Chesapeake Arranges $1.5B Loan to Pay Off Old Debt, Stock Soars

In an impressive feat of financial jiu-jitsu, Chesapeake Energy has just snapped closed the mouths of those who said the company was imminently heading for bankruptcy following the company’s third quarter update (see Chesapeake Energy 3Q – Slash Drilling 30%, Bankruptcy Possible). Yesterday Chessy issued three press releases to announce it has swapped out some of its old debt for 70 cents on the dollar, and has arranged a 4 1/2 year loan for $1.5 billion. Chesapeake stock soared 17% higher on the news.
Continue reading

Ohio Gov. Mike DeWine Meets with PTT re Cracker – Still No FID

PTT Ohio cracker site (click for larger version)

Near the end the year for the past 3-4 years we inevitably hear that PTT Global Chemical will not, as promised or implied, make a final investment decision (FID) about building a multi-billion dollar ethane cracker in Belmont County, Ohio, but that the FID will instead happen “next year.” Ohio Gov. Mike DeWine (RINO) met with PTT representatives yesterday to discuss the project. No announcements. No new promises. No FID announced. Another disappointment (cue George Michael song “Last Christmas”).
Continue reading

M-U Drillers Tell Pipeline Companies to Lower Fees, or Else

Today wraps up the Hart Energy Marcellus-Utica Midstream Conference being held in Pittsburgh. Unfortunately MDN editor Jim Willis could not attend this year. But Pittsburgh Business Times‘ ace reporter Paul Gough did attend, and he’s reporting some interesting comments at yesterday’s sessions. Pipeline companies offered frank and sobering comments. Times are not good for Marcellus/Utica drillers right now due to low low prices, and that translates into times being not good for pipeline companies too. But, “we’ve been here before” said one speaker, and better days are ahead…when prices once again increase.
Continue reading

Gov’t & Atlantic Coast Pipe File Briefs with U.S. Supreme Court

Dominion Energy’s Atlantic Coast Pipeline (ACP) previously filed a request with the U.S. Supreme Court to overturn a decision by the U.S. Court of Appeals for the Fourth Circuit that judicially creates a new law stipulating pipelines can’t cross under the Appalachian Trail without (no kidding) an Act of Congress. The Supremes get 8,000 such requests each year, and accept maybe 80 (or 1%). Lightning struck. The ACP case was accepted by the Supremes in October (see U.S. Supreme Court Agrees to Hear Atlantic Coast Pipeline Case). Briefs by ACP and the Trump administration were filed on Monday.
Continue reading

Rover, NEXUS NatGas Exports to Canada Currently “Maxed Out”

For some time we’ve been concerned about competition for Marcellus/Utica gas coming from western Canada being piped to Canada’s East Coast (see TC Energy Plan to Move Western Canadian Gas to East Coast Approved). TC Energy’s (formerly TransCanada) plan to haul gas over 1,000 miles across the continent at steeply discounted rates seemed like it was working (see TC Energy Cuts Rates 3rd Time to Sell W. Canada Gas to New England). Maybe we worried for nothing. S&P Global Platts is reporting Canada’s net imports of U.S. gas at the Dawn Hub have surged.
Continue reading

PA DEP Targeting NatGas Storage Operators Using Act 13 Law

In October MDN reported that Equitrans (formerly EQT Midstream) had settled an outstanding issue with the Pennsylvania Dept. of Environmental Protection (DEP) over the company’s failure to produce a “verified statement” that proves they have turned over every rock and branch looking for old conventional wells that are not mapped in a natural gas storage field in Greene County, PA (see PA DEP Fines Equitrans $650K for SWPA Gas Storage Field Violation). According to law firm Buchanan Ingersoll & Rooney, gas storage is “no longer under the radar” in PA.
Continue reading

FirstEnergy Loses OH Supreme Court Case to Block Referendum

The mafiosi at FirstEnergy lost their lawsuit filed with the Ohio Supreme Court in a bid to block a referendum aimed at giving all Ohio residents the right to vote to overturn an ill-conceived corporate welfare law passed that puts $1 billion into FirstEnergy’s pocket in order to keep two failing nuclear power plants open. Although they lost the case, FirstEnergy claims the Supreme Court decision is a “victory” for their attempt to keep their grubby hands on taxpayer’s money. How does that work?
Continue reading

Shale Energy Stories of Interest: Thu, Dec 5, 2019

MARCELLUS/UTICA REGION: PA EQB to consider regulations controlling methane emissions from existing oil & gas operations; Cracker plant workers, companies donate $40K to local charities; Center Township food pantry receives donation from pipeline company; Families to receive Toys for Tots; OTHER U.S. REGIONS: ExxonMobil moves Massachusetts AG’s “political” lawsuit to federal court; Rev. Jesse Jackson, activists push for natural gas pipeline to Pembroke Township; Colorado city extends moratorium on drilling permits; NATIONAL: Hedge funds pile into petroleum on rosier economic outlook; INTERNATIONAL: The world’s top 10 carbon dioxide emitters.
Continue reading