GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH

big newsBig news for GreenHunter Resources: They finally have two more wastewater injection wells up and running at their Mills Hunter facility in Meigs County, OH. In May we reported that GreenHunter was hoping to have four new injection wells operating at the Mills Hunter facility by the end of June, for a total of six operating wells (see GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells). However, Mills Hunter has just two new wells now operating, for a total of four, and it’s nearly August. GreenHunter’s COO Kirk Trosclair continues to express his frustration at delays from the Ohio Dept. of Natural Resources (ODNR), saying instead of taking 30-45 days for approvals (which is what it used to take), it’s now taking ODNR more than 90 days to issue approvals. GreenHunter has two more wells at the Mills Hunter facility working their way through the approval process now. But let’s not dwell on the negatives…
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Southwestern Energy 2Q15: Production Up 30%, Net Inc. Down 481%

Southwestern Energy, one of the largest natural gas producers in the Marcellus Shale and the fourth largest natural gas producer in the Lower 48 States, issued their second quarter 2015 update yesterday. There is a lot to digest in this massive update. Southwestern, you may recall, added to their already-considerable northeastern Pennsylvania Marcellus holdings by purchasing WPX’s NEPA leases, wells and operations in a $300 million that closed in February of this year (see WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern). So this 2Q15 update will be the first full quarter to include numbers from the WPX purchase. Late last year Southwestern picked up a massive amount of new acreage and already-drilled wells in the southwestern portion of the Marcellus–most of it in West Virginia–in a $5.375 billion deal with Chesapeake Energy (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). Yes, Southwestern is serious about the Marcellus! What do the 2Q15 numbers for Southwestern show?…
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Southwestern Energy Slide Deck w/MDN’s Favorites Identified

Southwestern Energy Company turned in their latest quarterly update yesterday (see our companion story today). Perhaps the biggest eye-opener for us is learning that Southwestern is now the fourth largest natural gas producer in the United States (lower 48 states). In addition to yesterday’s quarterly update, Southwestern released their latest PowerPoint presentation for analysts a couple of weeks ago. We have a copy of that presentation below along with our list of favorite slides. Lots of charts and graphs and yes, even useful information for landowners, investors, supply chain companies and competitors…
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Gulfport Releases Half of 2Q15 Update – The Good News Part

Gulfport Energy released their second quarter 2015 operational (but not financial) update yesterday. Among the highlights: Production was up a huge 196% year over year–to an average 473.9 million cubic feet equivalent per day (MMcfe/d). Of that number, 457.6 MMcfe/d (97%) came from the Utica Shale. Gulfport’s current production mix is 77% natural gas, 13% natural gas liquids and 10% oil. How much money did Gulfport get for their products? They received, on average, $1.99 per Mcf for natural gas, $0.30 per gallon for NGLs, and $47.40 per barrel of oil. If you average it all together, it works out to be $2.60 per Mcfe. Gulfport is clever. They released the good news yesterday–how much production is up, etc. But they haven’t released the bad news about earnings–yet. The bad news shoe will drop on August 5th when Gulfport publishes their 2Q15 financial report. Meanwhile, let’s bask in the glow of good news…
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CONSOL Energy 2Q15: Marcellus Production Up 64%, CNX Rev Down 12%

CONSOL Energy released their second quarter 2015 operating and financial update today. No mention of the pressure they are currently under by their #1 shareholder to spin off or sell off the gas drilling division (see CONSOL’s #1 Stockholder Says Spin Off CNX Gas…or Sell It). There are some bright spots from CONSOL for 2Q15, including a 64% increase in Marcellus Shale production (39 billion cubic feet equivalent in 2Q15) and a 524% increase in Utica Shale production (1.7 Bcfe in 2Q14, 10.6 Bcfe in 2Q15). If you read through the update you’ll find CONSOL believes Utica dry gas may be where they focus their future efforts, given recent results from some of their drilling. CONSOL is a complicated company–a lot of their operations and revenue deal with coal. It was a coal company long before it began drilling for natural gas. To analyze their financials–separating out the gas from the coal–is not easy. What we can tell you is that revenue from natural gas, NGLs and oil went down year over year, from $229.7 million in 2Q14 to $201.9 million in 2Q15 (12%), which isn’t nearly as bad as some of the other drillers in the Marcellus/Utica…
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Marcellus/Utica Provide 85% of Natgas Production Growth Since 2012

If you look at the incredible increase in shale production from 2012 to the present, 85% of that growth comes from two shale plays: the Marcellus and the Utica. So says the venerable U.S. Energy Information Administration. Why from those two plays? According to the EIA, “because of ongoing improvements in precision and efficiency of horizontal drilling and hydraulic fracturing occurring in those regions.” Not only do we have the biggest reserves in the northeast–we also have better tech and ways of getting at those reserves. How cool is that?…
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PA House Speaker Stands Firm Against Gov Wolf’s Severance Tax

Thank God for Pennsylvania House Speaker Mike Turzai, Republican from Allegheny. Turzai continues to stand against the lunacy of Tom Wolf’s insane budget proposals, including a proposed Marcellus Shale severance tax that would further gut shale drilling in the state–handing the money raised over to teachers’ unions. Turzai said it’s time to think about overriding Wolf’s veto of the proposed Republican budget–a plan which balances the budget instead of running up the tab as Wolf would do. The Republican budget would INCREASE spending on education (something mainstream media doesn’t tell you) all while not increasing taxes on the middle class and without killing the Marcellus industry with a new/high tax. Socialist Tom Wolf won’t hear of it. So Turzai is putting out the word: Are there 16 Democrats in the House and 4 Democrats in the Senate that will be brave and bipartisan and reach across the isle to vote for a sane budget–to override Wolf’s veto? Apparently not yet–but perhaps there will be in time. Meanwhile, Wolf’s dirty tricks division continues to launch advertisements to smear Republicans, something Turzai calls “tawdry and unproductive”…
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Antis Plan to Protest Pipeline Talk Tonight in Lancaster County

A small group of anti-fossil fuel protesters plans to disrupt an information meeting being hosted by the Chamber of Commerce in Lancaster County tonight. The event will feature representatives from Williams discussing and sharing information about their planned $3 billion Atlantic Coast Pipeline project–a project largely embraced by the public but opposed by a few small pockets of dedicated protesters, one such group being Lancaster Against Pipelines. The Atlantic Coast project will flow Marcellus Shale gas to Mid-Atlantic and southern states. Most of the protesters are too cheap to buy a $25 ticket to the event, so they’ll stand outside and make fools of themselves by chanting and hollering at those who enter the meeting. We encourage a contingent of pro-drillers to show up and stand outside to show support for the project. It’s time to show everyone that supporters far outnumber detractors…
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Mariner East Pipeline Uses Eminent Domain Against SWPA Landowners

Confession: We have a tough time with eminent domain cases filed by pipeline companies. We believe property rights are sacrosanct–you don’t tell me what I can and can’t do with my property, and I don’t tell you what you can and can’t do with your property. But then zoning laws enter the picture. And statewide bans on fracking. Etc. What happens if all but a handful of landowners sign up to allow a pipeline? Should an entire project that when built results in a greater “good” for society get nixed because of half a dozen of holdout landowners? Tough tough issues. The latest skirmish comes from Washington County, PA where Sunoco Logistics has filed eminent domain cases against a handful of landowners who won’t allow new construction through their property for the Mariner East Pipeline project. Sunoco has taken them to court and seeks leases on a total of 11 acres…
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UIL Invests $80M in Kinder Morgan’s Northeast Energy Direct Pipeline

UIL Holdings, a Connecticut-based utility with 725,000 electric and natural gas customers in two states, is investing $80 million in Kinder Morgan’s Northeast Energy Direct (NED) natural gas pipeline project that will stretch from NY to near Boston, MA to bring cheap, abundant and clean-burning natural gas to New England. One of UIL’s subsidiary companies is Berkshire Gas Company, one of NED’s anchor shippers. Berkshire, you may recall, is at capacity now with respect to natural gas supplies they receive from Kinder’s Tennessee Gas Pipeline. Berkshire has put a moratorium on accepting any new hookups for natural gas in Franklin County, MA (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). You may also recall that UIL is the company that offered the City of Philadelphia the best deal it will ever get to sell the city-owned Philadelphia Gas Works utility, a deal ultimately scuttled by the Democrat-controlled–and profoundly corrupt–Philadelphia City Council (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). UIL will get a 2.5% ownership stake in NED in return for it’s $80M investment…
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