Former EV Energy Partners Looks to Sell or Merge Remaining Assets

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In June 2018, EV Energy Partners (EVEP), the drilling subsidiary of EnerVest, emerged from bankruptcy court a mere two months after entering with $355 million of debt erased and sporting a new name: Harvest Oil & Gas Corp. (see EV Energy Partners Emerges from Bankruptcy with New Name). Harvest’s drilling and assets are focused in Ohio, Pennsylvania, West Virginia, where they own/operate 9,787 conventional wells. (The company cut a deal in March to sell off all of its Michigan assets.) In a fourth-quarter (everyone else’s first quarter) and full-year update released yesterday, Harvest announced it is “actively considering the potential divestiture of all of its remaining assets as well as a potential sale or merger of the Company.”
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WV Gas-Fired Elec Plant Gets Approved, Parent Files for Bankruptcy

Longview Energy Center concept (click for larger version)

Last September Longview Power filed an application with the West Virginia Public Service Commission (PSC) to build and operate a Marcellus gas-fired electric generating facility in Monongalia County, WV, near Morgantown (see 1200 MW Gas-Fired Power Plant Files to Build in Mon County, WV). The Longview Power Clean Energy Center will include a 1,200 megawatt combined cycle power plant AND a 70 megawatt solar farm–both built next to Longview’s existing state-of-the-art 710 megawatt coal-fired power plant. The PSC approved and issued permits for the project in early April. A week later Longview (the parent, not the gas-fired plant subsidiary project) filed for a “prepackaged” Chapter 11 bankruptcy.
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PA DEP Fines Range Resources $199K for Air Permit Violations

The Pennsylvania Dept. of Environmental Protection (DEP) has reached an agreement with Range Resources that forces Range to pay $198,920 in fines for violations of state regulations and the Air Pollution Control Act–violations that happened in 2013, 2014, and 2015. Our reading is that most of the violations revolve around Range not filing the right paperwork.
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Rep. Metcalfe Tells PA DEP Stick to Knitting During COVID-19

A lot of things have changed over the past month since COVID-19 coronavirus lockdowns were instituted in many states, including New York and Pennsylvania. Some sleazy politicians, like Andrew Cuomo and the far-left Democrats in the New York State legislature, took advantage of the crisis to pass damaging legislation while no one paid attention (see Cuomo PERMANENTLY Bans NY Fracking in Now-Adopted Budget). NY is not the only state to make mischief during the crisis. It seems the PA Dept. of Environmental Protection (DEP) is also making mischief, trying to advance Gov. Wolf’s illegal attempt to force the state to join the so-called Regional Greenhouse Gas Initiative (RGGI), a carbon tax on gas-fired power plants.
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The “Upside” for Marcellus/Utica in the Oil Price Crash

We’ve previously brought you various articles, and comments on articles, describing how Marcellus/Utica drillers may benefit from the current crash in global oil prices. How? A number of oil drillers in Texas, Oklahoma, North Dakota and other oil states are not only not drilling new wells right now, but they’re also not completing previously drilled wells and in some cases, they are shutting in existing/flowing wells. All of which means there will be a rapid decline in the amount of “associated gas” being produced in those states. Less associated gas means less supply and less supply means higher prices–for M-U drillers. We spotted an article that does a good job at defining how this will likely play out. How much less associated gas can we expect? What does that mean for natgas prices (when will they go higher)? What if the price of oil is $40/barrel rather than $30/barrel?
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Shale Energy Stories of Interest: Wed, Apr 15, 2020

MARCELLUS/UTICA REGION: Victor Furman: I will never be silent about our rights; Hannaford bans reusable bags; OTHER REGIONS: Texas considers mandating oil companies reduce supply to combat crashing prices; Shale billionaire Harold Hamm sees Oklahoma limiting oil output; NATIONAL: Baker Hughes reduces capex by 20%, expects $15B impairment in 1Q; Oil in the age of coronavirus: a U.S. shale bust like no other; EagleClaw Midstream joins ONE Future coalition; API welcomes OPEC+ agreement; North America’s oil industry is shutting off the spigot; INTERNATIONAL: Saudi Prince: Not trying to put U.S. shale out of business.
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