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August 15, 2017

Tri Global Energy Lands Leader Cudos, Adds Wind Projects

Dallas-based renewable energy company Tri Global Energy, has maintained its position as the leading developer of wind energy projects under construction in Texas, according to the U.S. Wind Industry Second Quarter 2017 Market Report from wind energy industry trade association, the American Wind Energy Association.

"Tri Global Energy also announced its expansion into Nebraska – the 100-MW Sugar Loaf Wind Energy Project. This is the first wind energy project for TGE beyond Texas borders. With the addition of the Sugar Loaf wind project, Tri Global Energy increases its wind portfolio to more than 2,900 MW of total wind power nationally." -- Wind Power Engineering

By Mike Shiloh

August 15, 2017

Holly Energy Interest Buy From Plains for SLC Pipelines

Dallas' Holly Energy Partners LP has inked interest purchase agreements with affiliates of Plains All American for two pipelines for a total price of $250 million, the company says.

The deal effectively gives Holly ownership of the two lines.

The Rest of the Story, Subscribers Only

By Mike Shiloh

August 15, 2017

Carrizo Closes On Delaware Basin Purchase

Carrizo Oil and Gas Inc. says it's closed on a deal to purchase more than 16,000 net acres in Texas for about $648 million in cash.

The Delaware Basin land purchased from ExL Petroleum Management LLC and ExL Petroleum Operating Inc. is primarily in Reeves and Ward counties, according to Houston-based Carrizo.

The land has 14 wells producing about 9,500 Boe/d -- two wells are cleaning up -- and crews are now completing one well while awaiting the arrival of new rigs.

By Mike Shiloh

August 15, 2017

Camber Readies Remedies for NYSE as Chairman Resigns

Camber Energy Inc.'s board chairman has resigned as the company works to cut costs and head off a possible delisting by the New York Stock Exchange.

The exchange said earlier this month that the Houston-based crude and natural gas company has not been in compliance with some listing standards and is giving Camber until September 5th to come up with a plan of remedy.

The Rest of the Story, Subscribers Only

By Mike Shiloh

August 15, 2017

Texas Electric Cooperatives Has New Deal With South Carolina Firm

Austin-based Texas Electric Cooperatives (TEC) is contracting with a South Carolina company to manage the cooperative's wood utility pole manufacturing plant in Jasper, about 40 miles southeast of Lufkin.

The new management services are to be provided by Orangeburg, South Carolina's Cox Industries, a nationwide provider of wood products which has 16 manufacturing plants across America.

TEC, an association of 75 electricity distribution, generation and transmission cooperatives, says the new alliance with Cox will reduce operating costs while allowing TEC to benefit from Cox's mass wood-purchasing market agreements "to drive down the costs of raw materials."

By Mike Shiloh

August 15, 2017

Rockcliffe Adds Texas Haynesville Shale Acres to Pending Buys

Privately-held Rockcliffe Energy LLC says it's purchased about 60,000 net acres of rights in the Haynesville Shale play primarily in Panola and Harrison counties in Texas.

The Houston-based company, which is active in several Texas regions including the San Andres and Delaware basins, has not disclosed the seller or the purchase price.

The Rest of the Story, Subscribers Only

By Mike Shiloh

August 15, 2017

Texas Energy Report Closing Top Texas Energy Stocks

WTI down 0.04 to close at $47.55 - change 0.08%

Brent up 0.21 to close at $50.94 - change 0.41%

Natural gas down 0.02 at $2.94 - change 0.81%

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CLOSING OIL & GAS STOCKS

Anadarko (APC) up 0.22 at 43.24 - change 0.51%

Apache (APA) down 0.03 at 41.54 - change 0.07%

Chevron (CVX) down 0.14 at 108.57 - change 0.13%

ConocoPhillips (COP) down 0.04 at 44.50 - change 0.09%

Devon (DVN) down 0.15 at 30.92 - change 0.48%

Energy Transfer (ETP) down 1.01 at 18.62 - change 5.15%

EOG Resources (EOG) down 0.97 at 87.02 - change 1.10%

ExxonMobil (XOM) down 0.19 at 78.04 - change 0.24%

Halcon (HK) down 0.13 at 6.13 - 2.08%

Marathon Oil Corp. (MRO) down 0.10 at 11.53 - change 3.65%

Noble Energy (NBL) down 0.02 at 24.57 - change 0.08%

Occidental Petroleum (OXY) down 0.62 at 60.62 - change 1.01%

Parsley Energy (PE) down 0.37 at 24.63 - change 1.48%

Phillips 66 (PSX) down 0.20 at 83.68 - change 0.24%

Pioneer Natural Resources (PXD) up 0.86 at 133.70 - change 0.65%

Valero (VLO) up 0.36 at 67.15 - change 0.54%

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CLOSING TOP UTILITY STOCKS

American Electric Power (AEP) up 0.47 at 71.52 - change 0.66%

Calpine (CPN) up 0.07 at 13.91 - change 0.51%

CenterPoint (CNP) up 0.04 at 28.84 - change 0.14%

Entergy (ETR) up 0.52 to close at 77.57 - change 0.67%

Exelon Generation (EXC) up 0.24 at 37.84 - change 0.64%

NRG (NRG) unchanged 0.80 at 25.47 - change 0.00%

Vistra Energy (VST) up 0.13 at 17.51 - change 0.75%

By Mike Shiloh

August 14, 2017

Oil Price Between $40 and $50 This Year, Berkshire Exits GE: Barrons

"Wells Fargo believes oil prices will staying a range of $30 and $60 for the next few years, but it sees "a tighter range for the remainder of 2017" between $40 and $50 for West Texas Intermediate." -- Barrons

Also from Barrons: Warren Buffett's Berkshire Hathaway has sold all 10.6 million shares of General Electric.

And Marketfield's Michael Shaoul sent along this chart showing the surprising state of GE stock relative to the overall S&P -- currently about as low or lower than during the depths of the Great Recession:

By Mike Shiloh

August 14, 2017

Texas Comptroller Kicks Off Tour of Texas Manufacturing Plants with Visits to Central Texas Cities: Press Release

(AUSTIN) — Texas Comptroller Glenn Hegar kicked off a tour of Texas manufacturing plants today with visits to Samsung in Austin and TECO-Westinghouse Motor Company in Round Rock. During his Good for Texas Tour: Manufacturing Edition, Hegar will tour facilities, meet with local officials and release the results of a study the Comptroller’s office recently completed examining the economic impact of the manufacturing industry. 

“Texas has an extraordinary manufacturing economy,” Hegar said. “The state’s resources make it a natural leader in petroleum and chemical manufacturing, our research institutions have fostered computer-related and other high-tech manufacturing, and our business-friendly environment and skilled labor force have helped create a dynamic automotive manufacturing sector.” 

The computer and electronics subsector, which includes Samsung, is responsible for $47.1 billion in annual exports from Texas and more than 300,000 direct and indirect jobs, and contributes $28.6 billion to the state’s gross domestic product (GDP). 

“This subsector offers high-paying jobs and provides a considerable portion of the state’s exports,” Hegar said. “It is, by far, our fastest growing in terms of economic activity, increasing by 584 percent in the last 20 years, and averaging an annual growth rate of 11.3 percent.” 

The electrical equipment, appliance and component subsector, which includes TECO-Westinghouse, accounts for $11.7 billion in annual exports and more than 45,000 Texas direct and indirect jobs, and contributes $2.5 billion to the state’s GDP. 

“This subsector comprises several innovative and advanced industries that offer above-average wages,” Hegar said. 

In all, Texas manufacturers were responsible for 3 million direct and indirect jobs in 2016. The average annual salary for direct jobs is nearly $75,000. In 2016, Texas manufacturers exported $210.3 billion in goods and contributed $225.8 billion to the GDP. 

For more information on the tour, including in-depth Texas manufacturing data, visit the Comptroller’s website.

 

By Texas Comptroller of Public Accounts

August 11, 2017

Texas Energy Report Closing Top Texas Energy Stocks

WTI up 0.23 to close at $48.82 - change 0.47%

Brent up 0.13 to close at $52.02 - change 0.25%

Natural gas unhanged at $2.98 - change 0.00%

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CLOSING OIL & GAS STOCKS

Anadarko (APC) down 0.16 at 43.54 - change 0.37%

Apache (APA) down 0.22 at 42.39 - change 0.52%

Chevron (CVX) down 0.88 at 109.23 - change 0.80%

ConocoPhillips (COP) down 0.18 at 44.79 - change 0.40%

Devon (DVN) down 0.15 at 31.61 - change 0.47%

Energy Transfer (ETP) down 0.32 at 19.51 - change 1.61%

EOG Resources (EOG) down 0.59 at 88.53 - change 0.66%

ExxonMobil (XOM) down 0.76 at 78.21 - change 0.96%

Halcon (HK) up 0.19 at 6.45 - 3.04%

Marathon Oil Corp. (MRO) up 0.07 at 12.11 - change 0.58%

Noble Energy (NBL) down 0.27 at 24.65 - change 1.08%

Occidental Petroleum (OXY) down 0.21 at 61.13 - change 0.34%

Parsley Energy (PE) down 0.13 at 25.35 - change 0.51%

Phillips 66 (PSX) down 0.20 at 83.34 - change 0.24%

Pioneer Natural Resources (PXD) down 1.24 at 134.02 - change 0.92%

Valero (VLO) down 0.05 at 66.15 - change 0.08%

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CLOSING TOP UTILITY STOCKS

American Electric Power (AEP) down 0.80 at 70.56 - change 1.12%

Calpine (CPN) up 0.15 at 13.81 - change 1.10%

CenterPoint (CNP) down 0.31 at 28.82 - change 1.06%

Entergy (ETR) down 0.64 to close at 76.20 - change 0.83%

Exelon Generation (EXC) up 0.09 at 37.50 - change 0.23%

NRG (NRG) up 0.28 at 24.67 - change 1.15%

Vistra Energy (VST) up 0.21 at 17.21 - change 1.24%

By Mike Shiloh

August 10, 2017

Linn Energy's Fresh Start

Linn Energy Inc. has paid off it's old creditor and secured a new line of credit significantly improving its financial position.

In a statement, Houston-based Linn said this week that it's paid off its old debt, administered by Wells Fargo, estimated in February to be about $1 billion.

The Rest of the Story, Subscribers Only

By Mike Shiloh

August 10, 2017

‘Drill, Baby, Drill’ Plan Shows Results

By Alex Mills

Just a few years ago there was a debate over energy policy that included the phrase “drill, baby, drill.”  The belief was that if drilling for oil in the U.S. increases so would oil production and gasoline prices would decline.

President Obama, however, did not believe that more drilling and production of oil would have any impact on the price of gasoline.  He said that proponents of “drill, baby, drill” could not achieve the goal of driving down gasoline prices to $2.

He said the "three-point plan for $2 gas: Step one is drill, step two is drill, and step three is keeping drilling" would not work.

He went on to say that "the American people aren't stupid. They know that's not a plan."

Well, crude oil production has increased dramatically, and crude oil prices have decline to less than $2 per gallon before taxes.

Crude oil futures for September delivery on the NYMEX closed at $49.59 on Wednesday, and gasoline closed at $1.6448 per gallon.

Oil inventories in the US fell by 1.5 million barrels in the week to July 28th, according to the Energy Information Administration (EIA).

The report also showed estimated weekly gasoline demand at a record high 9.842 million barrels.

Distillate demand is 14.5 percent higher than during the same period last year.

Oil prices came under pressure last week on news top oil producing countries may be boosting output. OPEC oil output rose in July to a 2017 high, a recent survey found, led by a further recovery in supply from Libya, one of the countries exempt from a production-cutting deal. Iran's oil exports also increased. Russia's oil output stood at 10.95 million bpd in July, unchanged for a third month and in line with its pledge to curb production, government data showed on Wednesday.

EIA projects U.S. oil production will average almost 10 billion barrels a day in 2018, which would beat the previous record of 9.6 billion in 1970.

Whether or not you are and advocated of the “drill, baby, drill” plan, the fact remains that the increase in drilling and oil production has created an oversupply of petroleum, which has caused gasoline prices to drop below $2.

Alex Mills is President of the Texas Alliance of Energy Producers.  The opinions expressed are solely those of the author.

By Alex Mills

August 10, 2017

Worth Noting: N. Korea Jitters Spike Social Media Talk of Nuclear War

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SocialFlow analyzed Twitter mentions of particular terms surrounding the North Korean crisis in early August.

"Nuclear war" dominates social media amid North Korean tensions

By Mike Shiloh

August 10, 2017

Black market fuel is rampant, making millions: AP

A black market for diesel and gasoline has rapidly spread around the nation, with organized crime gangs using fraudulent credit cards to siphon millions of dollars in fuel from gas stations into large tanks hidden inside pickup trucks and vans, the Associated Press reported Thursday.

"Stealing fuel can be less risky than selling drugs or other illegal endeavors, and criminals can make $1,000 or more a day re-selling the stolen fuel at construction sites and unscrupulous gas stations, or to truckers looking to cut costs, investigators and industry experts say.

"'It’s pretty rampant,' said Owen DeWitt, whose Texas-based company, Know Control, focuses solely on helping gas stations prevent fuel theft.

"He said the crime is worst along Interstate 10, from Jacksonville, Fla., to the Los Angeles area.

"'California and Florida are the two worst; Texas is No. 3.'”

By Mike Shiloh

August 9, 2017

Crude Supplies Dropped Last Week, Gasoline Up: EIA, API

US commercial crude inventories were down by 6.5 million barrels for the week ended August 4th, according to the Wednesday figures from the US Energy Information Administration.

The total crude inventory is now at 475.4 million barrels.

However, gasoline supplies increased 3.4 million barrels, according to the EIA.

This, after the American Petroleum Institute reported Tuesday a crude inventory drop of nearly eight million barrels last week, with gasoline inventories up 1.5 million barrels and distillates down by 157,000 barrels.

By Mike Shiloh

August 9, 2017

Texas' American Midstream and Targa JV for Cayenne LNG Line

Houston's American Midstream Partners says its joining with Targa Midstream Services  to create the Cayenne pipeline in Louisiana.

American Midstream is including conversion of an underutilized natural gas pipeline in the new joint venture, to be used for delivering natural gas liquids (NGLs).

The Cayenne will deliver NGLs from the Venice Energy Services Co. LLC gas processing plant in Venice, Louisiana -- which is operated by Targa --  to Enerprise Products' Toca, Louisiana, pipeline for delivery to Enterprise's Norco fractionator outside New Orleans.

The Cayenne, to operated by Targa with initial capacity of 40,000 barrels per day, is expected to be operational by the end of the year.

By Mike Shiloh

August 8, 2017

Railroad Commission of Texas Announces New Seismologist: RRC

AUSTIN - The Railroad Commission of Texas (RRC) today announced Dr. Aaron Velasco will serve the agency as RRC seismologist. Dr. Velasco is a professor of Geological Sciences and Director of Interdisciplinary Initiatives at the University of Texas - El Paso (UTEP). He will continue to serve in his capacity as an educator and researcher at UTEP.
 
"I congratulate Dr. Velasco on his selection as our new staff seismologist at the Railroad Commission of Texas," Railroad Commission Chairman Christi Craddick said. "His expertise in the study of seismology will be an asset to the agency and the state. I also want to thank Dr. Craig Pearson for his time and dedication to the Commission in serving as our very first seismologist. Dr. Pearson was instrumental in the development and implementation of some of the most stringent and comprehensive rules in the nation related to the issue of induced seismicity, and we are grateful to have had his knowledge and counsel at such an important time."
 
Commissioner Ryan Sitton said, "The Railroad Commission takes the issue of induced seismicity very seriously. I look forward to working with Dr. Velasco to continue to ensure we have necessary procedures in place to minimize and mitigate potential risks. I've personally attended meetings of the Technical Advisory Committee and feel confident that the work BEG and other academic institutions are doing will help us better understand the science around this important issue. Dr. Velasco is an important addition to the team who has been working on this issue since I joined the Commission."
 
Commissioner Wayne Christian said, "I welcome Dr. Velasco to the Railroad Commission of Texas and look forward to working with him to ensure the safe and reliable production of oil and gas in our great state. There is nothing more important to me than the safety of our citizens."
 
As the RRC's seismologist, Dr. Velasco will serve on the Governor's Technical Advisory Committee for the TexNet Seismic Monitoring Program run by the University of Texas - Austin's Bureau of Economic Geology. He will also work with RRC staff in reviewing disposal well permit applications in areas of historic seismicity to ensure proper requirements are in place to prevent or minimize the potential for induced seismic activity. Additionally, Dr. Velasco will serve in an advisory capacity to the RRC on issues and policy related to seismicity and energy production in Texas.
 
"The Railroad Commission is considered a global leader in energy regulation, and I'm honored and humbled to serve my fellow Texans and this historic agency as RRC seismologist," Dr. Velasco said. "I share the agency's mission to protect public safety and the environment, and I will do that by putting my years of experience and research in seismology and understanding to work for Texas."
 
UTEP President Diana Natalico said, "Dr. Velasco's expertise in seismology and geology will enable him to contribute unique and valuable perspectives to the work of the Railroad Commission of Texas. In addition to their teaching and research, UTEP faculty members like Dr. Velasco help inform public policy issues at local, state and national levels and validate UTEP's growing reputation as a public research university."
 
Dr. Velasco earned his Bachelor of Science degree in applied geophysics from the University of California - Los Angeles in 1988 and his doctorate in geophysics from the University of California - Santa Cruz in 1993. He has held several teaching positions at UTEP since joining the university faculty in 2002. Prior to UTEP, Dr. Velasco held several technical and research positions, including work at Los Alamos and Lawrence Livermore National Laboratories. 
See Dr. Velasco's Curriculum Vitae here.
 
Photo Courtesy of UTEP Communications

By Railroad Commission of Texas

August 8, 2017

Top Natural Gas Vehicle Counties in Texas: TNGF News Release

Dallas-Ft. Worth, Houston, El Paso and Corpus Christi Lead the State

Dallas County, with 3,579 vehicles and 25 stations, is the top natural gas vehicle county in the state of Texas, according to a recent survey conducted by the Texas Natural Gas Foundation (TXNG).

“As our survey indicates, Texas is making strides in replacing conventional fuels with natural gas,” said State Representative and TXNG President, Jason Isaac. “Texas has catapulted the United States to the largest producer of natural gas in the world. According to the U.S. Energy Information Administration, Texas holds more than one-fourth of the nation's proved natural gas reserves.

Top Natural Gas Vehicle Counties in Texas

 

Vehicles

Refueling Stations

1. Dallas - 3,579

1. Harris (Houston) - 28

2. Harris (Houston) -1,825

2. Dallas - 25

3. El Paso - 390

3. Tarrant (Fort Worth) - 16

4. Nueces (Corpus Christi) - 349

4. Bexar (San Antonio) - 13

5. Tarrant (Fort Worth) - 287

5. El Paso - 6

6. Travis (Austin) - 238

6. Nueces (Corpus Christi) - 5

7. Bexar (San Antonio) - 199

7. Travis (Austin) - 5 (tied)

8. Collin (Plano)- 123

8. Midland - 3

9. Webb (Laredo) - 84

9. Montgomery (Conroe) - 3 (tied)

10. Freestone - 84 (tied)

10. Webb (Laredo) - 3 (tied)

 

“Natural gas currently supplies less than five percent of the total fuel used for transportation in the United States,” said Isaac. “We should encourage the use of Texas fuels, like natural gas, that help build our state’s roads and support our public education, while also growing our economy.”

There are currently 9,040 natural gas vehicles on Texas roads –  a 27 percent increase since August 2014. Planned additions by fleets such as VIA in San Antonio and Houston Metro will soon swell that number to 10,084. Refueling stations under development will add an additional 33 stations to the state’s current 86 public fueling stations and 67 private stations.

“In a recent study, idling diesel engines emitted five times as much harmful emissions as natural gas,” said Isaac. “Whether it’s your city’s garbage trucks or the 18-wheelers on the highways, natural gas trucks provide quiet, clean transportation that relies on our abundant, domestic natural resources.”

Fleet managers interested in transitioning to natural gas or expanding their current use can find the latest information on regulatory changes and incentives at TXNG’s website, or in the organization’s free monthly newsletter.

 

Natural Gas Refueling Stations in Texas

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 Source: Texas Natural Gas Foundation

By Texas Natural Gas Foundation

August 8, 2017

Earthquake Caller: Stop this Fracking!

Courtesy of KWTV Oklahoma City, OK:

Wednesday night’s 4.2 magnitude earthquake was followed by power outages.

And at the Edmond dispatch center, hundreds of calls rolled in after that.

“It’s horrible! It’s shaking down our house!” one caller said.

“Yes ma’am. Yeah, we felt it too,” the dispatcher replied.

“They have to stop! Stop this fracking! It has to stop!” the caller continued.

“Ma’am, we don’t have anything to do with the fracking, OK?” the dispatcher said.

By Mike Shiloh

August 7, 2017

Electricity Ratings Co. Gives High Marks to Champion, Gexa, StarTex, Green Mountain, Direct

Be innovative and up to date and a Texas electricity provider and be among the best, according to the company Texas Electricity Ratings, which offers daily electricity rates for consumers on its website and says it strives to bring "transparency" to the state's retail market.

Plans for innovation, use of smart meters and home energy efficiency, online order experience and mobile friendliness are among the criteria used by the company for its latest rankings of state retail electricity providers, with Houston's Champion Energy rated number one.

Gexa Energy, StarTex Power, Green Mountain Energy and Direct Energy, in that order, complete the top five, Texas Electricity Ratings said.

The companies outscored more than 35 other Texas electricity retailers to head the list.

Texas Electricity Ratings, by way of explanation for its latest power retailer ranking, said "Gexa Energy finished second in the top five with straightforward competitive pricing and outstanding customer outreach programs.

"StarTex Power's jump to the number three position was powered by affordability, including several straightforward low-rate plans and their customer communications.

"In the number four position, Green Mountain Energy's vision for green, renewable energy, plan innovation, and solar options resonated.

"Direct Energy's move into smart home technology, great customer communication, and social media outreach propelled them into 5th place overall.

"Every single electricity provider in the top five ranked well in 'The Basics,' which includes customer order experience, dependable billing practices, and simple, straightforward plans."

By Mike Shiloh

August 7, 2017

Tyler Technologies To Form Microgrid for Tech Campus Buildings

Plano's Tyler Technologies is installing new-generation power conversion units to augment solar panels in its public sector information technology business.

Tyler manages data and information for government entities such a police, schools and legal systems and is working with a solar developer to install a series of two 150 kV solar panel arrays coupled with 300 kWh of storage.

W Energies Solar One says its providing systems aimed at powering two buildings in Tyler's tech facilities.

The arrays and storage units will also couple with Ideal Power devices which will allow two-directional flow of electricity to and from the microgrid itself, to and from the outer power grid and between the storage units and the grid, according to the company.

By Mike Shiloh

August 7, 2017

Southern Co. Builds Concho County Wind Farm with Pre-Sold Generation, Credits

General Motors and General Mills will receive power from farm near San Angelo when completed, Southern says

A subsidiary of Georgia's Southern Company now has its 5th Texas wind project.

The Concho County, Texas, 148 MW Cactus Flats Wind Facility was purchased by Southern subsidiary Southern Power from Colorado-based Renewable Energy Systems Americas Inc. (RES) for an undisclosed price.

The project east of San Angelo includes 48 wind turbines by Vestas, which will co-maintain and co-operate the wind farm with Southern Power.

RES developed Cactus Flats and is building the site, which is expected to be completed by the end of the third quarter of 2018.

RES says it's the company's 23rd renewable energy project in Texas.

Southern Company says the facility, once completed, will sell full capacity and related renewable energy credits to General Motors and General Mills.

Southern also has the Bethel Wind Facility in Concho County as well as the Salt Fork in Donley and Gray counties, the Tyler Bluff facility in Cooke County and the Wake Wind Facility in Crosby and Floyd counties in Texas.

By Mike Shiloh

August 7, 2017

Spectra Energy Increases Earnings, Net Income and Quarterly Distribution

Spectra Energy Partners is registering what it calls "continued earnings and cash flow growth" because of capital expansions and "solid base business performance" in the second quarter.

Earnings were $548 million with net income from controlling interests of $328 million for the quarter, compared with $448 million in net income and $287 million for second quarter 2016.

Indeed, Houston-based Spectra points to the July 3rd on-time, on-budget service startup of the Sabal Trail Phase One natural gas transmission pipeline, more than 500 miles of pipe to South Florida, in cooperation with Duke Energy and NextEra Energy Inc.

The second quarter, the company added, included $29 million in "non-recurring special items" which decreased diluted earnings.

The company also announced the 39th consecutive quarterly distribution increase that's more than 7% higher than the distribution announced at this time last year.

Chairman and president of Spectra Bill Yardley said in a statement that "Spectra Energy Partners achieved another solid quarter thanks to the reliability and strength of our fee-based business model with no direct commodity exposure and virtually no volume exposure, and further enhanced by the successful execution of our expansion program.

By Mike Shiloh

August 7, 2017

American Patriot buys Texas assets: Report

Australia-listed American Patriot Oil & Gas has made the transition to a production company with the acquisition of producing assets in Texas, reports Upstream Online.

"American Patriot has acquired assets in south Texas with combined proven reserves totalling 900,000 barrels of oil equivalent for US$4.5 million.

"The acquisitions are taking place over two tranches, with the first seeing the company gain a 100% interest in assets currently held by Safari Oil & Gas Production and Anasazi New Ventures in Hidalgo,"

By Mike Shiloh

August 7, 2017

Magellan Midstream 2Q Profit Increases

Magellan Midstream Partners reported an increase in second quarter profits with a disributable cash flow of more than $250 million, according to the company.

Net income was more than $210 million, up from about $188 million in the second quarter of last year.

Magellan attributed its stronger position to a number of factors that include stronger-than-expected demand for distillate and increased crude oil shipments through the BridgeTex pipeline.

For details, the company said in a statement that "refined products operating margin was $214.4 million, an increase of $37.1 million. Transportation and terminals revenue increased $30.1 million between periods... [and] Crude oil operating margin was $105.8 million, an increase of $8.9 million.

"Marine storage operating margin was $32.2 million, an increase of $3.3 million.

"Depreciation and amortization increased due to recent expansion capital expenditures, and G&A expense increased because of higher employee headcount mainly as a result of expansion projects and more equity-based compensation expense due to timing of accrual adjustments."

By Mike Shiloh

August 7, 2017

Emerge's Frack Sand Business Improving

Demand for fracking sand is reaching record levels with twice the amount of sand used per well than was the norm just three years ago, and Ft. Worth-based Emerge Energy Services is riding the trend, but the going can get rough.

Emerge's conversion of a construction material sand mine in the San Antonio area was completed recently, with the $20 million project now operational, which should increase future profits.

It's recently-released second-quarter earnings statement revealed that while Emerge is now selling more sand than at any time in the company's history, but with revenue of more than $84 million the net income was about $4.7 million.

The problem appears to be production bottlenecks. For example, as Madison.com points out, the company's facility at Kosse, Texas, is capable of producing 600,000 tons of dry sand per year but Emerge has been unable to turn out more than 220,000 tons in the year -- and production at the Kosse plant has actually declined from the previous quarter.

While the company has said it's working to expand the facility, progress has been slow, with the result a heavy weight on Emerge's profits.

Still, the company's revenue and earnings have been improving over the past two quarters and with the strength of the frack sand market and anticipated profits from the San Antonio plant, Emerge's struggles have been paying off and the future appears bright.

By Mike Shiloh

August 7, 2017

Tesoro Now Andeavor: HBJ

"The San Antonio refining company formerly known as Tesoro," the Houston Business Journal reports. 

The company is now called Andeavor Corp.

"Andeavor was created following the merger of Tesoro and El Paso-based Western Refining Inc. (NYSE: WNR) earlier this year.

"The $6.4 billion deal closed in June when the newly merged company announced that it would be rebranded on Aug. 1."

By Mike Shiloh

August 6, 2017

Mineral Liens Can Be Contractually Waived In Texas: Law 360

In a case that is likely to influence future drafting and negotiation of master services agreements between operators and oilfield service providers, the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, recently held that an advance contractual waiver of mineral liens contained in a master service agreement (MSA) between an oil and gas operator (in this case, Energy & Exploration Partners Operating, LP (ENXP)) and multiple oilfield service companies was enforceable.

By Law 360

August 2, 2017

Worth Noting: API Shows Increase In Crude Inventory

American Petroleum Institute Tuesday report: U.S. crude oil inventories up 1.8 million barrels last week, a 4.8 million barrel decline in gasoline stocks and a 1.2 million barrel fall in distillate stocks

By Mike Shiloh