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936horn

By 936horn
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Posted
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13 hours ago, 3adays said:

CHK keeps getting hammered on no real news. After their earnings report next week I may dump it.


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You’re playing with fire. You should dump it regardless. 

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I don’t know a great deal about Eagleford midstream. Can anyone tell me why a boon to EF production would NOT result in a similar differential predicament as exists in the Permian?  I believe this to be true but can’t articulate why.  

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skipmcgee

skipmcgee 304

Posted
Posted (edited)
13 hours ago, Rex Kramer said:

I don’t know a great deal about Eagleford midstream. Can anyone tell me why a boon to EF production would NOT result in a similar differential predicament as exists in the Permian?  I believe this to be true but can’t articulate why.  

Because there is a longer runway between EF production and capacity, and because even if limits are hit, it would be materially cheaper to ship a barrel by truck from the EF to Corpus or Houston than it would be from the Permian.

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Trey3216

Trey3216 15450

Posted
Posted
1 minute ago, skipmcgee said:

Because there is a longer runway between EF production and capacity, and because even if limits are hit, it would be materially cheaper to ship a barrel by truck from the EF to Galveston or Houston than it would be from the Permian.

Or Corpus

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Horns99

Horns99 172

Posted
Posted
I don’t know a great deal about Eagleford midstream. Can anyone tell me why a boon to EF production would NOT result in a similar differential predicament as exists in the Permian?  I believe this to be true but can’t articulate why.  


B/c there is plenty of pipe to get it out of eagle ford, where there are constraints to get out of the perm.
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I should’ve been more specific.  I know it would be cheaper to ship by truck or rail from South Texas.  So “similar differential predicament” probably is not going to happen, but could it widen with a huge boost to EF volumes?   I just don’t know the specific EF midstream situation.  

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skipmcgee

skipmcgee 304

Posted
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On 7/27/2018 at 2:44 PM, Rex Kramer said:

I should’ve been more specific.  I know it would be cheaper to ship by truck or rail from South Texas.  So “similar differential predicament” probably is not going to happen, but could it widen with a huge boost to EF volumes?   I just don’t know the specific EF midstream situation.  

SHOXHb7.jpg

Does this answer your question?

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Trey3216

Trey3216 15450

Posted
Posted (edited)

Natty report from this morning:  +35bcf vs estimate of 39bcf.

 

Currently below 5 yr minimum with some hot weeks ahead for TX, Southwest, and Cali.  

Article from yesterday...

https://seekingalpha.com/article/4193251-august-2-natural-gas-storage-report-inventories-remain-5-year-minimum-weeks-least

 

And yes, SA is often fraught with yahoos, but BlueGold Research does a pretty fine job with natty, as does HFIR.  

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Posted
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2 hours ago, T’Boo Ted Marshall said:

I’m considering a 1031 exchange out of my rental property into a WI to improve cash flow.
Anyone have experience with doing something like this?

A lot of my clients. Is this solely a tax deferral move or a mechanism to buy properties?  If the latter, consider whether or not you’re forcing that. Because depending on what you have to spend in sale proceeds, you could be buying marginal properties and might be better off participating in a small WI development program.

Heading to Mexico now and if I return next week with my head attached to my body, let’s get together for a drink to talk about it more. 

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LonghornJones

LonghornJones 838

Posted
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1 hour ago, PappyVanVinceYoung said:

Any thoughts on the FANG acquisition? I guess the under performance yesterday was worry about share dilution and just the issues that come with doubling the size of your company. It's hard for me to not look at it as a good entry point. 

$117.70 at open today 8/16/18. Benchmark.

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T’Boo Ted Marshall

T’Boo Ted Marshall 2779

Posted
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A lot of my clients. Is this solely a tax deferral move or a mechanism to buy properties?  If the latter, consider whether or not you’re forcing that. Because depending on what you have to spend in sale proceeds, you could be buying marginal properties and might be better off participating in a small WI development program.
Heading to Mexico now and if I return next week with my head attached to my body, let’s get together for a drink to talk about it more. 

Don’t forget your spitter.
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T’Boo Ted Marshall

T’Boo Ted Marshall 2779

Posted
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You sure you want to own WI? Make sure the operator has insurance and think about future P&A costs. Lots of shady operators out there.

How else do I get to achieve Oil Baron status?

 

Jokes aside I wouldn’t even consider partnering with an operator I didn’t know well and that doesn’t have a good track record.

I’m in the early stages of data gathering at this point.

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skipmcgee

skipmcgee 304

Posted
Posted
On 8/16/2018 at 7:38 AM, PappyVanVinceYoung said:

Any thoughts on the FANG acquisition? I guess the under performance yesterday was worry about share dilution and just the issues that come with doubling the size of your company. It's hard for me to not look at it as a good entry point. 

I like it.

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Dr Fear

Dr Fear 1286

Posted
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There is BLM lease auction today (Eddy and Chavez) and tomorrow (Lea) for federal lands in New Mexico.  Several tracts went earlier for $60k+/acre and then someone won a bid at $81,899/acre for a 1,240 acre tract. $101,554,760 total.  Lea should be even wilder tomorrow. 

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LurkingHorn

LurkingHorn 1091

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23 minutes ago, Dr Fear said:

There is BLM lease auction today (Eddy and Chavez) and tomorrow (Lea) for federal lands in New Mexico.  Several tracts went earlier for $60k+/acre and then someone won a bid at $81,899/acre for a 1,240 acre tract. $101,554,760 total.  Lea should be even wilder tomorrow. 

Where are you tracking this?

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skipmcgee

skipmcgee 304

Posted
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8 hours ago, Dr Fear said:

Same company just won a bid on a 640 acre and a 900 acre parcel @ $95,001/ac !!!!

https://www.energynet.com/property_information.pl?lot=50261

According to DI, the only operators to drill anything after 2015 in 26S 31E of Eddy Co are Conoco, Devon, EOG, and Mewbourne.  Could be one of them. 

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Guest

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On plane back from Midland.  Met with 7 companies today:

- Minerals buying isn’t going away.  

- A&D market will remain depressed at least in short term.  Anecdote is buyers are paying PV8 or PV10 for PDP only in areas that aren’t core Midland or Delaware. Or that is the fear / expectation-setting from advisory shops.  Eagleford PUDs a question mark. 

- A lot of guys hedged their Mid-Cush basis and are covered and ain’t slowing down. 

- I’m shit hammered and resumed dipping on planes 

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Storm the Field

Storm the Field 5360

Posted
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Hearing from clients and others in industry that there's a good chance Colorado's Initiative 97 will pass this November. That's gonna basically shut down drilling on non-federal land in the state. The new 2500 foot setback requirement would make almost all privately-owned land off limits to new drilling.

Seems like something that has potential to eventually end up at SCOTUS. Would effectively wipe out billions of dollars of value associated with mineral rights.

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skipmcgee

skipmcgee 304

Posted
Posted
15 minutes ago, Storm the Field said:

Hearing from clients and others in industry that there's a good chance Colorado's Initiative 97 will pass this November. That's gonna basically shut down drilling on non-federal land in the state. The new 2500 foot setback requirement would make almost all privately-owned land off limits to new drilling.

Seems like something that has potential to eventually end up at SCOTUS. Would effectively wipe out billions of dollars of value associated with mineral rights.

If that happens, XOG, SRCI, PDCE, BCEI, and HPR are fucked.

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Neonmoon

Neonmoon 38130

Posted
Posted
6 hours ago, Storm the Field said:

Hearing from clients and others in industry that there's a good chance Colorado's Initiative 97 will pass this November. That's gonna basically shut down drilling on non-federal land in the state. The new 2500 foot setback requirement would make almost all privately-owned land off limits to new drilling.

Seems like something that has potential to eventually end up at SCOTUS. Would effectively wipe out billions of dollars of value associated with mineral rights.

https://www.houstonchronicle.com/business/energy/article/Why-BP-decided-to-move-Houston-HQ-200-jobs-to-10796111.php

Oops 

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heinhorn

heinhorn 16

Posted
Posted
On 9/17/2018 at 5:22 PM, Neonmoon said:

https://www.houstonchronicle.com/business/energy/article/Why-BP-decided-to-move-Houston-HQ-200-jobs-to-10796111.php

Oops 

They moved to a red hot office market from a market where they have something like 450,000 SF of space on the sublease market.  The move makes no financial sense from an office occupancy cost standpoint. 

Separately, I was speaking to buddy of mine last weekend who owns an oil field services/wastewater disposal company that mostly operates in the Permian.  He is expecting a huge slow down in drilling/fracking due to take off capacity being maxed out.  He says the forward contracts for his services are about to crawl after blowing and going for the last year plus.  What is the surly consensus?  Is the market about to slow down?

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skipmcgee

skipmcgee 304

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45 minutes ago, heinhorn said:

They moved to a red hot office market from a market where they have something like 450,000 SF of space on the sublease market.  The move makes no financial sense from an office occupancy cost standpoint. 

Separately, I was speaking to buddy of mine last weekend who owns an oil field services/wastewater disposal company that mostly operates in the Permian.  He is expecting a huge slow down in drilling/fracking due to take off capacity being maxed out.  He says the forward contracts for his services are about to crawl after blowing and going for the last year plus.  What is the surly consensus?  Is the market about to slow down?

Mid/Cush basis differential has been shrinking since August, but it's still ridiculously high.  Capacity is going to be real tight until late 2019/early 2020 when EPIC, BridgeTex, Cactus II, etc come online.

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Neonmoon

Neonmoon 38130

Posted
Posted
11 hours ago, heinhorn said:

They moved to a red hot office market from a market where they have something like 450,000 SF of space on the sublease market.  The move makes no financial sense from an office occupancy cost standpoint. 

Separately, I was speaking to buddy of mine last weekend who owns an oil field services/wastewater disposal company that mostly operates in the Permian.  He is expecting a huge slow down in drilling/fracking due to take off capacity being maxed out.  He says the forward contracts for his services are about to crawl after blowing and going for the last year plus.  What is the surly consensus?  Is the market about to slow down?

Some will say no. Some will say yes. No one knows. No one ever does 

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Tailleur17

Tailleur17 361

Posted
Posted
15 hours ago, heinhorn said:

They moved to a red hot office market from a market where they have something like 450,000 SF of space on the sublease market.  The move makes no financial sense from an office occupancy cost standpoint. 

Separately, I was speaking to buddy of mine last weekend who owns an oil field services/wastewater disposal company that mostly operates in the Permian.  He is expecting a huge slow down in drilling/fracking due to take off capacity being maxed out.  He says the forward contracts for his services are about to crawl after blowing and going for the last year plus.  What is the surly consensus?  Is the market about to slow down?

Oil slightly down. Nat gas up.

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