Range Resources Loses $225M in 2Q16, Marcellus Production Up 16%

Range ResourcesRange Resources, one of the largest (and the very first) Marcellus Shale drillers, issued their second quarter 2016 update yesterday. While there was plenty of good news Range highlighted at the beginning of the release–Marcellus production was up 16% year over year at 1.379 billion cubic feet per day, costs were down 8%, total debt as low as it’s been since 2012–there was no getting over the 800-pound gorilla in the room: Range lost $225 million for the quarter in 2Q16, versus losing $119 million in 2Q15. One of the things Range seems most jazzed about is buying Memorial Resource Development Corp. and drilling in Louisiana instead of the Marcellus (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). CEO Jeff Ventura did mention the company can quickly ramp up drilling on 200 well pads in the Marcellus when/if the time is right. Below is Range’s 2Q16 update, along with a copy of their latest PowerPoint presentation, with lots of interesting slides…
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CONSOL Energy to Restart Drilling in August – Mainly in Utica

CONSOL EnergyThe parade of quarterly updates continues. Yesterday CONSOL Energy, once one of the largest coal companies in the U.S., now one of the largest independent drillers in the Marcellus and Utica Shale, issued their update. And in interesting one it is. After having idled its rigs, CONSOL reports they will begin a “modest” drilling program once again in August. However, the strategy is shifting. CONSOL plans to drill eight new Utica wells (in Monroe County, OH) and only two new Marcellus wells (in Washington County, PA). CONSOL will own 100% of the Utica wells but only has a 50% working interest in the Marcellus wells–which may be the biggest reason why they are focusing on the Utica for now. Also in the update: CONSOL’s natgas production jumped 32% in 2Q16 over 2Q15. The big financial news is that CONSOL lost $470 million in 2Q16, but that’s an improvement over 2Q15 when the company lost $603 million. Revenue dropped almost in half–from $545 million in 2Q15 to $286 million in 2Q16. Yesterday’s comprehensive update contains breakdowns of production by shale play, details on a 10-well “plugless” completion, and much more. We’ve also tracked down and embedded CONSOL’s latest PowerPoint presentation…
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Pot Shot: PennEast Partner Seeks to Stop New England Pipeline

friendly fireIn September 2014, PSEG (Public Service Enterprise Group) Power–New Jersey’s largest utility company–became the fifth company to become a partner in the much-needed PennEast Pipeline, the $1 billion pipeline project that would flow cheap, abundant and clean-burning Marcellus Shale gas from northeast Pennsylvania all the way to Trenton, New Jersey (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). You know the travails PennEast has had in trying to get the project approved. Nutjobs like THE Delaware Riverkeeper, funded by the William Penn Foundation, Heinz Endowments and others, has continually harassed and sued PennEast. One of Riverkeeper’s favorite tactics is to write gajillions of letters to the Federal Energy Regulatory Commission telling FERC that PennEast isn’t needed and isn’t wanted. So we found it a tad hypocritical to read that PSEG Power has turned around and filed their own letter with FERC–telling FERC another pipeline project, Spectra Energy’s much-needed Access Northeast pipeline which will bring more Marcellus gas to New England, isn’t needed and isn’t wanted…
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NY & MA AGs Refuse to Comply with Congressional Supeona

lawlessThe lawless Attorney General in New York, Eric Schneiderman, and his philosophical twin in Massachusetts, AG Maura Healey, are refusing to obey a subpoena issued by Congress for copies of their communication records that would show the two (along with other AGs) have been unethically (perhaps illegally) colluding with Big Green groups in targeting Exxon Mobil over the issue of so-called global warming. As MDN previously reported, Schneiderman, Healey and several other far-left radicals made fantastical claims that Exxon “knew” that burning their evil, filthy, nasty oil and natural gas is causing Mom Earth to warm up, so the AGs served subpoenas to Exxon to turn over every piece of communication the company has ever had. Why? So the AGs could try to build a case against Exxon’s expression of free speech (see NY AG Targets/Accuses ExxonMobil of Lying about ‘Climate Change’). Interestingly, Schneiderman, Healey and others in this cabal were suspected, now with proof, that they’ve been colluding with each other and with radical Big Green groups in their witch hunt of Exxon (see Smoking Gun: AGs Signed Pact to Keep Exxon Documents Secret). So Congress went on a little fishing expedition of its own, issuing subpoenas to Scheiderman et al (see NY AG, Others Served Congressional Subpoena re Exxon Witch Hunt). Schneiderman and Healey are officially refusing to obey the subpeona. Hey psycho AGs: Exxon has every right to refuse YOUR subpoenas too! Sauce for the goose…
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Group of Protesting/Ignorant Kids Briefly Block Philly Refinery

Barter_Children_ppc_08.inddA small group of ignorant children (look the photo) preened and pretended to actually know something when they marched outside of the Philadelphia Energy Solutions (PES) refinery in South Philly where PES would like to expand by leasing an extra 200 acres at the Southport facility. The children blocked traffic causing a backup, making drivers unhappy. The kids also prevented trucks from entering and exiting the facility–for about 10 minutes. Philly police watched and did nothing. Sycophantic media (StateImpact) claimed there were “around 100” but a picture of the event shows nine (that we can see), none of whom appear to be old enough to drink beer. PES is pushing the concept of making Philadelphia an “energy hub” and they (PES) want to ship Marcellus Shale gas from the Southport facility location after piping it there from other parts of PA. A number of people are bidding on the property and it’s not at all a foregone conclusion that PES will get it (see Marcellus Caught in Crossfire of Philly Port Leasing Controversy). Apparently the subtleties of who may one day lease and operate the site were completely lost on the ignorant kids running around behaving badly…
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FERC Grants Williams Constitution Pipeline a 2-Year Extension

FERC logoAs we reported yesterday, last Friday Williams and the Constitution Pipeline filed a request with the Federal Energy Regulatory Commission (FERC) to extend their application to build the Constitution Pipeline from Susquehanna County, PA to Schoharie County, NY (see Constitution Pipeline Requests 2-Year Extension from FERC). New York’s corrupt governor, Andrew Cuomo, is trying to stop the project (apparently his hands didn’t get greased enough). It didn’t take long. FERC granted Constitution’s request yesterday…
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FERC Grants Dominion Clarington Project a 1-Year Extension

FERC logoIn June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. Last August, FERC approved Dominion’s request (see FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group). FERC gave Dominion a year to complete the project, but Dominion filed a request last Friday requesting more time. FERC agreed and has extended the project completion date an extra year…
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What can a PA Oil & Gas Equipment Auction Tell Us?

auction-gavel.jpgMDN editor Jim Willis grew up going to auctions. Sometimes it was a farm auction–equipment like tractors and balers and manure spreaders. Sometimes a livestock auction–cows and horses and pigs and goats. But most often it was attending the local bric-a-brac auction on Saturday nights in South New Berlin (NY)–at Toby’s Auction Center. If we close our eyes and imagine it, we can still “see” the sights and sounds (and smells!) of the auction, where everything from cassette players to zucchini squash to antique Japanese pottery was sold. You can tell a lot about economic conditions from the local auction–including equipment auctions in the oil and gas industry. At a recent o&g equipment auction in Indiana County, PA, a couple of things were apparent: (1) the conventional drilling industry in PA, NY and elsewhere is struggling, and (2) it’s still a buyer’s market for drilling equipment–which indicates the turnaround hasn’t arrived quite yet…
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Marcellus & Utica Shale Story Links: Wed, Jul 27, 2016

best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Northeast gas vs. Gulf Coast gas; NY solar project wants to cut down 350 acres of trees!; OH rig count up to 16; Democrats don’t like natgas anymore; O&G companies are survivors; headwinds for natgas prices; and more!
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