The Million Dollar Way (The Bakken Oil Blog)

Tuesday, July 26, 2022

PXD Dividend -- July 26, 2022

Laser-focused on dividends.

PXD is down 20%-plus since its high in June, even as consensus earnings estimates have risen significantly.
Meantime, this week's Barron's pointed out that energy stocks make up ~4% of the S&P 500 yet are expected to account ~12% of the index’s earnings in Q2.
PXD is likely to pay out substantially more than $20/share in total dividends (base+variable) this year.
Note: most financial websites are not reporting variable dividends/yields very well. Given the price action has been lower, while the earnings consensus has risen, I'm upgrading my rating on PXD from HOLD to BUY.

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Energy Odds And Ends -- July 26, 2022

From oilprice.com:

Beating a dead horse:

New England, New York: a supply problem.
Texas: a demand problem

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A Medical Note

If I can't pronounce or spell the generic / brand name of the drug, I will never take it.

Period. Dot.

The New NDIC GIS Map Server -- Incredible -- Worth The Wait -- July 26, 2022

I can't say enough positive things about the new NDIC GIS map server.

It is incredibly robust.

This is what I sent a reader.

This link will take you to the NEW MAP that just went live a few days ago: https://gis.dmr.nd.gov.

At that link, a small map shows up but it's just a picture. You need to click on "ND OIL & GAS Viewer." https://gis.dmr.nd.gov/dmrpublicportal/apps/webappviewer/index.html?id=a2b071015113437aa8d5a842e32bb49f

It's a very, very robust application. It may take a few seconds to load depending on your computer.

In the left upper corner, there is a "search magnifying glass."

Type in the NDIC file number for the well (in this case: 15206) and the application will take you to the well. You can use the "+/-" icons in the upper left hand corner to make map larger or smaller.

If you don't have the file number, you can also search by the well name, in this case, Federal 33-20.

No New Permits, Zavanna Renews Four Permits -- Tuesday, July 26, 2022

SPR release: I'll update this and provide some links later, if the spirit moves me.

GOOG and MSFT both miss. Details later. Screenshot now.

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Back to the Bakken

SPR release: the release continues; one million bbls/day to be sold; twenty million bbls to be auctioned with the announcement today. I assume this takes us through most of August. This is a non-story; simply political in nature. There is no new authorization. This continues to be sales (not swaps) first authorized in March, 2022.

WTI: $94.98. Dropped from a high of $98 during the early morning before the SPR release was announced.

Natural gas: rose 3%; not affected by the SPR release. Closed at $8.993. Would be much higher, all things being equal, if Freeport LNG export terminal were open. Whether Freeport opens any time soon is now a political decision. My hunch: won't re-open until European winter emergencies, earliest being January, 2023.

Active rigs: 45 or thereabouts.

No new permits.

Four permit renewals:

Zavanna: four King Charles permits in Williams County.

Inquiring Minds Want To Know -- July 26, 2022

Remember when the US government seemed to be running out of money every six months and the Secretary of the Treasury would warn the US Congress that if the debt limit wasn't raised, the US would default?

Maybe this screenshot will help:

So, what happened? I can't recall the last time we've gone so long without the SecTreasury concerned about running out of money.

There are at least three reasons which I will come back to later, but will let folks think about it for while. I think it's fascinating.