Where Is EOG Headed?

This is a "cut and paste" from one of my earlier postings. It's that important (the PN link was sent to me by a reader: a huge "thank you.")

A reader sent me this story. It supplements an earlier EOG story: very important. 

In the latter link, Papa says there are only four plays worth discussing (the rest are all "insignificant"): the Bakken, the Eagle Ford, the Permian, and the Barnett.

In this newest link, Papa has revised his opinion: there are only TWO plays that are important: the Bakken and the Eagle Ford. 

This is an incredible story -- everyone needs to read.

EOG Resource’s top executive Mark Papa raised a few eyebrows Sept. 4 when he told attendees of Barclays energy conference that only two horizontal liquids plays in the U.S. matter — the Eagle Ford and the Bakken.  

The rest are “insignificant” in terms of future U.S. production, Papa says, including those his company is invested in, such as the Wolfcamp, Permian and Barnett plays. 

In fact, in 2013, it is “likely” the Houston-based company will be “stealing some capital from the Permian and … Barnett combos” for company operations in the Eagle Ford and Bakken, Papa said. 

This story, by the way, is at odds of so much that has been published about the Permian lately (one example). It appears Papa, like Wayne and Steve, is skating to where the puck will be. Again.

Now some comments.

I wonder if he's forgetting about the Utica?

When I posted the earlier story about Papa stating only four plays were discussing, a reader noted that was in EOG's best interests. Well, of course.

However, in his most recent remarks, he is even dissing a couple of EOG plays. Interesting.

Another data point: Mr Papa retires retires in mid-2013.  For some CEOs there is not a lot of difference between fading away and retiring. Something tells me that Mr Papa is not going to fade away. I look for him/EOG to make a move in the Bakken. It's possible the move will be in the Eagle Ford, but two other data points to consider:

a) EOG has been relatively "status quo" in the Bakken for the past two years; predictable and not particularly exiting for a blogger or an investor; and,
b) the QEP/Helis deal raised the bar both in estimated value of Bakken assets and in urgency to acquire such acreage

Remember: updates of "all" Bakken players can be found at the 2Q12 earnings page.  EOG must be doing something right: in 2Q12, EOG beat consensus estimates by 18 cents.

As long as I'm rambling, two more data points:

a) it's hard for me to believe that Chesapeake won't sell its North Dakota acreage;
b) although Congress may sort it out later, there's no guarantee: don't forget the "fiscal cliff" which will impact the wealthy significantly

Disclaimer: this is not an investment site; do not make any investment decisions based on what you read at this blog. This is certainly not a recommendation to trade in EOG. It's just idle rambling by someone who gets a kick out of the Bakken.

Three Pages of Beautiful Photographs of Southwest North Dakota -- And, Yes, Even a Bakken Story

Link here.

These photos are from 2011, but I came across them while looking for stories about this year's event: the 10th annual Medora Balloon Rally.

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CarpeDiem on jobs, jobs, jobs ...

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From the front page of the LA Times (this is a dynamic link, and will change), at the very top, no editing:

Higher taxes on top earners would be a major 2nd-term goal for Obama
By Christi Parsons, Kathleen Hennessey and David Lauter
Other priorities would include Iran, healthcare and immigration. Jobs probably wouldn't be high on the list.

This link will take you to the story. Incredible, isn't it?

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Speaking of jobs, which the administration is not, here's an interesting story about a boom in Bakersfield, California. Regular readers probably already knew this:

The state's economic recovery has largely been concentrated on the coast, leaving behind much of the hard-hit San Joaquin Valley. But Bakersfield, perhaps best known for oil, agriculture and country music, has reclaimed an old title: boomtown.

Bakersfield has been adding population and jobs at a brisk pace and is a few thousand jobs from matching its peak employment level of five years ago. A price-fueled energy bonanza, low corporate operating costs and an advantageous location are contributing to the area's good fortune.

Employment has grown across many sectors, including manufacturing. Even construction, which suffered mightily statewide during the housing bust, has strengthened. And unlike many struggling municipalities, in Kern County officials have recommended a budget increase that would allow hiring of more than 150 people.

Here we go!
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Random data points flash across my mind:

• 1917 to 1991: a country's potential was set back more than a century, and is still struggling
• 2008 to 2016: another revolution in the making, albeit peaceful, and be elected leadership

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A reader sent me this story. It supplements an earlier EOG story: very important. In the latter link, Papa says there are only four plays worth discussing (the rest are all irrelevant): the Bakken, the Eagle Ford, the Permian, and the Barnett.

In this newest link, Papa has revised his opinion: there are only TWO plays that are important: the Bakken and the Eagle Ford. This is an incredible story -- everyone needs to read.

EOG Resource’s top executive Mark Papa raised a few eyebrows Sept. 4 when he told attendees of Barclays energy conference that only two horizontal liquids plays in the U.S. matter — the Eagle Ford and the Bakken. 

The rest are “insignificant” in terms of future U.S. production, Papa says, including those his company is invested in, such as the Wolfcamp, Permian and Barnett plays.  

In fact, in 2013, it is “likely” the Houston-based company will be “stealing some capital from the Permian and … Barnett combos” for company operations in the Eagle Ford and Bakken, Papa said.

This will be re-posted as a stand-alone post. It was sent to me by a reader: a huge "thank you." This story, by the way, is at odds of so much that has been published about the Permian lately (one example). It appears Papa, like Wayne and Steve, is skating to where the puck will be. Again.

Filloon on TPLM

Link here to SeekingAlpha.com.

Week 36: September 2, 2012 -- September 8, 2012

Wow, we're into week 36 already. Christmas is almost here. I see many stores are putting up Christmas displays next to the Halloween plastic pumpkins.

Bakken Operations
Frac sand for sale
Heckmann to buy Power Fuels
Flaring: why it won't stop in the Bakken
Photos of the Epping CBR facility
BEXP with three more nice wells
Oasis, Whiting with nice wells
Just how big IS the Bakken? BNSF now has capacity for 1 million bopd (on top of all that pipeline)
Update of ONEOK's Bakken natural gas pipeline from Sidney to Colorado; whining in Wyoming

Economic Development in the Bakken
The Williston Wire update

Stranger Than Fiction
Delta to supply refinery with Bakken oil 
The feasibility of an airport at Killdeer, North Dakota

Barclays Presentations and Other Investing Stories
ONEOK
SandRidge (same link as ONEOK's)
TPLM
KOG (same link as TPLM)
Whiting
ONEOK
EOG, Part I
EOG, Part II
Halcon
NOG: #7 on Fortune's 100 Fastest Growing Companies; Whiting #70

International
Mexico is facing shortage of natural gas
Unprecedented number of oil tankers from North Sea to South Korea
Egypt's largest company to build fertilizer plant in Iowa; take advantage of "cheap" natural gas

Human Interest
Mobile showers in the Bakken

Records
Lower 48 production: 23-year high; employment in oil and gas: 24-year high
Germany sets new solar record; after billions in subsidies and decades of development, solar now accounts for 4% of Germany's total electricity; Germany's utility rates among highest in the world; go solar!
Chevy Volt sales will set record in August; assembly line shuts down temporarily

Saturday Morning Potpourri -- There Might Be Something About the Bakken in This Post, But No Guarantee

For the Bakken, keep scrolling to earlier posts.

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EV

USA Today has a nice, a very nice write-up in today's issue reviewing Ford's all-electric Focus. Actually, "nice" is not the correct word, but I guess I'm using "nice" as in "nice writing," or "fun to read," regardless of content.

There's nothing wrong with electric cars that three times the driving range at half the price wouldn't cure.

In the case of the Ford Focus EV, that would mean about 230 miles of roaming room — not 76 — for about $20,000 — not $39,995 (or $32,495 if you qualify for $7,500 federal tax credit for driving a juicer).  

But for now, wheeling around in a pure electric car is like piloting a high-price gasoline car with only a quarter-tank of fuel that would take you several hours to refill (albeit for less money than topping off with gasoline).

On Saturdays, my wife and I generally drive up along the coast from Boston to Rockport. From our children's home in Belmont, it's a 43-mile drive according to Google Maps. Assuming we could find a re-charging station in Rockport, the trip would be doable. But, knowing how batteries "age" with time, I would worry about the "76-mile" range when I have a 50-mile trip. The writer of the linked story says as much.

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85-MPH: Only in Texas

A 41-mile stretch (within the driving range of an all-electric Ford Focus) of a Texas highway will have a speed limit of 85 mph, the fastest stretch of highway in the US. Texas State Highway 130, is a 91-mile toll road between Austin and San Antonio. (In today's print edition of the WSJ.)

Currently faster than California's bullet train.

By about 85 miles per hour.

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A Note to the Granddaughters

A  long, long story could be written about my bicycle ride throughout the Boston metropolitan area (downtown, Back Bay, Cambridge, Somerville, Arlington, and Belmont) but too busy to write the full story.

But the ride started out on a very, very positive note when I found a great little book for 50 cents at a yard sale:

• A Narrative Compass: Stories That Guide Women's Lives, edited by Betsy Hearne and Roberta Seelinger Trites

I am constantly on the lookout for books that I can share with my granddaughters, and the title of this one naturally attracted by attention.

Besides the introduction, I have only read the first two essays. The first essay by Rania Huntington was worth the price of the book even at full price: on Amazon.com, the soft cover is selling for $24; the hardcover for $65. As noted, I got it for 50 cents. Along with some genuine deerskin, horse-riding gloves (for $1.50), and a recommendation for a place to go horseback riding just 30 miles west of Boston. Wow.