Halliburton 3Q16 Earnings Surprise: Turns a Profit!

happy-daysHalliburton kicked off the third quarter earnings season yesterday with some stunning news: the company actually turned a profit during 3Q16! It wasn’t much of a profit–just $7 million. But that comes after losing $3.2 billion during 2Q16. Engineering a turnaround like that is nothing short of miraculous. North America represents 40% of Halliburton’s revenue–the company made $1.7 billion in 3Q16, a 9% increase over 2Q16. The rest of the world (international) represents 60% of Halliburton’s revenue, which was $2.2 billion in 3Q16 (up 6% over 2Q16). The company predicted 4Q16 revenues will be flat. But hey, after billion dollar loses, who cares? CEO Dave Lesar once again reiterated his view that “things are getting better” for the oil and gas industry. A $3.2 billion turnaround in one quarter is a whole lotta proof to back up his assertion. However, company officials also said Halliburton remains in a pricing “barroom brawl” with competitors, and the oil market in particular remains “very challenging.” Here’s the Halli update…
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Vantage Energy is No More – Rice Energy Completes $2.7B Buyout

Rice EnergyJust two months ago Rice Energy announced they are buying competitor Vantage Energy for $2.7 billion (see Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres). Included in the deal are 85,000 acres of Marcellus leases in Greene County, PA, the primary reason for the deal (see Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…). Also included, another 52,000 acres of Utica Shale leases. Yesterday Rice announced that the deal is done and dusted–Vantage Energy is no more. Rice now controls some 231,000 net acres in the Marcellus and Ohio Utica Shale “core” areas, with an inventory of 1,164 drilling locations. Very impressive for a company that didn’t exist 10 years ago…
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Work Begins on $40M Electric Substation in W PA to Help Marcellus

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Work Underway on New FirstEnergy Transmission Substation to Support Western Pennsylvania Shale Gas Industry – click for larger version

FirstEnergy Corp., an electric generating and distribution company based in Akron, OH, is blessed to have operations squarely in the Marcellus/Utica region. FirstEnergy has been an important (and valued) partner for the drilling and pipeline industry by providing electric service to a number of processing plants and compressor stations (see our FirstEnergy stories here). Yesterday FirstEnergy announced they have begun construction on an electric transmission substation in western PA (Washington County). The $40 million project will “support two natural gas processing facilities being developed in the area.” Who do the processing facilities belong to that will benefit from more electricity?…
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Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?

enviro naziThe Dakota Access Pipeline Project (DAPL) is a new approximately 1,172-mile, 30-inch diameter oil pipeline that will connect the expanding Bakken and Three Forks production areas in North Dakota to Patoka, Illinois. Although the pipeline has become the new Keystone XL complete with anti-fossil fuel lunatics protesting it, MDN has largely ignored it because it’s another battle in another geography and we’re fighting enough of our own battles. We try to cover news that directly affects the shale industry in the northeast. Except now the Dakota battle has become connected to our own battles here in the northeast. Let us explain…
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“Protect Our Pennsylvania” Group Opposes Pipeline Eminent Domain

fish-rotsA new group called Protect Our Pennsylvania launched on Tuesday at a rally in Harrisburg–at the State Capitol. The purpose of the group is to oppose and reign in the currently legal right of pipeline companies to use eminent domain to force landowners to accept a pipeline across their land. This is a tough issue for us. We have often stated this philosophy: I won’t tell you that you must allow drilling, or a pipeline, and you don’t tell me I can’t allow it. We think that’s a consistent and fair philosophy. But what do you do with a pipeline when only one or two people are blocking its route? We’ve always said, make it worth their while to allow (pay them). We’ve also said there may be times when eminent domain must (very reluctantly) be used. It is an ongoing “wisdom of Solomon” kind of issue for us, with no clear answer. So is this new group, Protect Our Pennsylvania, a group of landowners honestly concerned about their property rights? Alas, we don’t think so. Their leader, Eric Friedman, has ties to the radical Sierra Club, which means this is just one more organization pretending to be something it is not. It is, we are convinced, populated with anti-fossil fuelers and not just mom and pop landowners…
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Poll: Virginians Favor Atlantic Coast Pipeline by 2-to-1

opinion-poll.jpgSo often very small, loud-mouthed antis appear to be winning the battle that we sometimes forget about the silent majority. Case in point: In reading the typical mainstream media story about Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–you would assume the project is reviled and opposed by “everyone” and doomed to failure. But reality if far different from the false picture painted by the media. A poll conducted recently by the Tarrance Group for the Virginia Chamber of Commerce of Virginia residents shows that by a nearly 2-to-1 margin, Virginians support the Atlantic Coast Pipeline project. That would be a “landslide victory” if it were an election…
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NY NatGas Power Generators Sue State over Nuclear Subsidy

lawsuitNew York Governor Andrew Cuomo, like many liberal Democrats, loves to pick winners and losers. Recently Cuomo launched an “ambitious” new Clean Energy Standard in which he puts his bets on nuclear energy. That is, he’s willing to transfer billions of New Yorker’s hard-earned taxpayer dollars out of their pockets and into the pockets of nuclear power companies. Why? In order to prop them up, make them “competitive” with much cheaper natural gas-powered electric plants. That is, Cuomo cheats. He wants to stack the deck. And New York’s natgas power generators are not having it. They’ve sued the state, challenging the Clean Energy Standard that steals money out of our pockets in order to prop up nuclear companies, all using the excuse of “global warming”…
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EPA Chief Won’t Talk to “Climate Deniers” Who Disagree with Her

shunnedThe uber-arrogant Gina McCarthy, Administrator/Dictator of the federal Environmental Protection Agency, has a message for those of us who don’t believe in man-made global warming: drop dead. If you happen to disagree with Gina, don’t bother phoning her up or stopping her someplace on K Street to have a discussion about it, because she’s “not talking to climate deniers” any more. She thinks we’re part of the Flat Earth Society for not adhering to her climate orthodoxy. Gee Gina, I’m so hurt…
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Marcellus & Utica Shale Story Links: Thu, Oct 20, 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: Anti-frack ballot measures in OH; PA Senate resolves to review enviro laws; Aussies go walk about in Clearfield, PA; America a better swing producer than Saudis; shale will pressure oil price “for years” says Exxon; Carnegie Mellon study says natgas good for health; and more!
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