A Whiting Wold Well Updated -- May 1, 2023

Locator: 44507B. 

 For newbies, the very nice Whiting Wold well, #19468, updated here.

MRO Wells In Reunion Bay Oil Field Updated -- May 1, 2023

Locator: 44506B. 

For newbies, these phenomenal MRO wells in Reunion Bay oil field have been updated. Many have gone over 500K bbls cumulative, and many are still flowing, no pump.

I-Bonds Vs Enbridge -- Idle Ramblng -- May 1, 2023

Locator: 44505D. 

JPM Surges In Pre-Market — “Buys” First Republic — May 1, 2023

Locator: 44505D. 

JPM / First Republic.

• The  rich get richer.
• Well done, Mr Dimon.
• Wow.

Opportunity, link here:

Valuation: link here.

According to analysts, the U.S. supermajors, ExxonMobil and Chevron, are valued on the market at around six times their cash flows, while TotalEnergies is valued at around 4x the cash flow, with UK-based BP and Shell valued even lower, at around 3 times their cash flows. 

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Back to the Bakken

MRO's Carlson well in Bailey oil field just went over 500,000 bbls cum. Link here.

Active rigs: 40.

Peter Zeihan newsletter.

WTI: $75.27.

Natural gas: $2.368.

Tuesday, May 2, 2023: 54 for the month; 54 for the quarter, 309 for the year
37176, conf, Hess, EN-Davenport-156-94-1003H-5,

Monday, May 1, 2023: 53 for the month; 53 for the quarter, 308 for the year
31212 (no typo), conf, BR, Gladstone 5-1-13TFH,

Sunday, April 30, 2023: 52 for the month; 52 for the quarter, 307 for the year
39183, conf, Ragnar, Dagny 1-2H,
38523, conf, Oasis, Rilynn Federal 5201 41-2 2B,
31213 (no typo), conf, BR, Gladstone 4-1-13MBH,

RBN Energy: Federal incentives, rising demand spur a slew of US clean ammonia projects, part 2. Archived.

The global push to decarbonize power generation, shipping and other energy-intensive sectors of the economy and the Biden administration’s efforts to heavily incentivize the development of low-carbon energy sources have resulted in a growing list of big clean ammonia projects in the U.S. Almost all of these proposed multibillion-dollar production facilities are located along the Texas-Louisiana coast, a region that offers easy access to natural gas supply, carbon sequestration sites, and export markets. In today’s RBN blog, we continue our look at the burgeoning market for “green” and (especially) “blue” ammonia with a review of the largest production facilities now under development.

Most interesting: OCI / Beaumont, TX

OCI, a chemical company based in the Netherlands, broke ground in December 2022 on a $1 billion, 1.1-MMtpa clean ammonia plant in Beaumont, TX (yellow-outlined box), that is expected to come online in 2025. The project’s site is adjacent to the company’s existing 1.4-MMtpa methanol-ammonia production facility and a 1.8-MMtpa methanol plant owned by Natgasoline, a 50-50 joint venture (JV) of OCI and Proman USA. OCI has said that area already has extensive hydrogen-related infrastructure (H₂ pipelines and H₂ storage) and the site and its planned utilities are sufficient to support a doubling of the new clean ammonia plant’s capacity to 2.2 MMtpa when demand warrants it. The company has also indicated that at least 95% of the CO₂ generated during the production of the clean hydrogen for the new plant will be captured and sequestered. An engineering-procurement (EP) contract for the facility was awarded to Maire Tecnimont in March 2022.

Linde announced in February 2023 that it will build, own and operate an ATR and an air separation plant at the same Beaumont site and has signed a long-term agreement to provide blue hydrogen and nitrogen to OCI’s new clean ammonia plant. Linde’s $1.8 billion in new facilities will be capable of supplying blue hydrogen, nitrogen and other industrial gases to other customers in the area. Also, South Korea’s Lotte Chemical said in March 2023 that it has signed a memorandum of understanding (MOU) under which OCI will supply unspecified volumes of clean ammonia from the new Beaumont plant to Lotte. Further, the companies plan to co-develop a global ammonia bunkering network to supply ammonia-fueled ships.

Disney -- Iger -- Streaming -- Update -- The Other Shoe Is Yet To Fall -- April 30, 2023

Locator: 44505D.

Streaming: link here. Streaming wars.

Disney, Iger working the issue.

Bullets:

• 7,000 layoffs by summer
• across all segments: Disney Entertainment, ESPN, Disney Parks, Experiences and Products
• but also reports point to a sizable number of cuts at Disney+
• top three executives were let go over the weekend
• these and other actions represent a larger shift for the streaming division's future

Iger, who stepped back into the CEO position in November, has remained hyper-focused on profitability even as investors shift focus away from subscriber growth and put more emphasis on margins. [Didn't we say that just a few days ago with respect to EVs?]

The company's direct-to-consumer division, which includes Disney+, Hulu and ESPN+, shed a whopping $4 billion-plus in its fiscal 2022 ended October 1, after it spent an estimated $33 billion on content last year.

Since that time, Iger has worked hard to establish new revenue streams like Disney's recently launched ad-supported tier, in addition to various price increases to help pare losses.

In its latest quarter, streaming losses narrowed to $1.1 billion in Q1 from $1.5 billion in Q4 — ahead of the company's previous guidance.

Still, losses were up compared to the year-ago period when direct-to-consumer losses totaled $593 million.

Iger reaffirmed the company's outlook of reaching streaming profitability by the year 2024.

Fascinating story. A billion here and a billion there isn't going to "cut it." We're going to need to see a huge change. The other show is yet to fall.