S. Patent and Trademark Office’s decisions to invalidate its patents. 

Apple and VirnetX have waged a 14-year-long court battle over VirnetX’s internet-security patents that has included several trials and appeals.

• Walmart to buy Vizio; beats on forecast; nice guidance and raises dividend highest it's raised it dividend in ten years. 
• Walmart's dividend announcement speaks volumes: the company sees a great economy going forward.
  
• AbbVie with new CEO
• Cox Communications wins order overturning $1 billion US copyright verdict
• more and more banks hiking S&P 500 target; now commonly seen: 5,400
• Home Depot beats earnings

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Dividend Watch

CAT is downgraded today; shares. CAT generally announces an increase in the dividend early in the summer with a record date of July 17 - 21, or thereabouts, payable a month later, August, making it a nice "off-month" dividend.

Eight Wells Coming Off Confidential List -- February 20, 2024

Locator: 46852B.

Another peak oil story: link here. Writer.

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Back to the Bakken

Henderson or Kennedy? I'll take Kennedy. Link here.

From the linked article by Charles Kennedy:

The Energy Information Administration estimated the Bakken’s output at 1.203 million barrels daily for February, rising to 1.206 million barrels in March. That would make it the play with the third-strongest growth rate, after the Permian and the Eagle Ford, where production between February and March is seen rising by 10,000 bpd and 5,000 bpd, respectively.

Oil production in the Bakken is set to benefit from Chevron’s recent acquisition of Hess Corp. The deal will give Chevron 465,000 net acres of high-quality, long-duration inventory in the Bakken supported by the integrated assets of Hess Midstream, Chevron said when it announced the tie-up last year. 

Of course, a change in production on a percentage basis would have more sense.

WTI: $79.60.

Tuesday, February 20, 2024: 50 for the month; 109 for the quarter, 109 for the year
39994, conf, CLR, Ransom 11-30H2,

Monday, February 19, 2024: 49 for the month; 108 for the quarter, 108 for the year
39993, conf, CLR, Ransom 10-30H

Sunday, February 18, 2024: 48 for the month; 107 for the quarter, 107 for the year
39619, conf, Whiting, DE YK Federal 12-33H
39618, conf, Whiting, DE YK Federal  12-33-2TFH,
39069, conf, Whiting, Safely Federal 32-7-2H,
39068, conf, Whiting, Safely Federal 32-7H
38303, conf, Whiting, Bigfoot LE 23-11 9H,
37705, conf, SOGC (Sinclair), Bighorn 3-6H,

Saturday, February 17, 2024: 42 for the month; 101 for the quarter, 101 for the year
39992, conf, CLR, Omlid 13-19H, 

RBN Energy: our contrarian take on refining capacity, product demand and other matters.

Around the world, a lot of smart people in the public and private sectors hold similar views on where we’re all headed, energy-wise. An accelerating shift to renewables and electric vehicles, driven by climate concerns. A not-so-far-away peak in global demand for refined products like gasoline and diesel. There are also what you might call consensus opinions on some energy-industry nuances, like how much global refining capacity will be operational in 2025 and what the spread between light and heavy crude oil will be in the years ahead. In today’s RBN blog, we discuss highlights from the new Future of Fuels report by RBN’s Refined Fuels Analytics (RFA) practice, including RFA’s different take on a few matters large and small — and all of critical concern to producers, refiners and marketers alike.