Magnum Hunter CEO: No New Marcellus/Utica Drilling in 2015

no drillingMagnum Hunter Resources (MHR), a small but growing driller in the Marcellus/Utica, gave one day’s notice and then convened a phone call with investors last Friday to declare they’re not spending a dime on new drilling in 2015–until the prices charged by oilfield services companies (the companies that do the drilling and fracking) come down–a lot. MHR CEO Gary Evans said he’s looking for a 40% discount compared to what the company paid in 2014 for the same services–and until they get it, the drill rigs for MHR will be idled. But have no fear, production for the company (meaning revenue) will continue to grow each quarter in 2015 because of wells already drilled and shut-in, waiting to be connected to pipelines…
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Energy Transfer Partners Buys Regency Energy for $25B

Big NewsBig news in the midstream (pipelines and processing plants) world. Today, Energy Transfer Partners (ETP) announced they are merging with and buying Regency Energy Partners in a deal with a total value of $24.8 billion–$18 billion in stock and cash, and $6.8 billion in assumed Regency debts. You may recognize both names, as both companies are active in the Marcellus and Utica Shale…
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MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly”

What’s the prognosis for new drilling activity in the Marcellus Shale? Two industry leaders gave a sobering assessment to the Philadelphia Inquirer. Dave Spigelmyer, president of the Marcellus Shale Coalition (MSC) and Lou D’Amico, president of the Pennsylvania Independent Oil and Gas Association (PIOGA) spoke frankly about where drilling is scaling back (more so in the wet gas areas than the dry gas areas, but dry gas still affected too), and when the outlook is likely to improve (not any time soon)…
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MDN Exclusive: WV Horizontal Well Production Report w/Well Names

The West Virginia Dept. of Environmental Protection (WVDEP) requires annual reporting of production data–woefully out of step with both Ohio (quarterly reports) and Pennsylvania (monthly reports starting in March 2015). The WVDEP “requires” drillers to file reports by March of each year–but many wells did not list production data for 2013 until “recently”–in September 2014. What does the data show? Production varies widely depending on the geography. Below are some examples, along with the complete production report from 2013 for horizontal wells in WV, specially produced to show the well name (available only from MDN)…
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Latest Rice Energy Investor Presentation Reveals New Info

Last week Rice Energy posted a new PowerPoint investor presentation on their website. We like to share these concise “get to the point” presentations with the MDN audience because they’re full of maps and information that landowners, energy companies and supply chain companies find useful. This latest from Rice is no exception. Early on we learn a neat fact (slide #3): Rice Energy hit Marcellus Shale production levels of 200, 300, 400 and 500 million cubic feet per day with fewer wells than any other operator in the Marcellus. Cool. Here’s what else we notice in the latest Rice presentation…
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As Maryland Gets Ready to Frack, Will New Gov Change Regs?

Two members of the Maryland Marcellus Shale Advisory Commission, writing in the Baltimore Sun yesterday, say that with only a few weeks left before new rules to allow Marcellus Shale drilling in western Maryland go into effect, the state’s newly elected Republican governor, Larry Hogan, has “every right to thoroughly review, modify or even pull back the draft regulations.” But the two commission members–Harry Weiss, a partner at the Ballard Spahr law firm, and Jeffrey Kupfer, former deputy secretary at the U.S. Dept. of Energy–say before Hogan goes changing things, he should consider…
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Anti-Drillers Take Aim at Pat Henderson’s Move from Govt to MSC

A new hit piece from the drive-by Democrat propagandists known as PBS StateImpact Pennsylvania. Patrick Henderson, formerly PA Gov. Tom Corbett’s Energy Executive, has had the unmitigated gall to land on his feet in a new job–now gainfully employed by the Marcellus Shale Coalition as its Director of Regulatory Affairs. StateImpact is dutifully reporting the Democrat talking points that this “proves” the Corbett administration was in bed with drillers all along. Meanwhile, John Quigley once worked for Ed Rendell and later went to work for Big Environment–an anti-drilling group known as PennFuture–after he left being Secretary of the Dept. of Natural Resources in PA. But not a peep from StateImpact on how that “proves” the Rendell administration was in bed with anti-frackers. Quigley has just been recycled by Tom Wolf (Wolf’s administration increasingly looks like the third term of the Rendell administration) to head the Dept. of Environmental Protection (DEP). No speculation from StateImpact about how Quigley may be “in bed” with the enviros as he assumes his vital-to-the-Marcellus-industry post at the DEP. Nope. Just another day slavishly regurgitating the Dem talking points…
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