Diamondback Energy Beats Earnings Expectations, Raises Production Guidance

Texas independent oil and natural gas company Diamondback Energy reported better than expected third quarter earnings after the market close Monday. FANG reported net income of $915 million, on a per-share basis of $5.07 for the quarter. Earnings, adjusted for non-recurring costs, were $5.49 per share beating Wall Street expectations of $4.90 per share. The company posted revenue of $2.34 billion also topping forecasts of $2.18 billion. Diamondback operates exclusively in the Permian basin. Diamondback Energy Inc (NASDAQ): $FANG Reported … Continue reading “Diamondback Energy Beats Earnings Expectations, Raises Production Guidance”

Texas Manufacturing Sees Lower Production with Sharp Jump in Wages – Dallas Fed

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged up to negative 17.2 in August from -20 in July, still deep in negative territory. The new orders index has now been in negative territory for over a year at -15.8 from -18.1. The production index, a key measure of state manufacturing conditions, fell six points to -11.2—its lowest level since May 2020. A telling comment from transportation equipment manufacturing, “Vendor price increases have slowed … Continue reading “Texas Manufacturing Sees Lower Production with Sharp Jump in Wages – Dallas Fed”

Texas Electricity Prices Surge Over 800% with Power Usage at All Time High

They say everything is bigger in Texas, this weekend you can add power usage to that list with Southeast Texas is locked into a strong high-pressure system. Electric Reliability Council of Texas (Ercot), the grid operator for the state said that electricity prices for the power grid rose to over $2,500 a megawatt-hour for Sunday evening. This is a gain of 800% from Saturday’s high of around $275 and will strain the grid. Ercot said that power usage on Sunday … Continue reading “Texas Electricity Prices Surge Over 800% with Power Usage at All Time High”

Diamondback Energy Raises Guidance with Increased Production and Narrowing Unit Costs

Texas independent oil and natural gas company Diamondback Energy reported lower than expected second quarter earnings after the market close Monday. However, the Permian giant raised guidance for the full year. Second quarter net income fell 60% Y/Y to $556M, or $3.05/share, from $1.42B, or $7.93/share, in the year-earlier quarter. FANG said Q2 production averaged 449.9K boe/day, while its total average unhedged realized prices were $46.31/boe, well below last year’s $79.49/boe. Diamondback operates exclusively in the Permian basin. Diamondback Energy … Continue reading “Diamondback Energy Raises Guidance with Increased Production and Narrowing Unit Costs”

EIA Revised US Crude Oil Production Higher to 12.615 MBpd in April

The EIA revised crude oil production higher in April using monthly data at 12.615m b/d, and NGLs at 6.373m b/d. Total US oil liquids jumped to a fresh all-time high of 18.988m b/d (vs an estimate of 18.138m b/d based on weekly data). Texas is the U.S.’s top producer with 42.79% of US crude oil production. American total oil production surged to a fresh all-time high in April, includes crude oil, condensates and natural gas liquids. US Crude Oil by … Continue reading “EIA Revised US Crude Oil Production Higher to 12.615 MBpd in April”

Texas Manufacturing Mood Worsens with Declining Orders and Outlook – Dallas Fed

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 29.1 in April from -23.4 prior to the lowest reading since July. The new orders index has now been in negative territory for a year and pushed down further from -9.6 to -16.1. The growth rate of orders index also fell, declining 10 points to -20.7, its lowest value since mid-2020. Perceptions of broader business conditions continued to worsen in May. The … Continue reading “Texas Manufacturing Mood Worsens with Declining Orders and Outlook – Dallas Fed”

Dallas Fed Reports Texas Manufacturing Activity Contraction Deepens in April

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 23.4 in April from -15.7 prior to the lowest reading since July. There are bright spots however despite the company outlook worsening to -15.6 vs -13.3 prior. The new orders index did improve to -9.6 vs -14.3 prior, still it was the 11th month in a row negative. The production index, a key measure of state manufacturing conditions stayed position though down … Continue reading “Dallas Fed Reports Texas Manufacturing Activity Contraction Deepens in April”

Texas Manufacturing Activity Expanded Modestly as Business Conditions Perceptions Worsen in March

The Dallas Fed manufacturing survey manufacturing index, a key measure of state manufacturing conditions, edged down to negative 15.7 in March, weaker than the -13.5 in February, despite a modest increase in output. The new orders index slid to -14.3 vs -13.2 prior, the 10th month in a row negative. The production index, a key measure of state manufacturing conditions, rose to +2.5 from -2.8 in February. Capacity utilization rose +2.3 vs. -4.1 prior. Perceptions of broader business conditions continued … Continue reading “Texas Manufacturing Activity Expanded Modestly as Business Conditions Perceptions Worsen in March”

Energy Transfer Expands Permian Network with $1.45 Billion Centurion Pipeline Deal

Dallas based Energy Transfer (ET) said Monday it agreed to acquire the owner and operator of the Centurion Pipeline system in the Permian Basin from an affiliate of EnCap Flatrock Midstream. The deal is for cash and stock valued at $1.45B ($900M cash and ~44.5M newly issued Energy Transfer (ET) common units.) Energy Transfer (ET) said the Centurion assets, “located across some of the most active areas of the Permian Basin, provide significant gathering volumes from key producers while also … Continue reading “Energy Transfer Expands Permian Network with $1.45 Billion Centurion Pipeline Deal”

EIA Reports US Crude Oil Production Fell 2.2% in December to 12.101MBpd

The EIA reported that US crude oil production fell 276Kbpd In December to 12.101Mbpd. Production was impacted by extreme winter storms in December. The EIA revised oil production in November up by 2Kbpd to 12.377M Bpd. Texas is the U.S.’s top producer with 42.5% of US crude oil production. US Crude Oil by State Texas produces 42.5% of US crude oil, 14.74% comes from offshore in the Gulf of Mexico, 14.6% from New Mexico and 7.8% from North Dakota. Source: … Continue reading “EIA Reports US Crude Oil Production Fell 2.2% in December to 12.101MBpd”