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Federal Court OKs Chevron Post-Production Deductions in PA

Once again the infamous 2010 Pennsylvania Supreme Court case, Kilmer v. Elexco, rears its ugly head. In a decision filed by the U.S. District Court in Western PA, the judges invoke Kilmer v. Elexco as the excuse to grant Chevron the right to deduct a cumulative $54,834 from royalty payments to a Greene County, PA landowner (out of $266,196) even though the original lease says royalties should be paid “at the wellhead” price.
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Which Companies Sold the Most Natural Gas in the U.S. in 2020?

Who are the biggest natural gas sellers in the U.S.? You might be surprised to learn that the biggest *sellers* are not necessarily the biggest *producers* of natural gas. Oh, you might recognize some of the names of the top sellers (BP, Shell, ConocoPhillips). But others might be more of a mystery (Macquarie, Tenaska, Sequent, and J. Aron & Co.). Would it surprise you to learn that BP (i.e. British Petroleum) is the #1 seller of natural gas in the U.S. and has been for many years?
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Big Oil, API Sells Out to Radical Left, Supports Carbon Tax

Make no mistake–Big Oil companies like Exxon, Chevron, and Shell are not friends of the shale industry. Indeed, these so-called supermajors despise smaller competitors called independents. Which explains why these three companies, along with seven other major oil and gas companies, acted like sycophants in a meeting yesterday, obsequiously bowing before dementia Joe’s attack dog Gina McCarthy in pledging their undying support of a carbon tax that they foolishly believe won’t somehow end up shutting down their own companies. For big, important people, the CEOs of these companies sure can be stupid.
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Northern O&G Buys 64K Acres of RIL’s Non-Op M-U Assets for $250M

Northern Oil and Gas, Inc., a company that invests in non-operated oil and gas assets (they let others do the drilling), announced yesterday it has purchased 64,000 net acres producing ~120 MMcfe/d (million cubic feet equivalent per day) in the Marcellus/Utica from Reliance Industries Limited (RIL). The cash purchase price is $250 million.
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EQT’s Toby Rice Discusses Chevron Deal, Ponders Pipe Assets

Yesterday Pittsburgh Business Times‘ ace reporter Paul Gough got EQT CEO Toby Rice to open up and talk about the company’s recently announced deal to buy Chevron’s considerable Marcellus/Utica assets (see EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock). Rice said the Chevron deal fits like a glove and investors will love it. He offered some insight into the bidding process and his thoughts on the pipeline assets that are part of the deal.
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After Floating $350M in New Stock, EQT Floats $350M in New Bonds

Last week EQT Corporation announced a deal to buy Chevron’s considerable Marcellus/Utica assets (land and wells) for the lowball price of $735 million (see EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock). EQT also announced, on the same day, they are floating up to 23 million new shares of company stock to help pay the purchase price, hoping to raise ~$350 million. On Friday EQT announced it will float new bonds (debt) to raise another $350 million, also meant to help pay for the Chevron purchase.
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EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock

Looks like the rumors were true, at least one of them. Yesterday EQT announced it has cut a deal to buy Chevron’s considerable Appalachian assets for $735 million. The Reuters rumor from September said EQT had offered $750 million (see Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets). Also yesterday, EQT floated up to 23 million new shares of stock, on offer for $15.50 per share, attempting to raise ~$350 million to use toward the Chevron purchase.
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What EQT Purchase of Chevron’s M-U Assets Means, IF it Happens

Nearly a month ago sources talking to Reuters let it slip that EQT has offered $750 million for Chevron’s $6.5 billion worth of Marcellus/Utica assets (see Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets). Since that time we’ve not heard a peep about negotiations and whether or not Chevron is seriously considering the offer. Let’s do a little speculating. What if Chevron does accept that offer? What does it mean for investors and others with a stake in the outcome?
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Weekly Shale Drilling Permits for PA, OH, WV: Sep 28 – Oct 2

Somebody lit a fire under drillers in Pennsylvania last week! Or maybe we should say a fire was lit under the PA Dept. of Environmental Protection (DEP). PA issued 35 new permits last week spread pretty much across the entire state–in the northeast, central, and southwest portions of the state. Ohio, once again, issued no new Utica permits last week. West Virginia issued a single new permit last week.
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Weekly Shale Drilling Permits for PA, OH, WV: Sep 14-18

Last week Ohio finally broke the drought of not issuing permits for new shale wells in the Buckeye State. Finally! Last week Pennsylvania issued 13 new permits for wells on three well pads. Ohio issued 4 new permits for wells on two well pads. And West Virginia issued 1 new permit.
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Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets

Last December Chevron announced it was writing down over $10 billion worth of its U.S. onshore shale assets, with $6.5 billion of that number coming from its Marcellus/Utica assets. Also in December, the company posted for sale ALL of their M-U assets (see Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media). In February Chevron hired investment bank Barclays to help shop their M-U assets with the bids due in August (see Bids for Chevron’s 550K M-U Acres & 500 Wells Due in Mid-August). “Sources” talking to Reuters have let it leak that EQT has offered $750 million for Chevron’s $6.5 billion worth of assets.
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Pin Oak Buys Laurel Mountain Pipe System from Williams/Chevron

Pin Oak Midstream, a subsidiary of Pin Oak Energy Partners, a relatively young Marcellus/Utica driller based in Akron, OH, has purchased most of the pipeline assets of Laurel Mountain Midstream for an undisclosed amount. The assets include 1,050 miles of natural gas-gathering pipelines and five compressor stations located in three Pennsylvania counties.
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Chevron Buying Noble Energy in Deal Worth $13 Billion

Last year Chevron tried to buy Permian driller Anadarko Petroleum for $50 billion. Occidental Petroleum swooped in at the last minute and lured Anadarko away in a $57 billion deal. Chevron left the marriage altar with a cool $1 billion in breakup fees (see Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko). Chevron is now glad they got jilted because they’ve just brokered a new deal–to buy Noble Energy for $5 billion in stock and assumption of $8 billion in debt for a grand total of $13 billion. It’s a far lower amount and much more bang for the buck.
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Bids for Chevron’s 550K M-U Acres & 500 Wells Due in Mid-August

Last December Chevron announced it was writing down over $10 billion worth of its U.S. onshore shale assets, with $6.5 billion of that number coming from its Marcellus/Utica assets. Also in December, the company posted for sale ALL of their M-U assets (see Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media). Just sticking a “for sale by owner” sign on more than a half-million acres of leases and over 500 wells didn’t work, so in February Chevron hired investment bank Barclays to help shop their M-U assets (see Chevron Hires Barclays to Help Sell Its Marcellus/Utica Assets).
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Chevron Dumping Pittsburgh Office Space – 90,000 Sq Ft for Lease

Last December Chevron announced it was writing down the value of its Marcellus/Utica assets and putting those assets up for sale (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). Prior to the pandemic lockdown, Chevron said it would begin cutting 320 jobs in the M-U beginning in early April (see Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th). The cuts continued in May with another 80 employees getting a pink slip (see Chevron Cuts Another 80 Jobs in M-U; Still Looking for Buyer). It shouldn’t come as a surprise with all the layoffs that Chevron is now advertising most of their Pittsburgh HQ office space for sublease.
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Chevron Cuts Another 80 Jobs in M-U; Still Looking for Buyer

Last December Chevron announced it was writing down the value of its Marcellus/Utica assets and putting those assets up for sale (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). Prior to the pandemic lockdown, Chevron said it would begin cutting 320 jobs in the M-U beginning early April (see Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th). The cuts continue with another 80 employees getting a pink slip this week.
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