Saturday, December 14, 2013

Presentations

 Halcon
Triangle Petroleum
MDU
Continental Resources
Whiting -- always good
Kodiak Oil & Gas
Oasis Oil & Gas 
Emerald Inc
Marathon Oil
Northern Oil & Gas (NOG)
OXY USA
EOG -- highly recommend; note particularly the average production of Eagle Ford wells compared to Permian wells:

December, 2013, presentation.
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For Investors Only

I subscribe to only one publication: The Wall Street Journal. Well, that's not quite correct. I also subscribe to BloombergBusinessweek but I have no idea how that happened. I've talked about it before.  I certainly won't continue the subscription. It is incredibly .... not good.

On the other hand, though I don't subscribe to it, every time I pick up a copy that happens to by lying (laying?) around, I am truly impressed with The Economist. So much so I may actually subscribe (I pulled out a subscription insert from a copy I found over at my son-in-law's). $139/51 weeks.

This most recent issue is filled with interesting subjects, and very little fluff.

Investors may be interested in this article featured on the cover: Blackrock.  The graphic at the link of its top 20 holdings is interesting. Note what the firm's top 20 investments are in. And then note what this risk-averse firm does not hold in its top 20.

Four of the top 20 holdings are in energy (five if you include Berkshire Hathaway, which may not be far-fetched if one looks at Warren's holdings). Note the one automobile company. One "retail." But again, note what sector is not represented at all in the top 20.

North Dakota Credit Rating Raised To AAA

The Dickinson Press is reporting:
Standard & Poor’s Rating Services has upgraded North Dakota’s credit rating from AA to AAA, making the state one of only 15 in the nation to hold the financial services company’s top credit rating, Gov. Jack Dalrymple announced Friday.
The major credit house also upgraded North Dakota’s appropriation debt rating and obligation debt rating to better reflect the state’s “very strong capacity to meet financial commitments,” the governor’s office stated in a news release.
The only question is: You mean to say there were fourteen other states with AAA rating when North Dakota did not have such a rating these past two years? What took so long?

One "Green" Map Showing How Shale Oil Made North Dakotans Rich In Five Years; Will The Bullet Train Reach Its Destination? As Posted Earlier, Now Confirmed -- Thousands Of Enrollee Applications Did Not Reach Their Destinations; Did HHS Just "Take-Over" The US Insurance Industry? Has US Health Care Just Been Nationalized?

CarpeDiem has an incredible map of the United States. Not much explanation needed, and no comments necessary.
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The Other Trainwreck

The Los Angeles Times is reporting:
The state's strategy of tapping $3.2 billion in federal money to begin construction of an ambitious bullet train project may be legally flawed and could put the state in financial jeopardy, key lawmakers say.
After recent legal rulings that bar the use of state money for the project, legislators from both political parties say that even the use of federal funds is questionable and the entire project needs to be reassessed.
U.S. Rep. Jeff Denham (R-Turlock), the chairman of the House rail subcommittee, and Rep. Tom Latham (R-Iowa), chairman of the appropriations panel for transportation, have asked the Government Accountability Office to investigate the issue.
"It has been a colossal failure," Denham said. "They are trying to make up the rules as they go along."
I honestly thought there was nothing that could compare with the federal trainwreck (aka, ObamaCare) but I'm beginning to wonder.

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Obamacare

Did HHS just "nationalize" the US insurance industry? Was their a takeover?

The other day the federal government "told" insurers to accept/pay claims even if folks do not pay their premiums in early 2014. Obviously there had to be a reason for this "directive." There are two major reasons that folks who are willing and able to pay their premiums, in fact, won't pay their premiums, at least early on: a) the software won't be written by January 31, 2014 (very likely); and/or, b) the applications completed on-line in October and November did not reach the insurers (confirmed).

Well, now we know. The applications did not reach the insurers.

The Washington Post is reporting that "thousands" of on-line applications never reached their destination. And, of course, you just know that "thousands of others" reached their destinations in multiple copies or with significant errors.

Back to the scarier story: did HHS just nationalize US health care? Not to worry. The insurers can play hardball, too. As I understand the Forbes article, HHS is simply telling insurers that if they don't "honor" implied commitments, HHS could "ban" certain insurers next time around. All that does it cancel more insurance policies. More likely, the insurers will buckle, but they will require co-pay and deductibles up front, with premiums to be paid within 30 days. This is essentially a 30-day "premium-to-be-paid" following the first medical visit. It will, however, be interesting to see how this plays out. Generally speaking, the first thing emergency rooms, clinics, and hospitals ask for is evidence of insurance. It will be interesting how quickly insurance companies get proof of insurance out to folks who have not paid their premiums. This is an absolute mess.  

Global Warming Hits Lake Sakakawea In The Bakken Oil Patch; Roughnecks To Start Drilling Ice (Fishing)

The Minot Daily News is reporting:
Lake Sakakawea is rapidly approaching a complete freeze.
If the massive reservoir is officially declared frozen-over prior to Dec. 20, which appears to be a certainty, it will mark the shortest season of open water in the history of the state's largest body of water.
On Thursday, much of the reservoir was covered in ice but there was some open water, primarily in the area immediately above the dam. The water there is some of the deepest in all of Lake Sakakawea and is considered the last portion of the reservoir to freeze each year. From a nearby overlook leading to the dam's intake structure, engineers from the Garrison Dam power plant make daily observations of ice formations and remaining open water.
I grew up in North Dakota. This is an incredible story. I do not recall it ever being this cold this year in the winter. Our cold month was February. 

Ice fishing in North Dakota, Devils Lake