IEVM is my only OTC stock, and I see a completely different way to trade. Few traders are interested in this kind of stock. I have owned this IEVM for 18 months. I own it because I believe Excelyte has little competition. The competition would be Chorine, but I have never heard that Chlorine is used with the drilling mud. So Chlorine is used to decontaminate the mud returns once on top. None the less, although Chlorine does decontaminate the H2S, one cannot dispose of Chlorine treated mud return. Chlorine is not an environmentally friendly chemical. The produced crude must still be decontaminated further.
By contrast, Excelyte is used with the drilling fluids including mud and attack H2S in the hole. So the mud returned is decontaminated of sort. During production, I would think that Excelyte is used like water when wax accumulates on the wall of the production pipe. As the crude goes up the production pipe, the temperature change separates the wax which accumulates on the wall. Ultimately the wax will plug the production pipe. Keeping the pipe wall lube up with water does not allow the wax to stick to the wall. To accomplish this, you pump water in the annulus so that at the bottom of the production pipe the water is suck up with the crude. I believe this is the way Excelyte is used during the drilling and the production cycles. The concentration level of Excelyte varies with the H2S level.
This means that the crude is decontaminated by the time it reaches the top. Same with the mud return. After 30 days Excelyte can no longer be detected, therefore are environmentally friendly for dumping.
I use the free EIA.gov. It has been good and everyone uses it. I hope this web site will not block it, “eia” is not Copy Right, but one never knows. I move the data, every day, on my spread sheet for history purposes, by now I have several years back up data.
Going back to ALDW, it has been extremely volatile, my position has moved from early session, a minus $1500 to a closing session of plus $1250. You have to have more than nerves, may be out of your mine, Ha-Ha!!?? I have had luck with ALDW in the last 2 years. I cannot say the same with NTI and CVRR.
I expect the ALDW distribution to be lower by 12% ($0.92) for Q3, because the crack was lower. Q4 distribution will, probably, much lower, again the crack is down more.
We are getting closer to the conference call, volatility will increase? Got to have nerves!
I have traveled through ALDW market. It is rural by enlarge, ranchers use diesel more than gasoline. Where the gasoline produced by ALDW does go: Lubbock may be Austin, and El Paso, may be Albuquerque, although I have not heard of it.
During the presentation of Q2 the big news was that ALDW was present in Phoenix Arizona. This is a big deal because Phoenix was getting its gasoline and diesel from California the closest production. You follow the wholesale gasoline prices in LA is $1.62 per gallon, versus GOM wholesale of $1.21 per gallon or $0.41 per gallon. The transport from California or Texas is the same. This means that ALDW has little or no competition in Arizona. I am sure others understand the California situation and are actively trying to enter the Phoenix and Tucson markets. New Mexico comes to mine, but the Crack Spread is probably higher, although the transportation is similar.
ALDW Big Spring is well located and can process WTI or WTS; it can be considered a leverage of sort. I am waiting with impatience the new ALDW conference call.
So CITI has downgraded ALDW and other refiners. The down grade is for the next quarter, Q4. The Q3 financial is about to be sent to the FED. So yesterday huge swing was for what?? I still believe the Q3 distribution will be $0.90 to $1.00. Nothing wrong with this.
I guess the shorts were out, sound that the shorts will be out again next week just before the conference call?? In the meantime, patience is the game plan??
The Crack Spread is closed 30 days before the Xdate. It takes 30 days to get, analyse and prepare the K8 filling which has to be approved by the BD. The crack spread for Q3 was closed October 2. I believe the Q3 crack spread was $14.24 give or take, I was traveling and missed several days data.
The Q4 crack spread so far is $7.74. Q4 is going to be a challenge.
I did not mean to question your intentions. None the less research and understanding what you invest in is the way to go.
I read on this web board people that stock, MLP and US Royal Trust, are all the same, in other word they have no idea how these financials instruments work. But they criticize the distribution etc..
If IEVM only has 250 shareholders, my guess few are speculators. I would guess if IEVM starts to move up, speculators will show up and volatility will show up as well. Than unfortunately volatility will define the value of IEVM, shorts will be on the lookout.
Investing in such a company is far fetch from speculation. My decision was 100% based on my professional experience. Excelyte has been approved by the government for hospital use. Unless you have experience working offshore wildcatting it is hard to understand the safety concerns. It goes as far has requiring no more than a 2 days old beard, so the gas mask can give a good seal. The alarm was set up for a 5 PPM H2S, that small of an amount; the problem is that beyond that 5 PPM you lose your sense of smell.
The hospital use of Excelyte has become questionable from a marketing point of view. There are alternative that, although expensive, are superior, a side from chlorine.
Cont from above:
these chemical providers would make a match.
Excelyte down side is the life spends, therefore has to be processed locally. This means a decentralized cost in many localities.
I still believe Excelyte is a winner!
A year ago, last April, I read an article about IEVM on Rigzone. I spent 40 years in the O&G and more than 20 in the drilling side. What is appealing about IEVM is the control of H2S, an absolute constant safety problem. While drilling there is very little time to react to H2S. I liked what I read and bought what I call it my poker hand.
IEVM has competition; Chlorine is the first, really the only. Another in Canada which does not appears to be good. The Chlorine is the most used. 1 ton of Chlorine is worst $10 per metric ton.
What is Excelyte? I do not have knowledge of the process, but IEVM published some details. 1. Water goes through an electrolytic process. 2. The presence of Excelyte is undetectable passed 30 days. Further, Excelyte cannot be patented. I believe that Excelyte is processed water that alters the polarity of this water. My guess is that Excelyte is water with a negative polarity. This kind of water is widely used in the semi-conductor industry to control the polarity of the chips. It is also used as cooling water for the Stanford University accelerator in Palo Alto. It does make sense that negative water kills and reject germs biomass.
1 metric ton of water is 1 meter cube. From IEVM published data, it takes 25 000 USG to 40 000 USG of Excelyte for 5 000 000 to 8 000 000 USG of water. Translating in metric for every 19 000 Mton of water 95 Mton of Excelyte is required minimum. This is a 263 to 1 dilution; the chlorine would be nonexistent.
The down side, which is really a plus, is that after 30 days the mass treated with Excelyte can be disposed of without, or very little, trace of pollutant. I would guess aside from the drilling mud, the heavies, sand, silt and water, show no longer a trace of pollutant, sizable savings.
The mud suppliers are subcontractors in the drilling technology, usually the mud subcontractor comes with a mud engineer. His job is to mix the right chemicals to meet the geological requirements. Should IEVM want to sell;
I am afraid that ALDW Big Spring is not using LLS. LLS do not have pipelines to Big Spring. ALDW uses WTI from Midland and Cushing OK. ALDW can use WTS as well from Midland.
The discount is caused by the lack of storage on the GOM, which has reached its max storage. The contango in Cushing has filled the storage, so storage is limited.
GOM refineries are processing all they can, so regardless of the available pipeline from Midland to Houston, Houston cannot use all the production. We cannot forget that Eagle Fort and Permian WTI is very light, another problem for the GOM refineries, not so at Big Spring.
ALDW is well placed to get very nice discount for WTI or WTS.
Pecos Texas 79772 smack in the middle of the Permian basin. Kind of half way between Odessa and El Paso. This new Excelyte production station 180K Gallon per month is a good start. It take 25K to 40K of Excelyte per well to neutralize H2S. 25 new customers mean this facility has 3.5 months of Excelyte production minimum. That is a good start; I would expect the facility to be very busy very quickly. I would expect, as well, that Excelyte should find several hundred wells to service before year end.
The proper way to describe the Unit holder asset is not as shown. The total number of units sold at the IPO represent the total volume on oil, gas and NGL in the reservoir. There were 18,000,000 unit sold at the IPO. The daily production of all the wells is sold every 90 days. The distribution is the gross sales minus any expenses, such as, taxes, management fees, maintenance such as work over etc.
What is left is divided by the number of units, and is distributed to the units holders.
To calculate your distribution multiply the declared distribution by the number of units you own.
Over time the volume produced will diminish, therefore the distribution will diminish as well. Usually the US Royal Trust as a declared life span and/or a production volume limit. The total number of Quarters WHZ will last was 39 .63, or December 2021. All this was set up when crude was $100. Today at $50 the cost of managing WTZ is severely under challenges, such is life.
The close out date for the quarter K8 report is 30 days before the Xdate. It does take time to prepare the report and have the approval of the BOD.
We have 3 open days before the close out date or 13 October. So far this 3Q the distribution should be $1.00 plus/minus!!!
I would think the shutdown will affect this quarter only. The shut down is for 1 week or through September 27 Max.
I had no problem buying IEVM. I get a notice saying the down side of buying, but the order goes through. My broker is a reputable outfit, but I make my own decision and buy or sell right off the net.
This $.91 is so far this Q3. Again I was traveling and missed several days crack numbers, I average those missing numbers.
It will be interesting to find out how much more ALDW penetrated the Phoenix market? The Big Spring refinery is competitive with the West Coast refineries.
Many believe that the Quarter ends on the conference call. Not so, quarter ends 30 days, give or take a few days, from the xdate. It does take time to calculate and prepare the K8 report. So far this quarter III my 3,2,1 crack is $15.70. I have been traveling and my calc is missing several days cracks. I average the missing days. This translate to a $.91 distribution. Still acceptable as compared with others MLPs.
Having worked in the O&G drilling business, H2S is an ongoing problem which has large protection cost. IEVM potential is substantial, but the O&G crash we are seeing is the reason IEVM is not taking off.
I strongly believe that once the H2S protection IEVM provide migrate throughout the O&G industry Excelyte will take off. Who can be the potential competition? The mud makers are providing all the ingredients that control the drilling efficiency, except the drilling bits. There are 2 ingredients that are used in bulk, depending on the geology to be drilled or the result anticipated, water or diesel. Today the fracking drilling technology LPG or LNG are starting to be used, this is new.
The mud ingredients are purchased in bags. Excelyte is processed locally and shipped to the drilling sites. Mud ingredients makers are not in the locally manufacturing business. This has to do with the effective life of Excelyte. IEVM advertises that after 30 days, Excelyte can no longer be detected. I believe this is the deterrent for large companies to compete with IEVM. The mud returned is processed and the sand and silt are removed and have to be disposed of. This way the density and viscosity can be controlled. This is a major advantage Excelyte has, a side from the drilling mud itself, in the decontamination and disposal of drilling returns.
I have little dough that Excelyte will succeed, the question is when. It is unlikely that a large contractor like Baker Hughes or Schlumberger will enter or buy out IEVM. It would require a large foot print in many drilling areas. They provide a service with no or little manufacturing. If equipment is required to provide the service, it is purchased from accredited subcontractor.
Can Excelyte become an accredited subcontractor to a mud supplier, certainly a possibility?
You have to know what you buy, obviously you don't. US trust, MLP, stock, ETF etc.. are very different financial instruments. Once you lose some and you take the time to read and understand, you will learn, moron??? Ha! Ha!
First NTI is not a stock, it is a unit because NTI is not a corporation or a company. NTI is a MLP, when you buy a unit, you own a portion of what NTI produces and sale. This is why the "Distribution" is variable. If the refinery has a shut down of any kind that may reduce the production, the volume of sales will be affected, so will be your distribution. So readjust your understanding of MLP versus Equities.
NTI market is in the upper Minnesota, Baken crude oil competition is the R&R. What I mean is the delivered price of Baken crude is higher than Brent on the East Cost. The Baken still is competitive in the upper West Coast. This is good for NTI, the discount should be good. The Baken producers have to use pipeline to the GOM to compete, but throughput is still not quiet enough.