Range Resources Drills #1 Producing Marcellus Shale Well in 1Q15

Number-1.jpgRange Resources released their first quarter 2015 results on Tuesday. We’ve spotted a several news outlets trumpeting the “news” in the release that Range has drilled the highest-ever initial producing Utica Shale well at 59 million cubic feet per day (Mmcf/d)–the Claysville Sportsman’s Club No. 1 well in Washington County, PA. Thing is, we reported that news back in December (see Range Resources Drills Highest-Ever Initial Producing Utica Well). The Claysville Utica well is not new news. However, Range did report some new news on Tuesday: Range has drilled what they claim is the highest ever initially-producing Marcellus Shale well. This Marcellus monster well is a wet gas well that produced an initial rate of 43.4 million cubic feet equivalent per day (Mmcfe/d). Range does not identify the well by name but says it, like their monster Utica well, is located in Washington County, PA. Range reports production in 1Q15 hit a record high of 1,328 Mmcfe per day–26% higher than 1Q14. On the financial side, revenues for Range were up 1% in 1Q15 vs 1Q14, but net income was down 15%…
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CONSOL Energy Narrows Future Marcellus/Utica Dev to 5 Counties

CONSOL Energy released its first quarter 2015 update on Tuesday. Like virtually every other Marcellus/Utica driller, CONSOL’s 1Q15 profits dropped quite a bit–in this case 32%. But there was plenty of good news in Tuesday’s update. CONSOL reports Marcellus Shale production was up an impressive 75% year over year for the first quarter. They cut their costs in the Marcellus–from $3.18 per Mcfe in 1Q14 to $2.62 per Mcfe in 1Q15–$0.56 per Mcfe improvement (18%). The company achieved all-in cash costs of only $1.67 per Mcfe in the Marcellus Shale, which “continues to be the growth engine of the company.” Meanwhile, CONSOL continues to ramp up their Utica program. The company is currently drilling Utica wells in four counties: Greene and Westmoreland counties in PA; Monroe County, OH; and Marshall County, WV. CONSOL says the Utica wells they are currently drilling will come online in the second half of this year. However, given the current low price climate and cutbacks, CONSOL streamlined both its Marcellus and Utica operations in 1Q15. They’ve narrowed future Marcellus development to primarily Greene, Washington and Allegheny counties in PA; wet Utica development to Noble County, OH; and dry Utica development to Monroe County, OH…
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Antero’s Daily Natgas Production Surpasses Range in 1Q15

Antero Resources, one of the largest Marcellus/Utica drillers, issued their first quarter 2015 update yesterday. They report an incredible 89% increase in average daily production for 1Q15 over 1Q14. Antero’s average daily production for 1Q15 was 1,485 Mmcfe/d (million cubic feet equivalent per day). Compare that to Range Resources, that had 1,328 Mmcfe/d. Antero’s daily output was 12% higher! The impression one always gets is that Range is the big boy in the Marcellus. While true, it’s interesting that Antero has now eclipsed Range in daily production. Something worth noting. It’s not all good news for Antero, however. Like other drillers, net income for Antero went down 20% year over year for the first quarter. Here’s the Antero update…
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EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15

EXCO Resources, a sizable independent driller with operations in a number of locations, has (for the time being) suspended drilling in the Marcellus Shale. EXCO has been a company in trouble. We reported earlier this month a major shakeup at the company (see Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources). At the end of 2014, EXCO suspended dividend payments for shareholders (see EXCO Resources Suspends Dividend Payments to Shareholders). Also in December, the company appeared on Debtwire’s “Distressed Watchlist” (see 4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist). In February, EXCO was listed on “The Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). So it’s not all that surprising that EXCO did no new drilling, and only completed one outstanding well already drilled, in the Marcellus during the first three months of 2015. Here’s what EXCO said about Appalachia in their quarterly update from earlier this week…
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Williams 1Q15: Revenue Up 19%, Net Income Down Big 75%

The midstream behemoth Williams issued an update for first quarter 2015 yesterday. Williams, like other large companies, is split into pieces. There is the mother ship Williams (stock ticker symbol WMB) and Williams Partners (stock ticker symbol WPZ). Since Williams Partners is the active company in the northeast, we’ll limit our focus to the report from that part of the company. Williams merged with (bought out) Access Midstream. Although that process was completed during 1Q15, the numbers reported for Williams Partners are “pre-merger” numbers, excluding the Access Midstream numbers. We expect that will change in 2Q15 when the two will have been joined throughout the entire quarter. The financials show that like drillers, Williams experienced an increase in revenue in 1Q15 compared with a year ago, but a decrease in profit, or net income. Revenue in 1Q15 was $917 million, up 19%. But net income in 1Q15 was $89 million, down a whopping 75%. Here’s the update from Williams Partners, with plenty of references to Access Midstream too…
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Top 5 Utica Shale Wells by Initial 24-Hour Production Rate

As part of MDN’s reporting today about Range Resources and their stellar results with Marcellus and Utica Shale wells in 1Q15, we spotted handy table listing the top 5 Utica wells (to date) based on initial productivity. We have it for you below. The top 5 (highest IP first) were drilled by: Range Resources, Magnum Hunter, Rice Energy, Magnum Hunter (again), and Gulfport Energy…
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Rice Energy Signs Lease for New 150K Sq Ft HQ in Canonsburg

Rice Energy is expanding their office and staff–big time. According to the Pittsburgh Business Times, Rice Energy has just signed a lease agreement to take 150,000 square feet of new office space at the Southpointe II complex in Canonsburg (Washington County), PA. The new digs mean Rice can put all of their office people together, under one roof. Right now the Rice work force numbers around 335. By the time they are done expanding, they hope to employ around 700. Get those resumes ready!…
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Wrath of Kann: Lancaster Anti-Driller Arrested/Ejected from Mtg

All’s we can say is, it’s about time! A loud mouthed anti-drilling protester in Lancaster County, PA was arrested and removed from a public meeting Tuesday for disorderly conduct. That is, she wouldn’t shut her mouth. So the officials running the meeting removed her. The meeting was an educational forum about so-called home rule and what role the town can and should play when it comes to regulating things like pipelines. The Conestoga Township supervisor running the meeting asked for questions from the audience, not pontificating. The anti-driller wanted to use the forum as a platform to vomit her opinions about the Williams Atlantic Sunrise Pipeline project. The supervisor repeatedly said it is an educational forum and the audience may ASK QUESTIONS ONLY. She wouldn’t relent and she wouldn’t ask a question–and she wouldn’t shut up. So they removed her and now she’s threatening a lawsuit…
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MDN Pays Compliment to CORNy Anti Group

You won’t hear or read it often (because it’s rarely deserved), but we’d like to pay a compliment to a group of CORNy anti-drillers. MDN previously told you about CORN–the Coalition to re-Route Nexus (see CORNy Opposition to NEXUS Pipeline in Eastern Ohio). The group is encouraging people to show up at Federal Energy Regulatory Commission (FERC) scoping hearings about the NEXUS–to encourage FERC to re-route the pipeline. And therein is the genesis of our compliment. At least officially, CORN leaders don’t outright oppose building the NEXUS. Instead, they are asking for the NEXUS to be re-routed away from the Akron, OH area. There’s probably not a good reason to re-route it, but this is one of the few times (maybe the only time) an anti group has said, in essence, “hey, let’s work together and find a better route for this pipeline.” So kudos to the CORNy folks. We’ll hold you to your word that you DO want to see the pipeline built–just built along a different route…
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