EQT’s 1st Utica Well Shatters Record – 72.9 MMcf/d IP Rate!

top prizeWe have plenty of EQT news today, but none of it is (for us) as big as this: EQT finished fracking their very first Utica Shale well in Greene County, PA last week, a well that they call “the most technically challenging well” they’ve ever drilled. But man oh man was it worth it! The EQT Utica well is gargantuan. It is the new reigning #1 champ for any on-shore shale well anywhere in the world that we’re aware of when it comes to production. The EQT Utica well produced a truly astonishing initial production (IP) of 72.9 million cubic feet of natural gas per day (MMcf/d). The previous record-holder was a Range Resources Utica well in Washington County, PA at 59 MMcf/d (see Range Resources Drills #1 Producing Marcellus Shale Well in 1Q15). We’re not quite sure how to convey just how big this news is! EQT flowed their new Utica production right into a pipeline for sale–the well has not been shut in. Once the initial gush settled down, the well is now producing 22 MMcf/d. Stupendous output. EQT is planning to drill their second Utica well in Wetzel County, WV later this year…
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EQT 2Q15: Production Sales Up 34%, Production Rev. Down 146%

Yesterday EQT became one of the first Marcellus/Utica producers (what we call “drillers”) to turn in their second quarter operating and financial results. They are a big and important player in the northeast and their results are instructive. The EQT update shows that it’s not only oilfield services companies like Halliburton and Baker Hughes that are being negatively affected by the low commodity price of natural gas and oil (see Tough Times: Baker Hughes Net Income Drops 153% in 1 Year). While EQT’s production year over year for 2Q15 was up an impressive 34%, because the hedges that were protecting the price they received have expired, EQT received a 40% lower price for their gas second quarter this year over last year–meaning revenue for natgas production in 2Q15 for EQT fell 146% (from $144.6 million in 2Q14 to minus $66.9 million in 2Q15)…
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EQT Midstream 2Q15: Lots of Pipeline Projects Still Coming

While EQT Midstream numbers were included in today’s MDN story about EQT’s second quarter financial and operating results, the company also issued a second, separate update for EQT Midstream. We include a portion of that update below because it outlines the many pipeline projects the company is actively pursuing with their investment dollars. Those projects include building the new Allegheny Valley Connector; expanding existing gathering systems, including the Jupiter and Northern WV Marcellus Gathering systems; investment in the Ohio Valley Connector; investment in the Antero Resources east side expansion project; building the Mountain Valley Pipeline; and a new project announced yesterday–a new natural gas header pipeline for Range Resources (see today’s story on the Range announcement)…
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EQT Midstream Building $250 Million Pipeline – for Range Resources!

In a show of “coopetition” or cooperative competition, EQT Midstream, a division of major Marcellus/Utica driller EQT Corporation, is going to build a $250 million, 32-mile “header pipeline” for arch-rival Range Resources in southwestern Pennsylvania to “support Range’s dry Marcellus and Utica development.” The new pipeline, which will be built in two phases in 2016 and 2017, will provide Range with more than half a billion cubic feet of natural capacity per day…
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Shell Will Build Gas-Fired Electric Plant to Power PA Cracker

If Shell builds an ethane cracker plant in Beaver County, PA, as they’ve been teasing since 2011, the massive plant will require a lot of electricity to power it–enough electricity to power 100,000 homes. Shell does not plan to just hook up to the local utility for its electricity. Instead, they will build their own natural gas-powered electric generating plant on location. Any electricity they generate but can’t use will be sold to the local power grid…
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Marcellus Gas on the Way for PA Customers with No Pipelines

In June MDN told you about a very neat concept–delivering natural gas to customers who don’t live near pipelines and likely never will (see Getting Marcellus NatGas to Rural Customers without Pipelines). As we told you at the time, Compass Natural Gas is building a distribution terminal in Lycoming County, PA that will accept Marcellus Shale gas in, clean it up (get rid of the water in it), compress it to 3600 psi, and load it into specially designed trailers and haul it to customers. We have an update. Work is proceeding on the Lycoming County facility–and Compass will build its second terminal in Centre County, PA. Compass plans six of these terminals in all…
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Drillers are Drilling Less in PA State Forests

Shale gas development on previously leased state land in Pennsylvania is slowing down–a lot. The number of new well pads in state forests dropped to eight new pads (32 acres of land) during 2014. That’s down from 19 new pads in 2013, and a high of 86 pads in 2011. New pipelines being built converted 66 acres of forestland into green fairways in 2014, down from 2011 when 272 acres of forestland was used for pipelines…
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Tough Times: Patterson-UTI’s Net Income Drops 135% in 1 Year

Not that we need it, but we have evidence of more tough times in the oilfield services business. We previously reported on tough times for Halliburton (see Tough Times: Halliburton’s Net Income Drops 93% in 1 Year) and Baker Hughes (see Tough Times: Baker Hughes Net Income Drops 153% in 1 Year). They are some of the largest oilfield services companies in the world–both operating in the Marcellus/Utica region. Patterson-UTI Energy is another Marcellus/Utica oilfield services firm, although much smaller than Halliburton and BH. Sometimes being smaller means being more maneuverable–fleet of foot–able to adapt quicker. Being smaller has not, however, shielded Patterson from the current downturn. Patterson reports revenue for 2Q14 (a year ago) was $757.3 million. Revenue for 2Q15 was $472.8 million–a drop of 38% year over year. When you add in expenses of all types, the picture is dismal: In 2Q14 Patterson’s net income was $54.3 million. In 2Q15 it was minus $19.0 million, or $19M in the hole–which is a 135% drop year over year. Patterson’s ratios similar to both Halliburton and BH…
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EPA IG Report Says EPA Can Keep its Finger in the Fracking Pie

keep finger in the pieIn June the federal Environmental Protection Agency (EPA) issued a report detailing the findings of their four-year study that found no harmful effects on water supplies from fracking (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). That doesn’t stop the EPA from using whatever toehold they can to regulate fracking–an activity that Constitutionally belongs to the states. Recently the EPA’s Office of Inspector General released a report (full copy below) saying, in essence, “we lost the public argument that we should regulate fracking, but here’s a couple of ways we can keep our finger in the fracking pie”…
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New Reality in the Utica: Producers Hurting, Midstreamers Flush

According to the president of the Ohio Oil and Gas Association (OOGA) David Hill, oil and gas producers–the ones who find, drill for and pump out of the ground oil and gas, are hurting bad and “concerned” about the future. On the other hand, if you’re in the midstream (pipelines) part of the industry, things are humming along. Welcome to the new reality in the Marcellus/Utica…
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PennEast Pipeline Offers Spirited Defense, Counters False Claims

How do you break through the ongoing misinformation pumped out by mainstream media and lying environmental organizations like the Sierra Club and THE Delaware Riverkeeper when it comes to the necessity, wholesomeness and righteousness of pipeline projects like the PennEast Pipeline planned to run from the Wilkes-Barre, PA area to the Trenton, NJ area? Peter Terranova, chairman of the PennEast Pipeline Board of Managers, is taking his message about the PennEast directly to the citizens by publishing a guest viewpoint in Wilkes-Barre’s The Citizens’ Voice newspaper. In his column Terranova lays out the case for the PennEast–and addresses some of the lies being spread by ne’er-do-well “environmental” organizations…
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Columbia Midstream Donates $20K to Washington County, PA Fire Dept

Columbia Midstream, an affiliate of Columbia Pipeline Group, Inc., presented a $20,000 grant to the West Finley Volunteer Fire Company on Tuesday to aid the funding of a new fire truck for the township. The check presentation took place at the West Finley (Washington County), PA fire station, where Steve Emery, West Finley Fire Chief, accepted the check on behalf of the fire company…
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