Daily Energy Standup Episode #316 – Navigating Uncertainty: Challenges and Doubts on the Path to Net Zero

Daily Standup Top Stories

Net Zero’s days are numbered

February 24, 2024 Stu Turley

Shell’s LNG trading makes $2.4 billion in final 2023 quarter, sources say

February 24, 2024 Stu Turley

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

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Michael Tanner: [00:00:14] What’s going on, everybody? Welcome in to the. Monday, February 26th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines starting off. Net zero days are numbered. Next up, Shell’s LNG trading makes 2.4 billion in the final quarter of 2023. That’s according to sources there. Next up Qatar Energy to further boost LNG output. All this comes in light of what’s been happening at home with the Biden administration stopping LNG exports. So it’s all completely fantasy. And then finally, research warns net zero policies risk plunging thousands into poverty. Stu. Then toss it over me. I will quickly cover what’s going on in the oil and gas finance markets. We saw prices slide the last really two days. That Thursday. Friday we saw rig counts come out with some surprising stuff at then, we did see a merger between Chord Energy and Enerplus I’ll kind of give some quick highlights and thoughts there. And then there are three companies vital, southwestern and EOG, all with some interesting earnings nuggets that I want to just quickly highlight. And then we’ll let you guys get out of here. appreciate everybody checking us out here. Energy news Beat podcast. As always I’m Michael Tanner joined by executive producer, the show premiere of the show and the director of the world’s greatest website, energy. Newsbeat.com, Stuart Turley. Kick us off. [00:01:33][78.3]

Stuart Turley: [00:01:33] Hey, let’s get ready to rumble here. Let’s start out with net. Zero’s days are numbered. I can only hope. Is. There’s no way we’re going to get there, Michael. And, this one is going to be kind of tough. The public does not believe or has not been made to understand that it’s going to be costly for them. Blanchard. Blanchard is Oliver Blanchard is pouring water on the claim in the House of Lords in the EU. [00:02:01][27.4]

Michael Tanner: [00:02:02] He’s the former IMF chief economist. If you don’t know what the IMF is it, imagine the fed. But for like the entire globe. So they sending to keep it locked up and tight. And for someone like this to be saying this, it’s I mean he’s the former so he’s not currently there but still. [00:02:19][17.1]

Stuart Turley: [00:02:19] But still he says the financial fiscal cost to achieve anything close to net zero. It’s he’s he’s dead on. Right. There’s no way that we can fiscally get there. The wind is and this is a quote the wind industry is admitting the ability to generate wind power has been vastly. Michael. Wait for it. Overestimated with the bursting of the wind. Really? Yeah. The industry’s messaging is. Which to crude blackmail. R.W. E’s German boss, Marx Krebs told the Financial Times. It is, of course, concerning because the UK’s climate targets cannot be achieved without offshore wind. Hey, they can’t make it anyway. I mean, offshore wind. We’ve seen an absolute bust. People are bailing out like you wouldn’t believe. [00:03:12][52.7]

Michael Tanner: [00:03:13] Yeah, projects are getting canceled left and right. I mean, the closest thing we’re going to get to to the IMF saying this is the former chief guy over there, because trust me, they’ve got an incentive over there to make sure this net zero stuff hit. So I always like to look at that. You know, this was basically, you know, there was also this interesting German owned electrical producer r w e they briefed the Financial Times that the level of government support funded through the guarantee prices, electricity are forced to pay for wind energy, so they’re forced to pay for it now, even if it costs more. [00:03:48][35.4]

Stuart Turley: [00:03:49] I found this also very interesting. The last, paragraph in here, Michael says the purpose of writing net zero into law is the anti-democratic one. Putting net zero beyond politics. So that, I thought, was very admirable of him to admit that once these things are put in there, it’s they’re trying to appease their base and either the UK or the US. Just because you’re trying to appease the base doesn’t mean it’s right. [00:04:20][31.5]

Michael Tanner: [00:04:21] Yeah, absolutely. All right, what’s next? [00:04:23][2.0]

Stuart Turley: [00:04:24] Let’s go to the next one. Here, shell, this is a good story. Shell’s LNG trading makes 2.4 billion in final. Q 2020 three quarter. That’s huge. Dude. Wow. The Shell’s LNG trading accounted for a third of Shell’s Q4 profit. That’s a lot of bucks, dude. I wonder if they got a, Christmas bonus or just a turkey. [00:04:50][26.1]

Michael Tanner: [00:04:50] Yeah. Who knows? What’s interesting about this is that, you know, this 2.4 billion number, or about a third of Shell’s Q4 profit, which. Came in at about 7.2 billion. Yeah. That’s a number that they didn’t disclose in their earnings report. So this is kind of a scoop by Reuters. Who or who got this story. So we didn’t know. We just know that they made 7.2. We covered the earnings on the show. We just know they made 7.2 billion of earnings. This knowing that a third of their profit came from LNG trading makes it again underscores the reliance. And what this article goes to point on is the reliant specifically on their profitable oil and gas trading business. It goes on to mention that really, there was this East-West arbitrage between what the East was willing to pay for and what the West was able to, to ship it over there for. And for those of you who, who, who are an economist like myself, we love a good arbitrage opportunity. He goes on to point out shell accounted for nearly 7% of the global LNG trading volumes of about 404 million metric tons in 2022. That’s according to company data. [00:06:03][72.1]

Stuart Turley: [00:06:04] I’ll tell you, this is a, the follow the next story here with Qatar is also just as important. This goes back to the Biden administration, and you can tell by the energy thread when I make this next comment. Qatar energy to further boost LNG output. The Biden administration, by putting the ban on LNG exports, is 100% placating to his base. That has nothing else to do with it. And guess who’s going to benefit Russia, qatar and the rest of the world that are producing LNG? And who’s going to get screwed? US state on this is cutter said Sunday it will further boost its LNG production from the North Field. Energy minister and chief executive of Qatar Energy side Al Colby, made the announcement in a press release. This is pretty cool. Quote. We have continued geologically in engineering studies and have drilled a number of appraisal wells in that area. I’m pleased today to announce these great efforts have been confirmed through technical tests of the appraisal wells. The extension of the North fields productive layers towards the West, which means the ability to produce significant additional quantities. This is huge. Listen to these numbers. Field estimate at 240,000,000,000,000 cubic feet, which raises the gas reserves from 1716 to more than 2000 trillion cubic feet. [00:07:40][96.4]

Michael Tanner: [00:07:41] It’s a lot of gas. [00:07:41][0.4]

Stuart Turley: [00:07:42] Man. Pull my finger, baby. Wow. [00:07:44][1.7]

Michael Tanner: [00:07:45] I mean, I think. [00:07:46][0.5]

Stuart Turley: [00:07:47] You’re camera just driving you nuts. [00:07:49][1.5]

Michael Tanner: [00:07:49] Is driving me nuts right now. Point of the matter is, though, it’s this I stop. I mean, we we hate this A.I. stuff. It’s killing me. Point of the matter is, though, guys, guitar is set to take in any country that’s able to export LNG in light of what the Biden administration has done, is looking to take advantage of what? Theoretically, if especially if Biden wins another four more years, which, you know, we can only hope not. But let’s say that happens. That makes it really that give that further enhances that arbitrage opportunity, not for companies like shell, but for companies who are really for these independent, super majors, which are these not independent super majors, these these national oil companies who now are based not in the United States and can and have now access to the entire world market without the United States as a player, because we’ve got a lot of gas here, too. [00:08:44][54.8]

Stuart Turley: [00:08:45] Oh, absolutely. But let’s see here on the, LNG it is just crazy what the world, has got going on. I’ve got it. I was pulling it up here as a little slow, but, when we sit back and take a look at the long term contracts, you know, I’ve been talking about the long term contracts over the last two years. We’re missing out on a lot of long term contracts. So the US is going to be relegated back into, fighting for the left overs, which is not where you want to be in a market leader. So. Well. [00:09:19][33.9]

Michael Tanner: [00:09:19] And not allowing the, the, the new permitting of, LNG, the United States has partly led to the reason why natural gas has tumbled here. I mean, it’s not the sole reason natural gas has been falling, but I mean, we’re sitting at $1. 58 right now, on the futures curve. I mean, that’s partly due to the fact that the long term prospect of where we’re going to take this gas is we don’t know. So it’s pretty crazy what’s going on. And LNG is going to become and is becoming, a huge profit driver for all these, these companies and countries. [00:09:52][32.8]

Stuart Turley: [00:09:53] It’s, the import, facilities. There’s 300, 280, I guess, in. Construction or on the map. It’s just not. [00:10:01][8.1]

Michael Tanner: [00:10:02] Yeah. All right, what’s next? [00:10:03][0.9]

Stuart Turley: [00:10:04] Hey, let’s go to research warns net zero policies risk plunging thousands into poverty. I didn’t even I didn’t even touch that and put that I’d even put more on there. Millions will die. I you see, something like millions will die. You know, that would be me. But new research has been published by the Institute in Community Studies. I went to the web site, and you have to go through it says, oh, here’s where the study is, but you gotta buy it. So this article is pretty interesting. Local councils and central governments were not trusted to lead sustainable changes. So members of public had no choice but to take matters into their own hands. Whenever we start mentioning the public or the leaders taking things into their own hands. I get nervous, dude. Here’s a quote from Emily Morrison, director of sustainability from the young, Young Foundation, said, our research shows there is a will, an appetite and even urgency amongst the public, including the most vulnerable, and poorest households to participate in the transition to net zero. It has to be done through climate policy. [00:11:16][72.5]

Michael Tanner: [00:11:17] Yeah, that’s an easy way to drive people to their grave. [00:11:19][2.1]

Stuart Turley: [00:11:20] It is. It’s just I want to be the place where people can come and talk about openness, of talking about physics and reality. Yeah, physics and fiscal reality matter in anyway. Millions upon millions will die. If I was Carl Sagan, I’d say billions upon billions will be dead. [00:11:41][21.1]

Michael Tanner: [00:11:42] Yeah. I mean, the problem is, when you’re to bring somebody out of poverty, you have to provide them with an extremely affordable option that’s also extremely efficient. It’s not just, yes, in a perfect world, I’d love my car to have zero emissions, but guess what? The most efficient and cost effective option has a trade off of some small amount of emission. And you know, Thomas Soul said it best. There are no good options. There are only trade offs. So what are we willing to give on one side to give the other? Are we willing to basically keep the poor poor in order to make the environment, you know, marginally better? Or do we want to raise everybody out of poverty and have a slightly worse off environment margin on the margins? Well, I’ll see what I take all day, every day. [00:12:29][46.9]

Stuart Turley: [00:12:29] As the great thing, as the great and wondrous I know, both things can be true. And, and both of these things can be true. You can. [00:12:40][10.9]

Michael Tanner: [00:12:41] Have. That’s, tissue. Schuller. Thank you. Anatomy. Today, I had. [00:12:44][3.8]

Stuart Turley: [00:12:45] A brain cramp. What? Love Tisha. And both of these things can be true if it is worked out in both sides. You can have your ecologically good energy and your your low cost. It has to be work together. [00:13:00][15.5]

Michael Tanner: [00:13:01] Absolutely. It definitely can. But there is. But we also live in a world of, of of trade offs. And so I think that’s what we have to we have to look here and you know, we may get you need to rewrite the title. You got anything else in the in the news part. It’s it’s been crazy. [00:13:18][17.0]

Stuart Turley: [00:13:19] Oh it’s just been unbelievable. We got some crazy stories coming around the corner. [00:13:24][5.0]

Michael Tanner: [00:13:25] If you’re if you’re an AT&T person, you’ve you’ve seen the craziness already. [00:13:29][3.2]

Stuart Turley: [00:13:30] You haven’t even seen nothing yet. [00:13:31][1.1]

Michael Tanner: [00:13:31] Luckily we’re sponsored by Verizon, so we’re good. [00:13:34][2.1]

Stuart Turley: [00:13:35] not AT&T that it’s. [00:13:37][2.2]

Michael Tanner: [00:13:38] It’s but before guys we’ll go ahead and jump into the oil and gas finance. But before we do that will quickly pay the bills around here. As always the news and analysis, for what it’s worth, is brought to you by the world’s greatest website, www. Energy News beat.com. The best place for all your energy and oil and gas news. We appreciate, all the great feedback we have gotten. Visit us online again energy news beat.com. Hit the description below. You can see all the links to the the stories. You can see different timestamps. You can go back and listen to what’s going on with shell and LNG, and all of the rest. You can also check out dashboard.energynewsbeat.com, our latest data news product. We got a lot of cool developments coming up with that. We’re we’re working on a really exciting, maybe we’re working on. We’ll see how long it takes me to, to to spin up a prototype. But I’m really. We’re we we’ve got some cool stuff on the horizon for the dashboard and and and a potential subscription. So, guys, hang with this there again, you can email the show questions@Energynewsbeat.com www.energynewsbeat.com. [00:14:36][58.5]

Michael Tanner: [00:14:39] But let’s shift over to the overall markets. I mean from a market standpoint we’re we’re sitting at all time highs mainly off the back of individual earnings. which dropped on Thursday. I you know it’s kind of crazy how the entire back of the, the United States in the world economy is, is is now reliant on individual earnings. But you know they go ahead and. And then smash through their projected revenues, mainly off the back of, of all the GPU consumption, from the AI revolution. So, absolutely incredible there that’s really driven the S&P 500 to where it stands now at about 50, 5088 there at all time highs. Nasdaq trading again around all time highs 17,937. Looking to break that 18,000. We did see the two year yield in the and the ten year yield fall 4.6 for the two and 4.2 for the ten year. We’ve also see the dollar index stay fairly stable. As in futures both on the S&P and Nasdaq have fared have fared fairly decent this weekend. We did see crude oil take a pretty big tumble on Tuesday or on, Friday. We we started the day at above $78 and currently now trading, 7657. We got a, an hour, a couple of hours before the market opens here. So we’ll see, how things look to open. It looks to be a slight gap down at 76, 49, based upon where things are trading. We did see Brant Oil 83, 66. That was actually up a little bit so that that east west arbitrage, not just in the LNG markets, but specifically, what’s going on with these crude prices? Seems to be seems to be widening a bit. We saw natural gas prices trading down, closing the day at about $1.58. Not good there. Mainly again off as we continue to get warmer now things are you know, unfortunately during winter when we should have saw higher gas prices, we saw gas prices continue to fall. That seasonality of when we go through winter, we consume more natural gas. When we when we when we go into the summer, we don’t we actually start injecting natural gas. It’s going to be interesting to see kind of the long term prospects of where the forward curve for natural gas goes, because right now you still have futures at about three, 350 a year out, which is making some of these projects actually economical that I think are getting drilled in the natural gas pitch, which which I find hilarious because they’re $1.50 take out, you know, 30%, you know, take out $0.30 for a net bag and you’re talking you’re basically getting a buck per MCF. That’s not good. That’s not going to pay the bills anywhere. And I think it, it, it’s going to lend itself here when we Chad southwestern we did see U.S rig count drop or rise. It actually was up five week over week. We had, current count, 260, 226 626. Excuse me. That’s up five from the week over week 231 in Canada, that’s down three internationally. We’re up, about ten week over week. 965 majority of that. Excuse me. Here, let me pull it up here. The majority of that, rig count increase does come from oil rigs. We actually saw a drop of one natural gas rig. So, we saw one offshore rig come up. So people are wising up, at least in the short term, because you got to remember the what? Why is it hard? Why are natural gas projects hard to to make profitable right now? Well, because you make on your early float time, especially on, say, like a Haynesville well or an eagle or, you know, one of these, you know, in the Marcellus, your early time production is a lot stronger than your later time production. So who cares what the curve is a year from now. If you’re drilling an IP in the thing this week, well, you’re subjugating yourself to $1.58 at the wellhead. And you know, when you work that backwards to net, it’s probably a buck ration all the other things that go into it. So, you know, two weeks ago when we saw gas rigs spike by four, I just it’s why it didn’t make much sense to me and why now you’re seeing they, you know, minus one on the gas rig we saw last week, Chesapeake saying, hey, we’re going to run a rig, but we’re not going to complete them because we’re going to wait and basically use it like a B-B gun. And right when gas prices get to where we want, boom, we’ll go ahead and complete it and turn it in line. It’s the same thing that we’re going to talk about with southwestern. Now obviously that merger becomes up, but it’s these, these natural gas, guys have a little bit of sense. I would you should start cutting rigs a few weeks ago. But before we, I think there’s a couple things. We’ve got a few earnings to cover, but I want to talk about the court energy and plus M&A deals so that that happened on Thursday. Chord energy and enerplus both Williston Basin and Bock and shale primary targets ENP companies. They’re going to go ahead and combine in an $11 billion transaction. We could read a bunch of the top lines here, but mainly it’s a it’s an 11 billion stock and cash transaction it represents. And of that split out. So it’s an $11 billion, cash in stock transaction. It’s about 90% stock. So they didn’t trust me. They didn’t go. They didn’t. They’re not putting much cash down and about 10% cash. Upon completion of the transaction, it’s going to be about a 67, 33% split via cord and enter. Plus, for those of you who don’t remember, cord energy was the combination of two premier companies. I mean two premier companies, Oasis and Whiting, both which have been had their bankruptcy issues. So I mean it. Just I just think high tier merger and now going into another top tier merger, you know I’m just I’m I’m mostly being funny. I was never kind of waiting for Oasis. Trust me. [00:20:11][331.9]

Stuart Turley: [00:20:11] This look at the time I gotta go. [00:20:12][1.3]

Michael Tanner: [00:20:13] You got go. So, you know, we got top tier M&A action going on here. I’m mostly making a joke my over. I mean, here in some of the top line numbers, this is a primary operator. They primarily operate in North Dakota, in the Williston Basin. They’ve got about 1.3 net acres. And that 98% of that is split there in the Williston Basin on their Q4. Oil production on a pro forma basis is going to be about 287 million, bop or b o. [00:20:43][29.7]

Stuart Turley: [00:20:43] E per. [00:20:44][0.5]

Michael Tanner: [00:20:44] Day. Remember, that’s barrel of oil equivalent, almost 90% of this Williston. But this is what I found interesting. They’re only a 56% oil versus natural gas split, meaning that 287,000 per day is pretty weighted towards natural gas. No oil production is actually much, much lower. You know, the street didn’t necessarily like this too much. I saw one commentary that this was the the perfect merger to happen five years ago. And I agree, I think. Too late to the party, I think, to be honest with you. I mean, I think I think unfortunately both of these companies, you know, I mean, they’ve already you know, the first line is, is the company expects to benefit from administrative sin and operating synergies. I mean, they’re just they’re basically telling you you’re getting laid off without telling you. I mean, it’s b administrative synergies. Oh, if you’re working in office in Inter plus I’d be shaking in your boots. I’d be looking where else you need to go because you’re on the hook. [00:21:43][58.7]

Stuart Turley: [00:21:43] So I’m I’m home early for dinner. [00:21:45][1.8]

Michael Tanner: [00:21:46] You’re going to be okay, honey. I’m home. [00:21:49][3.0]

Stuart Turley: [00:21:50] Yeah. [00:21:50][0.0]

Michael Tanner: [00:21:51] More like. Honey. We got to move to Houston. Sorry. We’ve been living because Airbus is based in Denver. And, I mean, you’re going to have to go from Denver. Imagine having to move from Denver to Midland for a job. That sucks. But, it may be what has to happen because Denver as an oil and gas town is really dying. And Texas in places like Midland, Dallas, Houston, they’re growing, if only because that’s where companies that’s eventually all companies could be based out of Texas. Something. You’re leaving an office in North Dakota, and you’ll have your headquarters in Houston. And and there ain’t going to be much going on, specifically. And then you’re gonna have one Denver operator. So everyone’s going to work for the mega corporation and ends up taking over the Wattenberg there. So, you know, again, if you’re a core shareholder, I think this is an okay move. This all comes back to how can you acquire incremental production. We’re about to talk about EOG. EOG reported their earnings on Thursday. And I think this is a good time. And I got to do my best to keep the threads like stew has it okay. So EOG drops their earnings on on Friday. Or on Thursday night they go ahead and and all the metrics seem fairly good. I mean they only dropped about you know, fiscal year 2022 was about 25.7 million in total or billion in total revenue for fiscal year 2023, which we just ended. Quarter four was only down to 24.1. And that’s mainly due to a 10% drop of realized, not realized pricing. So I mean, again, you’re revenue is focused mainly on what’s happening top line with oil prices. Okay. What’s interesting is this though the street hated what what what they talked about. They were down and they’re down over the two days. Down 3.9 percentage points. Much, much, much higher than other producers. For example, for, you know, in that same time period another pair of them or a smaller than might be matador, they were actually flat through this time period. So what what’s interesting. And they don’t come out and say this, they bury this deep. You have to scroll a little bit down. Okay, here we go. Announced $6.2 billion capital plan to grow oil production. 3%. What? Wait a second here. You’re telling me you need $6.2 billion to grow oil production? 3%. Absolutely insane. You want to know what’s in some fields? [00:24:07][135.8]

Stuart Turley: [00:24:08] I’ll sell them right now. Today? [00:24:09][1.4]

Michael Tanner: [00:24:10] Yeah. Well, also, look at this. You got to scroll down a little farther to get an idea of. Okay, well, talk to me a little bit about what were your growth was quarter over quarter okay. Your growth quarter over quarter was 3%. And you spent $1.2 billion to do that. [00:24:26][16.4]

Stuart Turley: [00:24:27] What, $1.2 billion. [00:24:29][1.8]

Michael Tanner: [00:24:30] To increase a 3% oil production? That tells you all you need to know why companies like corded and or plus or combining, even if it’s a suboptimal merger, even if it should have happened five years ago and and you shouldn’t have had Whiting in it should have just been Oasis and Inter plus. Okay. But we can we can quantum about that later. They’re doing this because the incremental increase in oil production from drilling your own stuff isn’t there. It’s just not there. The only way to acquire the. Barrel is go out in the open market to get. If EOG, widely considered one of the smartest and most technically savvy independent oil and gas companies out there, if they’re telling you it’s going to take them $1.2 billion to grow oil production, 3%. What’s that telling you about these new wells that they’re drilling? They are not as productive as the old ones. They’re drilling because they’re having to spend more money year over year. Now they’re doing it in a capital efficient manner. But the street doesn’t like that. It’s absolutely insane. It also goes to show when Vital Energy reports, fourth quarter earnings. All indicators. Net income is good. Adjusted net income is good. Cash flow looks fine. EBITDA is good. They put down in here. And this is our guy of the week here. Organically added 185 new oil weighted locations their stock price drop. So what does that mean. You spend all this money to organically add 185 new locations. I don’t know what that means. I don’t know what what organically adds me. Just do some sticks on the map and we’re like, oh great, there they are. The street thinks so little of that that your stock drop. [00:26:07][97.0]

Stuart Turley: [00:26:07] I don’t understand organically. And unless it’s like not technically sure. [00:26:12][4.3]

Michael Tanner: [00:26:12] So they it’s you know they did it in the sustainable. [00:26:14][2.0]

Stuart Turley: [00:26:15] Not taking a shower in Covid. [00:26:16][1.4]

Michael Tanner: [00:26:17] And I mean organically added would it mean you have acreage. You maybe you drilled the test wells. Yeah. It had some unexplored acreage that maybe had some, some, some, some three PE reserves associated to which are, you know, highly, highly, you know, undeveloped, you know, unproven, all that jazz. You go drill a test well and maybe you get some good results. You drill a, you know, $800,000, 5000 foot vertical well and you get 45, 50 barrels a day. It stays like that for three months. Oh, now am I got something here. And then you do a couple other things. And based upon that development, you say, oh, well, now we believe because we’ve got, you know, three vertical wells, they’re doing acts. We can, you know, we know what the we know the, the the what the sand looks like. We feel like we’ve got good well control. We understand what the formation is doing. We can accurately assign a multiplier on a per thousand foot basis. So if we drill a 5000 foot lateral we have a pretty good idea of what that IP might be. You know, I mean, the old adage some some people would say, you, you know, you drill a vertical one, you do a two stage frack, you get 50 barrels a day. Well, if you did a 26 stage frack, start doing the math. All of a sudden you’re now at 1000 barrels a day. Because think about it, you got 26 stages. Divide that by two because you did a two stage frack. So that’s 14. Take 50 times 14. You’re at 2000 barrels a day. Now, I’m not saying any wells going to do that day, but that’s how some of that thinking in these undeveloped fields look like. So that’s probably what they’re talking about when they mean they organically added 185 new oil weighted locations. The problem is the street thinks so little of it. They asked their stock price fell. So again, why are we seeing all this M&A activity real quick in my opinion. And I think this is well documented. I’m not saying anything that’s like oh my goodness, what a genius. Still, I am a genius. [00:28:01][103.8]

Stuart Turley: [00:28:01] But genius. [00:28:01][0.3]

Michael Tanner: [00:28:02] Genius, genius. It’s because the incremental barrel is much easier bought than it is developed. And you’re going to get more, you’re going to get a lot more value from the street. And when I mean the street, I mean the capital markets than you are. If you go to try to develop locations, it’s just it’s clear. It’s what it’s clear with what’s happening. And you’re going to, you know, there’s a few more, there’s only a few more of these deals to happen before it’s going to become a real game of the haves and the have nots. Yep. No, it’s it’s a I think we learned a lot throughout this throughout this earnings season. Again, we also did see southwestern, drop their earnings. I mean, just to give you guys an idea of what low gas prices could do for a company in fourth quarter 2023, a net loss of $658 million, whereas the year prior they had a $2.9 billion gain. So, you know, pretty pretty incredible what lower gasoline natural gas prices were. Do you know, they’re going to obviously make that combination with Chesapeake. And we kind of, you know, we saw or we saw last week what Chesapeake is going to do. They’re basically going to keep their they’re going to lower their rigs running, and they’re going to completely drop their frack count so that they can have what they called t ills new phrase that people like to throw around burn in line, which basically means everything is set to just frack the well, drill out the plugs, and boom, now we’re now we’re tapping into the sales line. So, you know, on a go forward basis, I think we’re going to see them specifically this new merger, this this new company, whatever they call themselves. I think it’s going to be I think they’re going to keep the Chesapeake name, but I’m not sure what they’re going to do with the name. You have to keep the Chesapeake Bay. You can’t shrug. [00:29:36][93.8]

Stuart Turley: [00:29:36] You got some brand name recognition. [00:29:38][1.2]

Michael Tanner: [00:29:38] Absolutely. Here. I mean, coming from the coming from the CEO guy himself. But no, it’ll be interesting to see. See how that all plays out. That’s all I’ve got. Stewie, you got anything else? [00:29:48][9.9]

Stuart Turley: [00:29:49] Oh, no. It just get ready for a fun week. We’re going to have a lot of good things coming around the corner. [00:29:54][4.9]

Michael Tanner: [00:29:55] Yep, we got a deal. Spotlight dropping specifically on. The Diamondback endeavor. Me and John Farrell over at, well, database. That’ll drop probably Tuesday. And then we’re going to go ahead and try to get one recorded specifically for the cord energy. And an hour plus one. So stay up to speed on that. Stu’s dropped a bunch of, conversations, this weekend with kind of cleaning out the, cleaning out the old inventory. What else is coming up for us? [00:30:21][26.8]

Stuart Turley: [00:30:22] We just have a bunch, running a little bit behind here, but we got doomberg  Me, David Blackmon, and Doomberg is about to come out. Yeah, so that was another. And that’ll be my second podcast with Bloomberg. I’ll doom burg love me some number and just released a few of them and, we got a lot more great feedback. [00:30:43][21.1]

Michael Tanner: [00:30:44] By coming up, so. All right, guys, with that, we’ll let you get out of here. Start your Monday. Stay strong. Guys, you only got a few meetings and then you will get out of here and it will be Tuesday. Thanks for checking us out. World’s greatest podcast energynewsbeat.com. We’ll see you tomorrow. [00:30:44][0.0][1784.6]

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