DVN -- August 1, 2022

The new dividend:

• quarterly = $1.55
• 4 x $1.55 = $6.20
• current DVN price: $62
• dividend annual yield: 10%

From Reuters:

• 2Q22
• surpassed estimates
• raised quarterly dividend by 22%
• to $1.55 from $1.27
• lifted its 2022 (this year) production forecast too 600,000 bopd fromo 570,000 bopd
• due to better-than-expected (say what?) well performance; and,
• acquisition of Williston Basin assets (say what?)
• net earnings:
• $1.93 billion vs $256 million one year ago;
• $2.93 per share vs 38 cents / share a year ago;

The biggest takeaway for me with regard to DVN's earnings and share price:

• investors want dividends, not share buybacks.

Wells Fargo, San Francisco, Dallas, And All That Jazz -- August 1, 2022

Now that the word is out, I guess I can post it on the blog.

Wells Fargo is moving from San Francisco to the Dallas-Ft Worth (Texas) area.

Several years ago, every Texan had to sign a non-disclosure statement with regard to this move: if anyone asked, all we could say was "I don't know. I haven't heard a thing."

Just kidding.

But now, at Yahoo!Finance:

Years of rumors have been confirmed by an Irving City Council agenda. San Francisco banking giant Wells Fargo  is in the running to receive up to $31 million as part of economic incentive agreements with the city tied to a large-scale office development that could house as many as 4,000 workers.

The development, dubbed a “regional campus” within city documents, is expected to consist of 800,000 square feet of new office space set among a broader mixed-use campus featuring a couple of hundred multifamily units, restaurants and retail.

The office, which will be developed by Dallas-based KDC, will be constructed near the Irving Convention Center and Toyota Music Factory at the corner of West Las Colinas Boulevard and Promenade Parkway – one of the last and largest vacant sites in the area.

It looks like Wells Fargo is doing what several other huge corporations headquartered in California are doing. They are moving to Texas but not really moving. They will call the move a "new regional campus" but leave the corporate sign standing in California. 

Q&A -- August 1, 2022

A reader asked:

Q: I'm wondering if you know where the monthly production for each well is being recorded on the NDIC website ? It used to be on the Scout Ticket but hasn't been updated for a couple months now.

A: I'm not sure what the reader is asking: whether the scout tickets are now up to date, or if the NDIC is posting production at the website on the scout ticket or somewhere else?

After the NDIC updated its website, there were many significant changes.

It appeared to me, and I could be wrong, but my bookmark for the scout tickets no longer worked. 

When I "located" the scout tickets again, "production" did not show up, nor did a link to the file reports.

I could be wrong on that. 

But, "locating" the scout tickets from the NDIC menu solved the problem for both. Again, that was my perception and how I remember it.

Regardless, here are the links:

• scout tickets with monthly production (that's what I called it, but it's incorrect; doesn't matter; the link works)
• at that link, upper left hand corner, menu includes "scout ticket data" and "field production."
  
• scout ticket:
• in the "old days," scout ticket went immediately to "production data" -- at least the way my links were configured; but now, the scout ticket at this link has the link to "production history" (which was always there); again, it may be just the way I had the links and perhaps nothing changed at the NDIC. I don't know.  
• production history: my hunch is I was wrong when referring to the "well production history data" as the scout ticket. 

With regard to whether the data at "production history" is current or not, I assume the data is current. Most wells now show data for 6/22 (June, 2022) although some, like Oasis, are still showing data only through 5/22 (May, 2022).

I'm posting this now, but I have not checked to see if the links work. I will do that once this is posted and then correct if necessary. Later: I checked the links and they seemed to work.

Most interestingly, these links seem to work on the Firefox browser again. During the transition to the new system, I couldn't access the scout tickets / production histories on Firefox, but could access them on Chrome and Safari. 

Note: there may be typographical and content errors above. This is a conversation and the conversation may continue. 

All Bakken Wells Coming Off Confidential List The Last Few Days: CLR -- August 1, 2022

My in-box is filled with links to stories that need to be reported, but for the moment, those stories will have to wait. 

I had a long note on "recession" ready to go but the whole topic no longer interests me. I deleted it and won't be posting it. I'll just post "the poll" at the sidebar at the right. 

USAF: the "couple of fighters in the photo below are F-15s, with tail sign "LN," RAF Lakenheath, England. When I was assigned there, I flew right seat, F-111.

How 'bout them Cowboys? Link here.

Later: see first comment. Historical value of the Dallas Cowboys here. Imagine their value if they win a playoff game. LOL.

******************************
Back to the Bakken

Far Side: link here.

WTI: drops below $93.

Natural gas: $7.826.

Active rigs: 46 or thereabouts.

Tuesday, August 2, 2022: 2 for the month, 33 for the quarter, 372 for the year

• 38169, conf, CLR, LCU Foster FIU 6-28H1,

Monday, August 1, 2022: 1for the month, 32 for the quarter, 371 for the year

• 38701, conf, Summit Carbon Solutions, LLC, Slash Lazy H 5,

Sunday, July 31, 2022: 31 for the month, 31 for the quarter, 370 for the year

• 38168, conf, CLR, LCU Foster FIU 5-28H1,

Saturday, July 30, 2022: 30 for the month, 30 for the quarter, 369 for the year

• 37009, conf, CLR, LCU Reckitt Federal 3-22H1,

RBN Energy: will the propane market be prepared for winter? It depends. Part 2. 

The official start of propane heating season is only two months away, and inventories are skinny, pretty close to the five-year minimum. Should that be a concern? After all, stocks were at the low end of the range last year, and it was a relatively benign market, with few supply chain disruptions. But there’s a potential gotcha in that statement. Because last year the first three months of winter were quite mild in propane country. What would happen if the market were hit with weather events like what we saw during the “polar vortex” of 2013-14, a winter etched into the minds of all propaners who lived through it? Obviously, the outcome would be quite different.  In today’s RBN blog, we continue our series on the upcoming propane heating season with a look at the challenges that unusually cold weather could bring.

This is the second episode of a blog series focused on the outlook for U.S. propane markets during the upcoming 2022-23 heating season. Part 1 was mostly a look in the rear-view mirror, covering the huge increase in export volumes over the past few years, the wide swings in domestic propane seasonal demand, and a cycle-by-cycle review of propane price behavior over the past 18 months. The bottom line is that last year propane prices spiked way up prior to the onset of winter due to a confluence of bullish market developments, then virtually collapsed in November and December when winterlike weather failed to arrive on cue. In essence, prices were high when marketers were building stocks and low when it was time to move those supplies to market. That is not the way it is supposed to happen and can be painful for any company not using the most robust hedging strategies.  

Inflation -- August 1, 2022

Link here.