Locator: 50736B.
Iran:WTI continues to drop but not much news coming out of thte Mideast.
Some strange note about Saudi Arabia very upset with Trump's "Project Freedom." Has denied US anti-Iran activities out of its air bases. I have no idea what this is all about. Saudi says they weren't contacted about "Project Freedom" before it was put in place.
Saudi -- another "fair weather" friend:
McDonalds (MCD):
Earnings: net income for the quarter came in at $1.98 billion, or $2.78 per share, while total revenue jumped 9% to $6.52 billion. Stripping out restructuring charges, per-share earnings landed at $2.83 — topping the $2.74 Wall Street had penciled in, with revenue also clearing the $6.47 billion consensus estimate.
Pre-market: up 3%; up about $10.00.
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Back to the Bakken
WTI: continues to drop -- now around $91.
New wells reporting:
- Friday, May 8, 2026: 16 for the month, 116 for the quarter, 273 for the year,
- 41860, conf, Devon Energy, Finn 13-25F 2H,
- Thursday, May 7, 2026: 15 for the month, 115 for the quarter, 272 for the year,
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Well In Focus
The wells:
- 41860, conf, Devon Energy, Finn 13-25F 2H, Briar Creek, far southwest corner of Williams County; 1920-acre spacing; standup;
| Date | Oil Runs | MCF Sold |
|---|
| 3-2026 | 24790 | 25120 |
| 2-2026 | 30003 | 25453 |
| 1-2026 | 23720 | 21732 |
| 12-2025 | 21906 | 18419 |
| 11-2025 | 45937 | 24385 |
- There are actually five wells on that pad:
- 41862, drl/A, Devon Energy, Finn 13-25F 4H, Briar Creek, very nice well; t11/25; cum 122K 3/26;
- 41861, drl/A, Devon Energy, Finn 13-25F 3H, Briar Creek, very nice well; t11/25; cum 134K 3/26;
- 41860, conf/producing, Devon Energy, Finn 13-25F 2H, Briar Creek, very nice well;
- 41859, conf/producing, Devon Energy, Finn 13-25F 1H, Briar Creek; very nice well;
- 41858, conf/producing, Devon Energy, Finn 13-25F XW 1H, Briar Creek; nice well;
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RBN Energy
RBN Energy: E&Ps face a new capital allocation cycle -- will debt reduction stay front and center? Link here. Archived.
After
several years of aggressive balance-sheet repair, U.S. E&Ps are
entering a new phase — one defined not by constraint, but by
opportunity. A surge in oil prices tied to the Iran conflict and a sharp
rise in natural gas prices driven by an unusually cold winter have
combined to generate a fresh wave of excess cash flow across the sector.
Oil markets have been pushed higher by supply disruptions and
geopolitical tensions, while natural gas prices have strengthened on
weather-driven demand, reinforcing a powerful near-term earnings
tailwind. The question posed in today’s RBN blog is a familiar one: What
will companies do with these additional cash flows?
The
35 E&Ps that we monitor held total debt essentially flat at just
under $150 billion (blue bars and left axis in Figure 1 below) in 2025,
while their collective debt-to-capital ratio (orange line and right
axis) declined by 1 percentage point to 24%. Debt trended steadily lower
from its 2019 peak through 2022 as companies shifted toward a
cash-return model that prioritized free cash flow over reinvestment,
enabling meaningful debt reduction alongside increased dividends and
share repurchases. Debt moved sharply higher in 2024, driven by a surge
in M&A activity (see Try Some, Buy Some),
with our universe of E&Ps completing nearly $120 billion of asset
and corporate transactions. Despite the increase in total debt, the
debt-to-capital ratio remained stable, as companies funded acquisitions
with a mix of debt and equity to preserve target leverage levels. In
2025, debt levels held steady, while the debt-to-capital ratio declined
to 24%, supported by an expanding capital base.
