Friday, September 10, 2021

Week 36: September 5, 2021 -- September 11, 2021

Top story of the week:

Top international non-energy story:

Top international energy story:

  • Surging, all-time record prices for natural gas in UK and Europe
  • Venezuela hits rock bottom; China eyeing opportunities

Top national non-energy story:

Top national energy story:

Top North Dakota non-energy story:

Top North Dakota energy story:

Geoff Simon's top North Dakota energy stories:

Operators:

Operations:

Wells:

Fracking:

Pipelines:

Bakken economy:

Commentary:

Why US Shale Companies Are So Undervalued -- David Messler -- September 10, 2021

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here

Link here.

As an example let’s compare the cash generation between Occidental Petroleum, (NYSE: OXY) and NextEra Energy, (NYSE: NEE). One company produces oil and gas primarily, and the other participates in the “Green Energy” sector building windmill farms for electricity generation.

Investors in NextEra are looking past a mountain of debt to award the company a capitalization of $168 bn at the current share price of ~$85. Some of this is understandable given the figurative, “wind at the back,” of this industry. Windfarms could be the “tulip craze” of the modern era, and are endorsed and sanctioned by local, state, and the Federal government. However, if dividend security is analyzed using conventional metrics in the table above, investors in OXY should be sleeping much better at night, than those holding shares of NEE.

At some point, investors in NEE may have to come to grips with the fact that as attractive as this sector is socially, it is not generating returns sufficient to maintain generous dividends being offered.
Devon:
Another company, Devon Energy, has already begun returning capital to shareholders in the form of an innovative dividend policy and share repurchases. Jeff Ritenour, CFO of DVN commented in their recent analyst call about capital allocation-

“I would say the share repurchases is certainly moving up the list of options for us, potential options for us as we move through the back half of this year. We could absolutely supplement it with some incremental variable dividends and potentially some incremental share repurchases. I think the other thing we'll look at as we get further into the year and probably into 2022 is the potential to increase the fixed dividend as well.”

DVN’s newly implemented dividend policy includes a modest regular dividend of $0.44 per share combined with a special dividend that constitutes a plan to return as much as 50% of excess cash to investors.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.   

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Paddle Boarding -- Grapevine Lake, DFW, North Texas
Sophia and Her Mom

Gasoline Demand -- Update -- September 10, 2021

Gasoline demand: creeping up

Is anyone paying attention?

One can argue whether "we're back to normal" (Covid-19). I don't think we are, but yet, gasoline demand hit an all-time record earlier this year. Current gasoline demand continues to flirt with record demand for this time of year.

We actually went over ten million bbls earlier this summer. Link here


The tea leaves suggest "we" will push through 10.5 million bbls per day next summer (2022).

College Football: UND At Utah State -- UND Is A 6-Point Underdog -- CBS-Sports Network -- 8:35 P.M. CT (Weather Delay) -- September 10, 2021

Maybe more later.  

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Racing

In lieu of NASCAR racing tonight, the twins:


The twins, eighteen months old, on their balance bikes.

NFL Opener -- Highest Number Of Viewers Since 2015 -- Dallas Vs Buccaneers -- September 10, 2021

Before we get to last night, look at this. From September 6, 2021:

I do not know if there is any update or news regarding the July, 2021, story that Apple was in talks to acquire streaming rights to the "Sunday Ticket. Previously posted. But this is the app:

I track the "streaming wars" here. Apple was said to be looking at bidding for the NFL Sunday Ticket. 

And I've said for quite some time, it will be Amazon vs Apple before it's all over. 

And now the NFL Sunday Ticket. From CNBC earlier today, "Amazon likely front-runner for multiyear NFL Sunday Ticket." 

The NFL is expected to ask for $2 billion to $2.5 billion per year for the package and wants to wrap up discussions before the season ends in February. 
“Sunday Ticket” has been owned by DirecTV for the past 27 years
DirecTV, which AT&T spun out as a new company last month, renewed “Sunday Ticket” in 2014 for eight years. The current contract ends after the 2022-23 season. 
Amazon has a serious interest in the multiyear package of out-of-market games. 
Amazon in May agreed to pay about $1 billion per year to become the exclusive provider of Thursday Night Football games beginning next year. That deal made Amazon Prime Video the first-ever streaming service to own an exclusive NFL broadcast package.

NBCUniversal’s Peacock isn’t expected to be a serious competitor for the rights, a source said.

Apple is not having a good week. 

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Last Night -- The Opener

Link here

The NFL came into kickoff weekend looking for increased audiences over last season. After one game, the league is off to a strong start with the most-watched opener in six years.

Thursday night’s 31-29 victory by the Tampa Bay Buccaneers over the Dallas Cowboys averaged approximately 26 million viewers on NBC, Peacock and the NFL’s digital platforms according to preliminary data from Nielsen and Adobe Analytics.

It is a 20% increase over last year’s game between the Kansas City Chiefs and Houston Texas and the largest audience for an NFL opener since the Pittsburgh Steelers-New England Patriots game in 2015 averaged 27.4 million.

Of course, the 2020 season was played during the pandemic, with empty stadiums presenting a strange viewing dynamic, and many people’s viewing habits changing.

The average of 24.4 million viewers on NBC makes it television’s most-watched show since February’s Super Bowl on CBS. The audience peaked at 25.4 million between 9:45-10 p.m. ET.

Even though the league’s new television deal doesn’t officially kick in until 2023, some elements are taking effect this season, including Week 1 doubleheaders on both CBS and Fox. The featured 4:25 p.m. ET games will be Cleveland at Kansas City on CBS and Green Bay facing New Orleans in Jacksonville on Fox. The game was moved out of New Orleans due to Louisiana still recovering from Hurricane Ida.

The league has allowed doubleheaders on both CBS and Fox during the final week of the regular season. That means both networks will have 10 doubleheader weeks as the league expands to 17 games over 18 weeks for the first time.

Much more at the link.

Covid is so over. 

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From Breitbart News

Transitory inflation:

Putting food on the kitchen table has become much more expensive, squeezing household budgets at a time when many families are already stressed by the Delta variant surge hitting as kids go back to school. Food prices rose a full percentage point in August, up from six-tenths of a point in July, defying predictions that inflation would cool off, data from the Bureau of Labor Statistics showed Friday. 
Compared with a year ago, food prices are up 12.7 percent, outpacing the overall increase of 8.3 percent in the Producer Price Index. 
On an annual basis, that is the highest level of food inflation in records that go back to 2010. The monthly figure is the third-highest on record, following May 2020’s pantry-raid that emptied many grocery store shelves and February 2011.