Warren Resources Files for Bankruptcy, Wiping Out Stockholders

Warren ResourcesWarren Resources, a small driller that drilled and brought online their first two Marcellus Shale wells last year, is based in Houston and operates in California, Colorado, Wyoming and Pennsylvania. In February MDN told you that Warren missed an important $7.5 million payment, the first ominous signal of what was to come (see Warren Resources Misses $7.5M Debt Payment, 30-Day Clock Ticking). The next week the company announced no new drilling, anywhere, in 2016–hinting they might have to file for bankruptcy (see Warren Resources: Potential Bankruptcy, No Drilling in 2016). In March the New York Stock Exchange threatened to de-list Warren’s stock (see Pretty in Pink? Warren Resources Put on Notice for Stock Delisting). In April, the board changed the definition and role of the company’s CEO to become CRO–Chief Restructuring Officer–a sure sign of what was ahead (see Warren Resources Preps for Bankruptcy, New Role for CEO). Indeed, this one was pretty easy to predict. Last week Warren filed for Chapter 11 bankruptcy protection and has worked out a deal to transfer ownership of the company to two debt-holders: 82.5% of the company will now be owned by GSO Capital (owed $248 million), and the rest will go to Claren Road Asset Management (owed $57 million). Claren isn’t happy with the deal. Current/existing stockholders? They get zip. Wiped out. Screwed. That’s how it works in our great country–debt-holders get to take over and equity-holders (i.e. owners) get taken to the cleaners…
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NY AG Attempts to Cover Up His Collusion with Big Green Groups

NY AG Eric Schneiderman – the man who is hiding something

It’s A.O.K. for the out-of-control Attorney General from New York, Eric Schneiderman, to go fishing and request all sorts of internal documents and communications from Exxon Mobil in his witch hunt to persecute (not prosecute) the oil giant because they don’t believe strongly enough as he does in the fairy tale of man-made global warming. Schneiderman and his cronies in other states are trying to shake down Exxon in a massive scheme, claiming the company “knew” mankind is causing global warming by burning fossil fuels that Exxon extracts from the ground (see Climate Change Hucksters, Incl. NY AG & Al Gore, Threaten O&G and Rise of the New (Environmental) Nazis – Free Speech Under Attack). But when the U.S. Congress tells Scheiderman it wants HIS internal communication documents to see how he is colluding with Big Green groups who are prodding him along in his witch hunt efforts, Scheiderman clams up and claims Congress has no right to go fishing in HIS communications pond. Hmmm. A tad bit hypocritical, no?…
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Signs of Hope? Patterson-UTI Rig Count Drop Slows in May

Patterson-UTI logoAs we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Month by month Paterson’s rig count has declined over the past year plus. May was no different–although the good news is that the rate of decline slowed. Patterson reports operating an average of 53 rigs in May, versus 56 in April–a 5% drop…
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PennEast Opponents Complain They’ve Been Outsmarted by UGI

hypocrite.jpgIt’s always fun to point out just how hypocritical Big Green groups, like the Sierra Clubbers, actually are. The Sierra Club in New Jersey is all up in arms that utility company UGI has hired a former member of the Pennsylvania Public Utility Commission, Pamela Witmer, as vice president of government affairs. MDN was the first source to tell you the importance of her hiring, i.e. to help get the PennEast Pipeline approved (see UGI Hires PA PUC Commissioner in Brilliant Move for PennEast Pipe). The Sierra Club is “blasting” Witmer’s hire as “exactly what’s wrong with government and the incestuous relationship between utilities and corporations.” This is delicious. We will take you chapter and verse through two top Democrats in PA that have moved in and out, back and forth, between government jobs and jobs at Big Green organizations and corporations–Katie McGinty and John Hanger. The idiots at the Sierra Club make it too easy to point out their raging hypocrisy…
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PennFuture Bullies PA Town over Lack of Fracking Ordinance

PennFutureIn May 2015 MDN reported that after more than two years of acrimony and lawsuits between Range Resources and Mt. Pleasant (Washington County), PA., Range agreed to close four freshwater ponds (called “impoundments,” not to be confused with wastewater impoundments) the company was using to drill wells in nearby non-Mt. Pleasant locations (see Range Capitulates, Closing 4 Freshwater Ponds in Mt. Pleasant, PA). Mt. Pleasant is one of the original seven selfish towns that sued PA to overturn portions of the Act 13 oil and gas law. They won. Sooner or later a company can take a hint that a township is anti-business, so Range left town. Mt. Pleasant never followed up their victory in 2013 to fix a “hole” in their zoning ordinances. Not that it makes a whole lot of difference. MDN notices two permits issued in Mt. Pleasant Township in early 2015, and nothing since then, according to our Databook series. But the radicals at PennFuture have noticed. Even with little-to-no drilling, PennFuture is threatening to sue Mt. Pleasant unless they adopt far more restrictive ordinances on shale drilling in the town. Which points out PennFuture’s hypocrisy. It’s OK for a town to pass really restrictive zoning laws, but if the town chooses to not pass such laws, which is allowable under the Act 13 court case decision, that’s not OK by PennFuture. The door only swings one way for the radicals of PennFuture…
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Any Day Now PA House May Vote to Kill Article 78 Drilling Regs

PA HouseWe are close to the endgame with respect to Pennsylvania adopting onerous new drilling regulations rammed through by the former Secretary of the Dept. of Environmental Protection, John Quigley. MDN reported in April that the state’s Independent Regulatory Review Commission (IRRC) voted to approve the new regulations (see PA Drillers Lose Vote to Stop Onerous New Regs in Partisan 3-2 Vote). The only thing stopping the regs from becoming law is a vote by the full PA House and Senate, which would send the measure to Gov. Wolf who would, in all likelihood, veto the “no go” resolution. Then the House and Senate would need to vote to override Wolf’s veto. It is a game of political chicken. Wolf is already an unmitigated disaster in his first year as governor. Can he afford to have the legislature override a veto, making him look even weaker than he already looks? The House has until June 13, next Monday, to vote against these onerous new regulations. Then the Senate has either 10 legislative days, or 30 calendar days (whichever is longer) to vote. This is a real nail-biter!…
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Investment Firm Buying Talen Energy – PA Electric Generating Co

bigger fish smaller fishLast July MDN told you that Talen Energy, an electric generation company based in Allentown, PA, had cut a deal to acquire MACH Gen, LLC, the owner of three natural gas-fired electric generating plants (see Talen Energy Picks Up Gas-Fired Electric Plants – Marcellus in View). A couple of the plants are likely to use Marcellus/Utica Shale gas. In all, Talen has 16,000 megawatts of electric generating capacity in eight states across the country. Last week investment firm Riverstone Holdings made a $1.8 billion offer for Talen in a deal that would take the public Talen private. Riverstone already owns 35% of the company and the offer is for the other 65%…
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Good News for Marcellus: New Brunswick Commits Fracking Suicide

New Brunswick, Canada
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New Brunswick is a Canadian province that shares a border with the U.S. state of Maine. Since 2014 the brainiacs who run the province of New Brunswick have had a fracking moratorium in place–similar to what the State of New York had. Yep, you can see where this one is going. Last week those same brainiacs announced that the fracking moratorium in New Brunswick will go on “indefinitely.” Meaning it’s a ban, not a moratorium. The Canadian’s stupidity is a gift to the Marcellus/Utica because New Brunswick also shares a border with Nova Scotia and there are several LNG (liquefied natural gas) export facilities actively being planned. Those facilities will not get their gas from Nova Scotia or (now) from New Brunswick. The place those facilities will have to get their gas from is the Marcellus/Utica. So thanks, Canada!…
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Marcellus & Utica Shale Story Links: Mon, Jun 6, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: FERC prepares EIS for Gulf XPress pipeline; BlackRock takes big stake in Rex Energy; NY blocks two more pipelines; Lordstown Energy Center breaks ground today; Greenlight Capital reduces stock in CONSOL; another budget train wreck on the way in PA; New England blowhards blowing hot air re pipelines; and more!
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