Investment Firm Offers Devon Energy $8B for PA Marcellus Assets
From the very first whisper of the rumor that Devon Energy was sniffing around a buyout and merger with Coterra Energy, we wondered, speculated, and worried about what such a merger would mean for Coterra’s considerable Marcellus assets in northeast Pennsylvania. From the outset, activist investor Kimmeridge (with a stake in both Coterra and Devon) has pressured Devon to consider selling the Marcellus assets (see Kimmeridge Hints Devon Energy Needs to Sell M-U After Coterra Merger). Reuters is reporting the rumor, based on super-secret inside sources, that investment firm Stone Ridge Asset Management is offering Devon $8 billion to take the Marcellus off its hands. Read More “Investment Firm Offers Devon Energy $8B for PA Marcellus Assets”
The Pennsylvania Department of Environmental Protection issued an air quality permit on May 18, 2026, to MarkWest Liberty Midstream, authorizing the expansion of its Harmon Creek Natural Gas Processing Plant in Washington County. The MarkWest name is still used, although the company is now MPLX. The DEP permit approval allows the addition of a third cryogenic plant and a second de-ethanization plant. A number of Big Green groups colluded in an attempt to block the permits, but their demands were ignored. 
U.S. shale producers face limited ability to rapidly boost crude output because drilled-but-uncompleted wells, or DUCs, have fallen to record lows. DUCs can bring production online in six to nine weeks, faster and cheaper than drilling new wells, making them a key industry buffer during supply shocks. Since the U.S.-Israeli war on Iran disrupted Middle Eastern oil flows, U.S. exports and refinery runs have surged, drawing down crude inventories sharply. But years of DUC depletion have reduced shale’s flexibility. Operators are now adding rigs and completion crews, especially in the Permian, to rebuild inventories as higher future oil prices support new drilling. 
Last week, the combined Marcellus/Utica Baker Hughes rig count remained at 36 active rigs for the third week in a row. The M-U’s chief competitor, the Haynesville, maintained its count of 55 active rigs, operating 19 more than the M-U. The national count added 4 rigs last week, bringing the total to 562 rigs. That’s the sixth week in a row the national count has added rigs, driven by new oil-focused rigs. Baker Hughes said oil rigs rose by four to 429 last week, their highest since June 2025, while gas rigs held steady at 125 and other miscellaneous rigs held steady at 8. 
NATIONAL: U.S. natural gas futures end month with gains; Hedge funds are bearish on natural gas for first time since 2024; US’ oil, natural gas production could be maximized with new method; INTERNATIONAL: Oil settles at six-week low; Mitsui eyes LNG expansion as data centers drive power demand; America’s LNG boom is real — but China is planning beyond it; The climate house of cards is finally collapsing; The UAE’s OPEC exit has ramifications for global oil market, U.S. producers. 
The Marcellus/Utica region received 15 new drilling permits last week, May 18 – 24, down from 23 permits issued two weeks ago. Pennsylvania issued 7 of last week’s permits. Ohio issued no new permits. West Virginia issued 8 new permits last week. The drillers who received new permits included: Antero Resources, Clean Energy E&P, EQT, Expand Energy, and PennEnergy Resources. 
Pennsylvania Republican gubernatorial candidate Stacy Garrity (currently the State Treasurer) yesterday called for a “total pause” on Pennsylvania A.I. data center development, arguing communities need time to update zoning, protect neighborhoods and farmland, strengthen noise rules, and secure transparency on water, energy, health, infrastructure, taxpayer, and ratepayer impacts. While we have expressed similar sentiment that common-sense guidelines are needed for data centers regarding water, noise, and energy use, we strongly disagree with a total statewide (and indefinite) “pause” on new projects. It sends the exact WRONG signal to the tech industry — that both Republicans and Democrats in the state are now blocking data centers in the Keystone State. Pausing or blocking data centers jeopardizes $92 billion worth of private investment in the state. 
Ohio Governor Mike DeWine announced on May 27, 2026, that he has directed the chair of the Ohio Tax Credit Authority to pause consideration of any new data center tax exemption requests. The pause comes while the Ohio General Assembly’s Joint Data Center Committee “studies” the growth of data centers in the state. DeWine noted that data centers previously granted sales and use tax benefits reported a total capital investment of $27.2 billion in 2025. The Tax Credit Authority will stop accepting new exemption proposals after a meeting next Monday, where it will consider one final proposal. DeWine said the move is a suspension of new exemptions, NOT a data center ban. 
In April 2025, MDN told you about a new greenfield expansion of Kinder Morgan’s (KM) Elba Express pipeline into South Carolina to serve growing demand for natural gas in the state (see 
The oil and gas industry not only benefits from the AI (data center) sector by supplying natural gas to power plants, it also benefits by *using* AI in its operations. Like just about every other business on the planet, O&G companies are now using (embedding) AI into their business. Here’s a startling statistic: In 2025, O&G companies worldwide spent a cumulative estimated $25 billion on AI, according to Rystad Energy. By 2035, that number will be an estimated $50 billion per year. Amazing! Are you looking for a hot hot hot job? Look at AI in O&G. 
Pennsylvania Governor Josh Shapiro introduced new “Responsible Infrastructure Development (GRID) Standards” for data center developers yesterday. These standards aim to tie tax breaks to sustainability and transparency, addressing concerns about energy affordability, pollution, noise, and overall quality of life. Under Shapiro’s GRID plan, data center developers seeking tax exemptions would need to demonstrate that they meet requirements to protect energy affordability, promote transparency and community engagement, support workforce development, and safeguard the environment. Projects would also be required to incorporate so-called clean energy sources and adhere to strict efficiency and environmental protection measures. 
Sen. Jarrett Coleman (R-Bucks/Lehigh) and Rep. Jamie Walsh (R-Luzerne) have introduced legislation in Pennsylvania to address the rapid expansion of data centers. Their proposed bills aim to repeal a 2021 tax exemption that incentivizes data centers to locate in the state. The bills would also empower municipalities to implement an 18-month moratorium on data center development applications. With all due respect, these two Republicans have lost their way and are out of their minds.