Seventy Seven Energy 3Q16: Post-Bankruptcy, Still Losing $

SSE logoIn August MDN reported that oilfield services company Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, had popped out of bankruptcy in record time–just two months after declaring bankruptcy (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). The bankruptcy reduced more than $1 billion worth of debt by waving a magic wand and turning debt into equity (shares of stock)–hosing existing stockholders. SSE’s second quarter report reflects the pre-bankrupt company and showed they lost $84.5 million in 2Q16, compared to losing $74.7 million in 2Q15 (see Seventy Seven Energy 2Q16: Shed $1B Debt, Lost $84.5M). SSE has just released their 3Q16 update, which is the first update since they magically wiped away $1 billion in debt. What does it show? It’s complicated, since there is the pre-bankrupt financials and post-bankrupt financials. The bottom line is that the company is still losing money. If you look at just the two months since emerging from Chapter 11, SSE lost another $36.5 million. The company reports they currently have 29 rigs operating with another 22 rigs under contract…
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FERC Delays PennEast Pipeline Final Review – Again

delayedBack in April the Federal Energy Regulatory Commission (FERC) told PennEast they would extend the amount of time they are taking until December of this year, rather than this past August, to complete their Environmental Review (see PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?). PennEast is a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. PennEast tried to spin the news as a positive. We took it as mildly bad news. On Tuesday FERC once again told PennEast they are moving the goal posts–delaying the final Environmental Review from December to next February. Once again, we don’t think this is good news. The longer final approval (and construction) are delayed, the more likely anti-fossil fuel zealots will new ways to try and kill the project, which is their aim…
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Utica Drillers Using Managed Pressure Drilling (MPD)

mpd
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This post is far (far) more technical than the typical post on MDN. It is aimed at those in the drilling business. However, a general understanding will help everyone interested in what’s happening in the Utica Shale. We spotted a story that claims MPD–or managed pressure drilling–is emerging as the “preferred” drilling method in the Utica Shale. The article is written by engineers who work for Weatherford, the world’s fourth largest oilfield services company (and a company with major customers/operations in the Utica, i.e. a vested interest). The first, most obvious question is: What in the world is MPD? We went looking for a layman’s definition. The simplest definition we found was, “cheating Mother Nature.” MDP involves managing the pressure in the well, and drilling mud…
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CT NatGas-Fired Power Plant Approved, Where Will it Get the Gas?

psegLast week a plan to build a $550 million natural gas-fired electric generating plant in the city of Bridgeport, CT was approved by city zoning officials. PSEG Power Connecticut currently operates a coal-fired plant in the same location and wants to build a 485-megawatt facility at the same address. The only remaining obstacle is an air permit from CT environmental protection officials, which is expected to be issued early next year. Once the air permit is in hand, PSEG plans to begin construction. Our question is, with no extra pipeline capacity serving New England, where will they get the gas to power the plant?…
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Berkshire Gas (Mass.) Searches for Solutions to Get More NatGas

PrintIn December 2014 the Massachusetts-based utility Berkshire Gas Company announced the amount of natural gas they could purchase from the Tennessee Gas Pipeline (TGP) was at full capacity. There’s no additional gas supplies to buy–unless TGP builds their Northeast Energy Direct (NED) expansion project. So Berkshire was forced to tell new customers for natural gas in portions of Franklin County they won’t be able to tap into Berkshire’s line (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). In January 2016, Berkshire had to expand the prohibition area, turning down new businesses in neighboring Hampshire County (see Shortages Begin: Tangible Result of No Pipelines in New England). In April came the devastating news that TGP was canceling the NED pipeline project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). What can Berkshire Gas do? Where can they turn now? Is there ANY hope that new residences and businesses in Franklin and Hampshire counties can hook up to natural gas? Berkshire is having to deal with the crappy hand dealt them. They are trying to find a way to get more gas supplies for their customers. They have a plan to build a short, 19-mile pipeline to deliver new supplies. Predictably, the idiots living in the affected areas are resisting the plan…
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Technip & FMC Technologies Shareholders Vote Dec 5 on Merger

M&AIn May, U.S.-based oilfield services company FMC Technologies announced they will merge with their much larger quasi-competitor, France-based Technip, in an all-stock deal that will create a new company called TechnipFMC worth $13 billion (see FMC Technologies & Technip to Merge, Create $13B Oilfield Giant). FMC had/has some operations in the Marcellus/Utica, hence the merger has implications for our region. The Obama Dept. of Justice approved the deal in June (see FMC Technologies/Technip Merger Approved by Obama DOJ/FTC). Apparently it’s A.O.K. for a French company to buy an American company, but when one American company (Halliburton) wanted to buy another (Baker Hughes), that wasn’t OK with the Obamadroids (see (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). But we digress. On Dec. 5 shareholders in both companies will vote on the deal. If they vote “yes,” as it expected, the deal with close and the two will have their nuptials in early 2017…
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Ohio DMA Decision Explained at December Seminar in Columbus

Gavel-falling.jpgMDN has highlighted the importance of the Ohio Supreme Court’s decision with regard to the Ohio Dormant Mineral Act (DMA). In September the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). We later ran a copy of an analysis done by attorney David Wigham, who said, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed” (see Expert Says OH DMA Decision “Significantly Changed” Mineral Rights). An MDN subscriber from a major Ohio driller reached out to editor Jim Willis to ask for help in promoting an event being hosted by the Energy & Mineral Law Foundation for lawyers on the topic of the recent DMA decision. We are happy to do so given the importance of the decision and its profound effect on both drillers and landowners in the Buckeye State. Here’s the lowdown on the Ohio Dormant Mineral Act Special Institute, Dec. 12 in Columbus, OH…
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Global Warming Hoaxers Have a Cow over Trump Victory

trump-winsAs soon as Donald Trump secured victory in Tuesday’s presidential election, the hew and cry went up from radical environmentalists that his election spells the end of Mom Earth. Trump is rightly skeptical of claims that mankind is causing a catastrophic warming of the earth–namely because there’s no evidence to support it. No objective “average” temperature data that shows the earth warming up by burning fossil fuels, as is the claim. But global warmers, who have changed their name to climate changers, won’t listen to reason. Their belief in man-made global warming surpasses the fervency of belief by most people in a Supreme Being (i.e. God). Global warming is their religion, and no amount of discourse and debate will convince them otherwise. So when Trump, a “climate denier” as they call him, won–it was for them a disaster. Barack Hussein Obama has been the warmers’ best friend. But there’s a problem with the way Obama achieved his environmental agenda–he did it by fiat. By executive orders. By using executive branch agencies like the EPA and BLM and others to implement his wishes apart from having those wishes enacted in legislation. And what one president can do with executive orders, another can undo with executive orders. Obama’s entire environmental agenda is built on sand–a house of cards. And it’s about to gloriously come crashing down with President Trump. And that fact has warmers sweating…
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Will Charif Souki Renounce His American Citizenship?

soukiAs we pointed out to you last December, evil corporate raider Carl Icahn (invests in companies so he can fire a bunch of people, boost the stock and pocket the profit) had fired Cheniere Energy CEO Charif Souki (see Evil Corporate Raider Carl Icahn Claims Another CEO Scalp). He later admitted it on CNBC (see Corp Raider Carl Icahn Admits He Fired Cheniere CEO Charif Souki). Souki hasn’t let it slow him down. He started a new LNG export company to compete with his old company (see Revenge: Fired Cheniere CEO Starts Competing LNG Company). We kind of had (past tense) a soft spot for Souki, getting tossed from the company he started. But then we read comments he made about Donald Trump two weeks ago. Souki thought (like many) that Trump had no chance of winning, but if he did, Souki said he would “reconsider my nationality.” He was born in Egypt but is an American citizen now. After Trump’s victory, Souki seems to have forgotten about his threat to leave the country and change his citizenship. Can anybody say “two-faced”?…
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Marcellus & Utica Shale Story Links: Thu, Nov 10, 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: Vallourec reports $176M loss; EQT takes smart tech for a spin; President Trump will make Amercian energy great again; fracking played major role in election; investors snap up $28B in U.S. drillers; global shale lurking; and more!
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