10:54 ET BEXP Announces High Rate Bakken Completions
Brigham Exploration (BEXP 16.88 -0.06) announced the completion of the Ross-Alger 6-7 #1H, the Owan 29-32 #1H and the Abe 30-31 #1H at early 24 hour peak flow back rates of 3,070, 2,302 and 1,847 barrels of oil equivalent, respectively.
To date, Brigham has successfully completed 26 consecutive long lateral, high frac stage wells at an average early 24 hour peak flow back rate of 2,648 barrels of oil equivalent. Co is updating its second quarter 2010 production guidance and is currently estimating that production will average between 7,000 and 7,500 barrels of oil equivalent per day.
ENB To Undertake $400 Mln Pipeline Expansion
Enbridge (ENB 47.70 +0.33) announced that it has entered into shipper commitments totaling 229,000 barrels per day of capacity on the Waupisoo Pipeline, part of Enbridge's Regional Oil Sands System.
Enbridge will undertake an approximately $400 million expansion of the Waupisoo Pipeline to its maximum capacity in order to accommodate these commitments, which include the additional volumes announced in February 2010.
Income and Spending Data Portend Good Things
The May personal income and spending report contained some encouraging markers for future spending activity. Specifically, real disposable income increased 0.5% -- the third straight monthly increase -- while the personal savings rate ticked up to 4.0% versus 3.8% in April and 3.3% in March.
Forget that the 0.4% increase in personal income for May came up shy of the +0.5% consensus estimate. That ended up being a wash since personal income for April was revised higher by 0.1 to +0.5%.
This was a good report. Private wage and salary disbursements increased 0.4%, with gains in both goods-producing and services-producing industries' payrolls; meanwhile, personal current transfer receipts jumped $2.7 bln, or 0.1%, to $2.248 tln, versus a $3.3 bln, or 0.2%, increase in April.
Inflation remains subdued. Core PCE rose 0.2%. That was slightly higher than the 0.1% increase expected by economists and it pushed the year-over-year rate up from 1.2% to 1.3%. Frankly, a little bit of inflation isn't such a bad thing given the disinflation trend and deflationary banter that has been heard of late.
The 1.3% increase in core PCE is slightly higher than the Fed's projection of 0.9% to 1.2% for 2010, but within the 1.0% to 1.5% range forecasted for 2011. This report will not -- or should not -- stir any concerns about the Fed raising the fed funds rate sooner rather than later.
Certara Confirms Best and Final Offer of $5.75/Share for SMMX
Certara today declared its irrevocable offer of $5.75/share in cash to acquire Symyx Technologies (SMMX 5.40 -0.18) as its best and final offer.
As outlined in the June 28 proposal, the offer: is irrevocable, effective immediately; empowers the Symyx Board of Directors to accept the offer and legally bind Certara once the Accelrys merger has been terminated; is contained in a signed merger agreement; and is guaranteed by Vector Capital.
AFL Reaffirms Guidance
AFLAC (AFL 44.62 +1.03) announced that it has sold its holdings of Greek sovereign debt and reduced its investment exposure to perpetual, or so-called "hybrid," securities through two separate transactions.
The company sold its entire holdings of Greek sovereign debt, which totaled $270 million of par value at March 31, 2010. As a result of the sale, it will incur a realized after-tax investment loss of ~$67 million on a GAAP basis in its Q2 financial statements.
The company expects these two transactions to result in a realized after-tax gain of ~$80 million on a GAAP basis in Q2.
The company said, "we continue to believe our objectives of increasing operating earnings per diluted share 9% to 12% in 2010 and 8% to 12% in 2011, before the impact of currency translation, are achievable."
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