Gulfport Energy 1Q18: “We Love SCOOP” but Spends 70% on Utica

In April Gulfport Energy released an initial look at the company’s first quarter operations (see Gulfport 1Q18 Update: Utica Production Up 37%, SCOOP Up 198%). The April operational update did not include financial performance. Gulfport is an “independent” oil and gas driller with significant acreage positions in the Utica Shale of eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. Yesterday Gulfport dropped the other shoe–the financial report for 1Q18. The company reported $90 million of net income for 1Q18 vs. $154 million in 1Q17–a 42% drop. Much of the update focused on Gulfport’s activity in the Oklahoma SCOOP, which seems to have turned Gulfport’s head. However, there is continued strong activity in the Ohio Utica. Gulfport reports drilling 13 wells in the Utica in 1Q18 with an average lateral length of 9,000 feet (11% longer than 2017’s laterals). They averaged just over 1 billion cubic feet per day (Bcf/d) of production in the Utica. And Gulfport CEO Michael Moore said on an analyst conference call, in response to a question, that the company is still spending 70% of its capital budget on Utica drilling in 2018…
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Ohio EPA Continues to Hound 99% Done Rover Pipe re River Drilling

Rover Pipeline–a $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline–is about 99% done and as of last week, most of it is now up and running (see FERC Allows Rover Pipeline Startup in Michigan, Close to 100% Done). There are still a few spots being worked on, but very few. Even though the project is on the home stretch and will be 100% done by the end of June, Ohio EPA’s Craig Butler continues to hunt Rover like Captain Ahab hunted Moby-Dick. He can’t leave it alone. Obsessed. In February Captain Butler filed a letter with the Federal Energy Regulatory Commission (FERC) claiming that testing done by OEPA found the presence of very low levels of the toxic chemical tetrachloroethene (PCE) at Rover’s underground drilling site at the Tuscarawas River in southern Stark County (see Ohio EPA Continues to Target Rover Pipe in New FERC Letter). OEPA admits they can’t prove the very low levels of the compound actually came from Rover’s drilling activity–but hey, what’s proof got to do with it? Energy Transfer Partners, the company building Rover, responded by saying the PCE comes from sediment at the bottom of the long-polluted Tuscarawas River itself. On Tuesday OEPA filed another letter with FERC (full copy below) disagreeing with ET’s assessment, once again requesting FERC impose all sorts of requirements and conditions on the project–putting OEPA in charge of some of it (which is patently unconstitutional)…
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PA Agency Seeks to Force Drillers to Hire from State-Approved List

How do you prove you aren’t biased, racist, chauvinist, etc.? That is, how can you prove a negative? You can’t. But that doesn’t stop the radical left from trying to make you do it. Here’s another question: Where do you think The Almighty State forces companies to hire people from a state-approved list? In Russia? China? Perhaps Cuba? Nope. How about Pennsylvania. The Pennsylvania Department of General Services (DGS) wants to force down the throats of shale companies working in the state a requirement that they hire people who DGS, a dunderheaded government agency, says they should hire–or else. Or else what? Or else those companies get “audited” and found in violation and fined out the wazoo. DGS continues to beg state lawmakers to allow it to audit natural gas companies’ efforts to hire businesses owned by women, minorities and veterans. This is nothing new. DGS, and the antis who are stoking this effort, have been agitating for a Communist crackdown on shale hiring since 2012…
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Ohio Antis Suffer Big Election Defeats in Youngstown, Statewide

On Tuesday the voters in Ohio once again roared their disapproval of anti-fracking candidates, and anti-fracking ballot measures. For the seventh time in a row, a radical anti-fossil fuel ballot measure was voted down in Youngstown, OH–by an overwhelming majority (56%). Even so, the hardened radicals behind the ballot measure promise to keep bringing it back until Hades freezes over. These radicals have already cost the taxpayers of Youngstown $188,000 to run the ballot measure. And yet they keep coming back. They fit Einstein’s definition of insanity. Statewide voters shot down the candidacy of anti-fossil fueler Dennis Kucinich, the man who pledged that if elected governor he would institute a total ban on fracking statewide (see Ohio Democrat Candidate for Governor Says He’ll Ban Utica Drilling). Ohioans saw right through that nonsense. Only 23% of Ohio’s Democrats voted for Kucinich in Tuesday’s primary–a total humiliation…
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Shale Support Exclusive Frac Sand Supplier for NEPA Facility

Last September MDN told you that Shale Support Holdings, “a leading provider of frac sand and logistical solutions to the oil and gas proppant market” (headquartered in Texas, with an operations center in Mississippi), was stepping up its presence in the Marcellus/Utica region with a partnership with Tidewater Logistics (see Shale Support Holdings Expands M-U Frac Sand Business via Partnership). The partnership increases Shale Support’s operations in Ohio, Pennsylvania and West Virginia. Because Shale Support can ship sand direct from Mississippi, which is much closer than most other alternatives, the price for frac sand is cheaper for customers. Shale Support has just announced another important deal, to become the exclusive supplier for a major regional frac sand facility in Wysox (Bradford County), PA…
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Desperate Riverkeeper Files Multiple Lawsuits re PennEast Pipe

Knowing that the PennEast Pipeline project is about to become reality, a very desperate THE Delaware Riverkeeper (aka Maya van Rossum) has launched a major legal attack against the project–using Big Green money. These are not the first legal filings by Riverkeeper against PennEast. The current strategy appears to be “bury them in legal horse manure.” PennEast Pipeline is a 120-mile pipeline from near Wilkes-Barre, PA to near Trenton, NJ. The planned route passes through Luzerne, Carbon, Northampton, and Bucks counties in PA, and through Mercer and Hunterdon counties in NJ. The pipeline is needed to move PA’s abundant Marcellus gas to markets in NJ. The first “legal maneuver” by Riverkeeper this week was to file a petition for a “Writ of Mandamus” in the D.C. Circuit Court of Appeals, asking the court to force the Federal Energy Regulatory Commission (FERC) to respond to Riverkeeper’s rehearing request on the PennEast project. At the same time, Riverkeeper filed a “Petition for Review” with the D.C. Circuit Court of appeals challenging all of FERC’s orders related to PennEast. It is a full, frontal legal attack by a small organization fronting for other groups like the William Penn Foundation. The question is, will Riverkeeper’s latest attack work?…
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Goldboro LNG in Nova Scotia Negotiating Deal to Sell LNG to Europe

The Goldboro LNG export facility in Nova Scotia continues its march toward construction. As we reported in February, Pieridae Energy (the builder) has enlisted the help of Morgan Stanley and Société Générale to help raise $10 billion to build it (see Pieridae Energy Hires Morgan Stanley, SG to Help Fund Goldboro LNG). Last May, MDN told you that Pieridae Energy had signed a labor agreement to build the Goldboro LNG export facility along the shore of Nova Scotia, Canada (see Update on Goldboro LNG – Labor Agreement Signed to Build). The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016, an indication that Marcellus/Utica gas may flow to the plant (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). If the gas to feed the new export facility does come from the Marcellus/Utica, it will come via the Maritimes & Northeast Pipeline. However, Goldboro can also source gas from TransCanada’s pipeline system, from Western Canada. We remain hopeful that M-U gas will be the preferred feedstock. There is new news to report on this project. Pieridae announced earlier this week they are in the midst of negotiating a 10-year contract with a “European utility” to purchase up to 1 million tonnes per year of LNG…
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Other Energy Stories of Interest: Thu, May 10, 2018

The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: FERC’s Chatterjee expresses concerns over NY blocking pipelines; SWPA water authority using Marcellus tech to install water pipes; Shell cracker causing delays for other local construction projects; ODNR OKs two new Utica wells in Columbiana County last week; yet another NY town voting to ban solar farms; state regulators imperil energy infrastructure projects; can shale producers keep up with demand?; Trump’s Iran decision continues his efforts to reverse horrible Obama energy policies; how green is my planet?; and more!
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