Dominion Energy Sells 25% of Cove Point LNG for $2B

Yesterday Dominion Energy announced it has sold a 25% stake in the completed Cove Point, Maryland LNG export facility to Brookfield Asset Management for a cool $2 billion. Dominion completed the $4.1 billion facility in 2018. The share just sold to Brookfield values the facility at $8.22 billion. Holy smokes! Nice play–to double the value of your investment in not much more than a year after completing it. What will Dominion do with all that cash?
Continue reading

Range Sells Another 0.5% Royalty Interest for $150M

In July MDN brought you the news that Range Resources had sold a 2% overriding royalty interest on 350,000 acres “in southwest Appalachia” for $600 million (see Range Resources Sells 2% Royalty Interest + 20K Acres for $634M). Range’s announcement did not identify who, exactly, was the company doing the purchasing. Lime Rock Resources later self-identified as the buyer (see Mystery Solved: Lime Rock Buyer of 2% Royalty Interest in Range). Range has just done it again–sold off another 0.5% (one-half of one percent) of an overriding royalty interest for another $150 million.
Continue reading

US DOT Gets Serious About LNG by Rail – Publishes Proposed Rules

In April President Trump issued an Executive Order (EO) directing the Secretary of Transportation to write a new rule allowing specially constructed tanker cars for railroads (DOT-113 tank cars) to ship LNG, i.e., liquefied natural gas (see Here Come the “Bomb Trains” – Trump to Allow LNG by Rail). The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), has just issued a “Notice of Proposed Rulemaking” to move the process forward. Think of it as draft regulations to allow LNG by rail car.
Continue reading

Americans Have Saved an Amazing $1.1 Trillion Thx to M-U NatGas

Natural gas end-users, which include American households, businesses, manufacturers, and electric power generators, have realized $1.1 trillion in savings since 2008 as a result of increased natural gas production in the Marcellus/Utica region, according to a new report released yesterday. You read that right! Folks across the country have benefited by using M-U gas to the tune of $1.1 trillion in savings. Astonishing! The new report (full copy below) says the total savings works out to be an average of $4,000 per household. Thank God for fracking and horizontal drilling in the Marcellus/Utica.
Continue reading

Why Wolf’s Regional Greenhouse Gas Initiative is Disaster for PA

Earlier this month Pennsylvania Gov. Tom Wolf went completely off his rocker with a power-grab to force PA into a regional alliance to tax natural gas-fired electric plants out of existence (see Gov. Wolf Goes Bonkers: EO Destroying Gas-Fired Elec, Carbon Tax). The reaction was swift–on both sides of the issue (see Reaction to Gov. Wolf’s Bonkers Plan to Strangle NatGas Elec Plants). Following up, the Allegheny Institute for Public Policy has issued an analysis that exposes why joining the tax alliance is the wrong move for PA. And the Blank Rome law firm explains why joining the alliance is not likely to happen.
Continue reading

WSJ Editorial Board Blasts NY Gov. Cuomo for Bullying National Grid

A recent editorial written by the editors of the Wall Street Journal begins with this superb sentence: “New York Governor Andrew Cuomo has a habit of bullying others to cover for and fix his policy blunders.” It goes on to rip Cuomo to shreds for his bullying of National Grid, forcing the company to add new natural gas customers against its wishes because come wintertime, they may not have enough gas to service all customers in the Greater New York City/Long Island region. Why a moratorium on new customers? Because Cuomo denied National Grid a pipeline to supply the gas they need–the Northeast Supply Enhancement (NESE) pipeline.
Continue reading