WAYZATA, Minn. , Nov. 8, 2016 /PRNewswire/ -- Northern Oil and Gas, Inc. today announced 2016 third quarter results and completion of the semi-annual redetermination of the borrowing base under Northern's revolving credit facility.
HIGHLIGHTS
Production totaled 1,236,708 barrels of oil equivalent (boe) or the third quarter, averaging 13,442 Boe per day, despite approximately 600 Boe per day of shut-in production during the quarter
Oil and gas sales, including cash from settled derivatives, totaled $50.7 million for the third quarter
Capital expenditures totaled $15.8 million during the third quarter, a reduction of 42.4% compared to the third quarter of 2015
Production expenses of $8.83 per Boe for the third quarter came in at the low end of management's expense guidance
Cash flow from operations for the first nine months of 2016 has exceeded capital expenditures, resulting in a $30 million reduction in debt since the beginning of the year
On November 8, 2016 , the borrowing base under Northern's revolving credit facility was reaffirmed at $350 million , providing quarter-end liquidity of $233.3 million , composed of $3.3 million in cash and $230.0 million of revolving credit facility availability
Northern's adjusted net income for the third quarter was $2.4 million , or $0.04 per diluted share. GAAP net loss for the quarter was $45.6 million , or a loss of $0.74 per diluted share, which was impacted by a $43.8 million non-cash impairment charge and a $5.6 million loss on the mark-to-market of derivative instruments. Adjusted EBITDA for the third quarter was $33.0 million . See "Non-GAAP Financial Measures" below for additional information on these measures.
All that anxiety about the Colonial Pipeline gasoline spill and interruption? Never mind:
Gasoline is expected to reach as far north as Charlotte, North Carolina within a day of Line 1's restart. Gasoline shipments on Colonial's system are expected to reach as far north as Baltimore, Maryland, by Tuesday and to reach their northern terminus in Linden, New Jersey, near New York Harbor, by Wednesday.
EIA's weekly retail price for regular gasoline for the Lower Atlantic (PADD 1C) was $2.17/g as of Monday, November 7, virtually unchanged from the previous week, and 6 cents/g below the national average. -- EIA
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The Tesla Page
We drove through Prum, Germany, many times when we were stationed at Bitburg Air Base many decades ago. Sleepy little town. I'm not sure why we visited Prum except that we had friends in the area. Link here.
In the midst of seeking investor approval for a merger with SolarCity Corp., Tesla made a surprise announcement that it’s acquiring a small German engineering firm to help automate and accelerate production at its factories.
The carmaker led by tech industrialist Elon Musk said in a blog post today that it plans to buy Grohmann Engineering, based in Prüm, Germany, and rename it Tesla Grohmann Automation.
The firm, led by founder Klaus Grohmann, specializes in highly automated manufacturing techniques and will help Tesla fulfill Musk’s goal of designing the “machine that builds the machine,” his vision of advanced vehicle production that’s a step change from current conventions.
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The Apple Page
Ireland will formally appeal that $14 billion Apple tax ruling this week. Link here.
Apple previously said it is "confident" the ruling "will be overturned" by European courts, but noted the process is "likely to take several years."
Apple said it has "provisioned several billion dollars for the U.S. for payment," but it does not expect any near-term impact on its financial results.
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The Atmospheric CO2 Page
Link here. Not much movement in the big scheme of things. Fortunately.
October, 2016: 401.57 (an increase of 0.8% yoy FWIW).
Russian Northern Fleet: has arrived -- almost. The last ping -- almost two hours ago -- showed the fleet was not far off the coast of Syria. The tug is not moving, suggesting this is probably where the aircraft carrier will stage.
OPEC "warns" oil prices will stay low for longer -- Wall Street Journal.
OPEC says its share of the global market will increase as US output from shale fields slows down. As if that matters, when Saudi Arabia is selling oil for $40/bbl and they need $100-oil but would be "happy" with $80-oil. From the linked article (which seems to be an old article -- it seems I've seen all this somewhere before), data points:
crude-oil prices will rebound much less than expected in the next four years
Let's repeat that:
crude-oil prices will rebound much less than expected in the next four years
Note two items within that forecast:
much less than expected
in the next four years
Wow.
Back to OPEC's long-term assessment:
OPEC assumes oil prices will rise by $5 a bbl in the medium term, reaching $60 by 2020
$60 is $20 less than the baseline figure of $80/bbl that it used in 2015 for the beginning of the next decade
The U.S. Energy Information Administration on Tuesday (today) raised its forecasts for U.S. crude production for 2016 and 2017.
In its monthly energy outlook report, the government agency forecast U.S. crude output of 8.84 million barrels a day this year, up 1.3% from the previous forecast. For 2017, it sees production rising to 8.73 million barrels a day, up 1.7% from last month's forecast.
The EIA also forecast an average price of $42.84 a barrel for West Texas Intermediate crude this year, up from a previous estimate of $42.78.
Brent crude is seen averaging $43.30 this year, down from the $43.43 forecast in October. December WTI crude (CLZ6) traded at $45.26 a barrel. December Brent crude (LCOF7) at $46.29 a barrel.
From The Wall Street Journal: Tesla Motors plans to charge for its Quick-Charge Access as Model 3 launch approaches. Tesla scales back how much new drivers can use its fast-charging stations without paying.
Tesla Motors Inc.
next year will stop providing unlimited free access to its
fast-charging stations for new buyers of its electric vehicles, a move
intended to help pay for the charging network and the launch of a cheaper and higher-volume electric sedan.
Tesla
has gained notoriety for free access to proprietary stations that can
recharge its $66,000 and up cars in far less time than a conventional
charger. While the company’s investment in the “Supercharger Network”
has been steep, it considers the cost a replacement for the hefty sums
most auto makers dish out for advertising or sales incentives.
The
Silicon Valley auto maker introduced the perk four years ago and
expanded it to Europe and Asia. But buyers of vehicles ordered after
January 1, 2017, will have to pay for charging after using 400 kilowatt-hours of
charging annually, equal to about 1,000 miles of travel.
How much will it cost to re-charge? "Less than the price to fill up a "comparable gas car." Whatever that means.
The Supercharger network has 734 locations world-wide, according to
the company. Car sales growth has strained the network’s capacity, and
Tesla has worried about its ability to offer service.
Tesla has said it has 373,000 reservations for the Model 3.
“The
increasing number of Model S and Model X vehicles, as well as the
significant increase in our vehicle fleet size that we expect from Model
3, will require us to continue to increase the number our Supercharger
stations significantly,” the company said in a quarterly filing this
month. “If we fail to do so, our customers could become dissatisfied,
which could adversely affect sales of our vehicles.”
Mr.
Musk first hinted at the company’s annual meeting in 2015 that the
charging network could change, noting that some people were “abusing”
the system by using it for daily charging rather than for quick fill-ups
between cities. This was causing congestion at the stations.
“There
are a few people who are quite aggressively using it for local
supercharging,” he said at the time. “We’ll sort of send them just a
reminder note that it’s cool to do this occasionally, but it’s meant to
be a long-distance thing.”
Russian Northern Fleet: seems to be moving quickly ahead -- earlier today it was just west (and north of Cyprus); it is now -- based on a ping nine minutes ago (about 5:00 p.m. Central Time), the fleet was almost past the strait that separates Cyprus from Turkey. Speed has picked up considerably: now 13.4 knots; previously the high I had seen was 12.5 knots and generally the fleet was moving at 11.1 knots. It looks like about 300 km to the Syrian coast.
************************************* Back to the Bakken
Active rigs:
11/7/2016
11/07/2015
11/07/2014
11/07/2013
11/07/2012
Active Rigs
38
64
193
181
188
One well coming off the confidential list Tuesday:
31732, 1,691, Newfield, Lost Bridge Federal 148-96-9-4-2H, Lost Bridge, t9/16; cum 4K over 3 days;
No new permits.
Four producing wells (DUCs) completed:
32033, 540, CLR, Norfolk 11-1H, North Tobacco, t10/16; cum 3K after 9 days;
32034, 460, CLR, Norfolk 10-1H1, North Tobacco, t10/16; cum --
32035, 630, CLR, Norfolk 9-1H, North Tobacco, t10/16; cum --
32036, 365, CLR, Norfolk 8-1H1, North Tobacco, t10/16; cum --
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31732, see above, Newfield, Lost Bridge Federal 148-96-9-4-2H, Lost Bridge:
