Chesapeake Survival Mode: Sell $500M Assets, Reverse Stock Split

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The future for Chesapeake Energy is, according to some, in serious doubt. Yesterday CEO Doug Lawler unveiled his strategy for keeping the company afloat. His strategy is to sell up to $500 million worth of “non-core” shale assets (in a down market, flooded with shale assets), and do a reverse stock split. Lawler’s plan and the company’s 2019 annual update spooked investors and Chessy’s share price collapsed down to $0.31/share (down even more this morning)–the lowest it has EVER been since the company went public in 1993. With some $9 billion in debt hanging around its neck, the company faces a big challenge in staying out of bankruptcy court.
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Top 11 Shale Drillers in Pennsylvania by # of Wells Drilled

One of our favorite publications to read is the Pittsburgh Business Times. The PBT recently researched and published a list of the “Largest Shale Gas Drillers in Pennsylvania.” It’s a really great list and resource–listing 40 shale drillers with details including how many wells they’ve drilled total (all time) in the state, how many wells drilled in 2019, company HQ info and a few other details. We’ve extracted the names and a few details for the top 11 drillers.
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PA, Feds on Witch Hunt to Make Revolution Pipe Accident a Crime

Pennsylvania Attorney General Josh Shapiro, a leftist Democrat who wants to succeed Tom Wolf as governor, likes to investigate accidents related to the shale industry to see if he can turn them into crimes (see our lengthy list of stories here). Add one more to the list: Since last year Shapiro has been investigating the Revolution Pipeline blast in western PA for potential crimes. He now has company.
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IFO: PA Natural Gas Production Hits New All-Time High in 4Q19

Yesterday the Pennsylvania Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for October through December 2019 (full copy below). It shows natgas production in PA rose 7.6% compared to the same period last year–to yet another new all-time high of 1,774.5 billion cubic feet (Bcf) of natural gas. Put another way, that’s nearly 1.8 TRILLION cubic feet of gas produced over a three-month period. There has now been an unbroken chain of quarter-over-quarter increases in horizontal shale gas production in PA for 14 consecutive quarters (3.5 years running).
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CNX CEO Blasts Anti-Fossil Fuel “Elites” in Pittsburgh Speech

Nick DeIuliis, CEO of CNX Resources, has about had it up to “here” with the haters. At a recent speech to the Pittsburgh Rotary Club and the Pittsburgh Business Exchange, DeIuliis unloaded on extremists (whom he called “haters”) targeting the shale and petrochemical industries. He made a strong case for fossil fuel energy. He’s also not a fan of the “carbon-shaming mob mentality” of some leftist fund managers who are pressuring investment firms to divest from fossil fuel companies. Way to go Nick!
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Shale Energy Stories of Interest: Thu, Feb 27, 2020

MARCELLUS/UTICA REGION: ODNR issues 8 Utica drilling permits; PA Chamber expresses dismay over canceled Constitution Pipeline Project; NATIONAL: Analysts slash 2020 natural gas price forecast; The oil and gas situation: time for alarm has arrived; BP withdraws from industry groups, citing climate disagreements; Activist group rewards its favorite reporters; Feed supplement for dairy cows cuts their methane emissions from belching by about a quarter; Wind has surpassed hydro as most-used renewable electricity generation source in U.S.; Sagging supply and rising demand for Jones Act ships to send rates higher; INTERNATIONAL: New Fortress Energy progresses Mexican LNG terminal construction; U.S. and India to promote energy ties, say Trump and Modi; Japan will remain a key market for U.S. LNG.
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