| | | | | | | | | | | | | | | | |

19 New Shale Well Permits Issued for PA-OH-WV Mar 4 – 10

There were 19 new permits issued to drill in the Marcellus/Utica during the week of Mar. 4 – 10, up 2 from 17 permits issued the prior week. Pennsylvania issued 11 new permits. Ohio issued 5 new permits. And West Virginia issued 3 new permits. Range Resources and Ascent Resources tied for most new permits with 5 each. Range received 5 permits to drill in two PA counties: Lycoming and Washington. Ascent received 5 permits to drill in Belmont County, OH. Chesapeake Energy got 3 permits to drill in Bradford County, PA, and Seneca Resource also received 3 permits for Tioga County, PA. Southwestern Energy scored 2 permits for Ohio County, WV, and CNX Resources received a single permit for Marshall County, WV.
Continue reading

| |

WV Mineral Rights Group Cut Out Landmen, Deal Direct w/Drillers

Cutting out the middleman

In the early days of the Marcellus/Utica, landowners often formed groups to negotiate lease terms on behalf of all members. It’s a smart move as it tends to deliver better lease terms — more money for a signing bonus, better royalty rates, and better language in the contract. In fact, MDN got its start when editor Jim Willis noticed a group of 300 landowners (many of them farmers) in nearby Deposit, NY, signed a lease deal with XTO Energy for $90 million (see this story). It made more than one millionaire! Some of the leases signed by landowner groups years ago are now expiring and in one case — in Marshall County, WV — group members are once again shopping their land as an entire block, looking for drillers who will give them the best terms.
Continue reading

| | | |

New Resource for WV Landowners on Leasing for Pore Space

In February, MDN brought readers the news that Tenaska, one of the largest privately operated companies in the U.S., is building a carbon capture and sequestration (CCS) hub spanning tens of thousands of acres in Pennsylvania, Ohio, and West Virginia (see Landmen Knocking Doors in PA, OH, WV to Sign for CCS, Pore Rights). Landmen are “knocking on doors again” in all three states, looking to sign up landowners to store carbon dioxide deep underground. The West Virginia Surface Owners’ Rights Association (WVSORA) has done some research and is offering its advice to landowners about leasing pore space.
Continue reading

| | | | | | |

Baker Hughes U.S. Rig Count Loses 7 @ 622, M-U Even @ 44

Last week, the Baker Hughes rig count lost seven rigs after gaining three rigs the week before. The count went from 629 active rigs two weeks ago to 622 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October until recently, when it went higher for a few weeks. But now it’s back in the same long-term range. The Marcellus/Utica remained the same last week with Pennsylvania at 24 rigs (the most since last June), Ohio with 12 rigs, and West Virginia with 8 rigs. The M-U combined is running 44 rigs, which it has run in four of the last five weeks.
Continue reading

| | | | | | | | | | | | | | | | | | | |

17 New Shale Well Permits Issued for PA-OH-WV Feb 26 – Mar 3

There were 17 new permits issued to drill in the Marcellus/Utica during the week of Feb. 26 – Mar. 3, down 1 from 18 permits issued the prior week. Pennsylvania issued 8 new permits last week. Ohio issued 4 new permits. And West Virginia issued 5 new permits last week. Four companies tied for the top slot of receiving 3 permits each: Chesapeake Energy (Susquehanna County, PA), Seneca Resources (Tioga County, PA), Gulfport Energy (Harrison County, OH), and Antero Resources (Ritchie County, WV). Arsenal Resources received 2 permits (Taylor County, WV). Three companies received a single new permit: Laurel Mountain Energy (Butler County, PA), Campbell Oil & Gas (Westmoreland County, PA), and EOG Resources (Noble County, OH).
Continue reading

| | | |

OFS Co. with 75 Jobs Moves from Washington, PA to Chester, WV

Here’s something you don’t read about every day. An oilfield services company, Heavy Iron Oilfield Services, recently moved from its birthplace (founded in 2011) in Washington (Washington County), PA, across the border to a new location in Chester (Hancock County), WV. Washington County is a hotbed of drilling activity in Southwestern PA. But then again, Hancock County sees a lot of drilling, too. The reason for the move? Easier access to multiple job sites in the tri-state area and a pool of qualified workers to expand the business.
Continue reading

| | | | | | |

Baker Hughes U.S. Rig Count Adds 3 @ 629, M-U Adds 1 @ 44

Last week, the Baker Hughes rig count gained three rigs after losing two rigs the week before. The count went from 626 active rigs two weeks ago to 629 last week. It is the highest total rig count in the U.S. since September 22, 2023! The national count had consistently stayed between 620 and 625 (or one or two above or below that range) since last October, but now appears to be breaking out of that pattern and moving higher. The Marcellus/Utica regained the one rig it had lost two weeks ago. Pennsylvania remained at 24 rigs (the most since last June). Ohio stayed at 12 rigs. West Virginia regained a rig it had lost in the prior week and now operates 8 rigs. The M-U combined is running 44 rigs.
Continue reading

| | | | | | | | | | | | | | |

18 New Shale Well Permits Issued for PA-OH-WV Feb 19 – 25

There were 18 new permits issued to drill in the Marcellus/Utica during the week of Feb. 19 – 25, up from 13 permits issued the prior week. Pennsylvania issued 8 new permits last week. Ohio issued 9 new permits (after issuing none the week before). West Virginia issued just 1 new permit last week. Encino Energy took the prize for the most permits issued with 9 permits, all for Carroll County, OH. Repsol had the second most permits with 5 issued for Bradford County, PA. Everyone else had a single new permit: Beech Resources (Lycoming County, PA), Chesapeake Energy (Bradford County, PA), CNX Resources (Westmoreland County, PA), and HG Energy (Lewis County, WV).
Continue reading

| | | |

WV Warns 6 More Banks They are in Danger of Blacklist re ESG

West Virginia State Treasurer Riley Moore has sent notices to six additional financial institutions warning them of potential inclusion on the state’s Restricted Financial Institution List (can’t do business with the state) after his office made an initial determination that the institutions appear to be engaged in boycotts of fossil fuel companies as defined under state law. This is not the first time Moore has put Big Banks on the blacklist (see WV Ends Business with 5 Banks Guilty of Boycotting Fossil Fuels). We have the list of companies Moore contacted…
Continue reading

| | | |

WV Legislature Votes to Keep Flawed O&G Valuation Formula in Perpetuity

Members of the Wet Virginia State Senate voted on Friday to permanently retain a flawed oil and gas well valuation formula. The Senate vote comes after the House had previously voted to do the same thing (see WV’s Botched NatGas Property Tax Gets Messier with House Vote). The formula used has been the cause of unending confusion and problems in the state for two years (see WV NatGas Property Tax Rule Still a Mess, 303 Cases Appealed). Also, due to an error in calculating the confusing formula, shale counties in the state have lost out on millions in tax revenues (see NatGas WV Property Tax Mistake a Hot Mess – Counties Out Millions). Yet legislators, promising to “fix” the formula next year, voted to keep the current formula in place (that would have been sunsetted in 2025).
Continue reading

| | | | | | |

Baker Hughes U.S. Rig Count Adds 5 @ 626, M-U Loses 1 @ 43

Last week, the Baker Hughes rig count gained five rigs after losing two rigs the week before. The count went from 621 active rigs two weeks ago to 626 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October. The Marcellus/Utica lost one rig last week. Pennsylvania actually added two rigs last week and now operates 24 rigs (the most since last June). Ohio and West Virginia each lost one rig, with Ohio now at 12 active rigs and West Virginia at seven active rigs.
Continue reading

| | | | | | | | | | | | |

13 New Shale Well Permits Issued for PA-OH-WV Feb 12 – 18

There were 13 new permits issued to drill in the Marcellus/Utica during the week of Feb. 12 – 18, versus 19 permits issued the prior week. Pennsylvania issued 11 new permits last week. Ohio issued no new permits. West Virginia issued 2 new permits last week. Chesapeake Energy landed the most new permits, with 5 issued in Bradford County, PA. Range Resources had 3 new permits issued in Washington County, PA. Coterra Energy had 2 new permits in Susquehanna County, PA. Southwestern Energy also had 2 new permits issued in Ohio County, WV. And EQT, the largest natural gas producer in the country, had a single new permit issued in Greene County, PA.
Continue reading

| | | | | | |

Layoffs Hitting the Gas Fields, Including Marcellus/Utica

According to Reuters, oilfield service companies and drillers have put the brakes on hiring and “further job cuts could loom” as natural gas producers respond to sliding prices by slashing spending on new wells to reduce excess production. We told you yesterday that Chesapeake Energy announced a coming rig and frac crew cut in the Marcellus (see Chesapeake Dropping 1 Rig in Marcellus as it Waits to Merge with SWN). But it’s not some far-off “maybe it will happen” thing. Layoffs in the M-U are already happening. For example, fracking company NexTier merged with Patterson-UTI last September. Because of duplication of services, Patterson recently announced it will close a facility in Mansfield, Pennsylvania, affecting some 104 employees.
Continue reading

| | | | | | | |

Equitrans Looking at Potential Buyer; MVP Now Delayed Until 2Q

Two really big (huge) pieces of news are coming from yesterday’s Equitrans Midstream fourth quarter and full-year 2023 update. The first bit of news is that Equitrans is actively considering a buyout offer. The company doesn’t use that exact language, but that’s what’s happening. This should come as no surprise, given the rumor mill on a potential Equitrans sale heated up last December (see Equitrans Midstream, Builder of MVP, Considers Selling Itself). The second bit of news is that (surprise!) the 303-mile Mountain Valley Pipeline (MVP) project, which was supposed to be done and online by the end of March, will slip into the second quarter. Oh! And the price tag has increased once again, thanks to various lawsuits by Big Green and complicit judges.
Continue reading

| | | | | | | | | | | | | |

DT Midstream 4Q – M-U Pipeline Operations Expand, Looking for M&A

DT Midstream (DTM), headquartered in Detroit, owns major assets in the Marcellus/Utica region and other regions like the Haynesville. DTM issued its fourth quarter 2023 update last Friday. The Marcellus/Utica region (which they call Northeast in the report) received several prominent mentions during a conference call with analysts. Also of note were comments by DT CEO David Slater, who said he’s positioning the company to take advantage of “bolt-on” opportunities in the regions where they operate. Meaning he’s on the lookout for mergers and acquisitions.
Continue reading

| | | |

WV’s Botched NatGas Property Tax Gets Messier with House Vote

Last summer, MDN told you that a new system to assess valuations of shale wells in West Virginia had turned into a royal mess (see WV NatGas Property Tax Rule Still a Mess, 303 Cases Appealed). In January, that mess got a whole lot messier — what we call a hot mess — when a “clerical error” by a third-party vendor in calculating the new formula for natural gas property tax valuations caused newly producing natural gas wells to be undervalued, leading to the loss of millions of dollars for the counties that see the most shale drilling (see NatGas WV Property Tax Mistake a Hot Mess – Counties Out Millions). Now, the legislature, in its wisdom, has voted to keep the flawed formula (that resulted in a clerical error) in place permanently.
Continue reading