Chesapeake Energy Lays off 200 Okla. Workers, Stock Slides More

Yesterday we told you that Chesapeake Energy’s reverse stock split (effective on Wednesday) of combining 200 shares into a single new share didn’t work out so well initially (see Chesapeake’s Reverse Stock Split Bombs, Company “On Life Support”). The company was on life support…now it’s amputative surgery. The company is laying off 200 employees in Oklahoma–half at its headquarters and the other half in the field.
Continue reading

Summit Midstream Doing Reverse Stock Split Following NYSE Warning

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin and the Permian. The company announced yesterday it has received notice from the New York Stock Exchange (NYSE) that its per-share price has fallen below $1 for at least 30 consecutive trading days.
Continue reading

Rig Count Plunges Another 74; M-U Count Steady as She Goes

In late March we told you about the biggest one-week drop in U.S. rig counts in the past four years when the rig count dropped by 47 in a single week (see Biggest Rig Count Drop in 4 Years – Who’s Still Drilling?). A week later we told you another 45 rigs had disappeared (see National Rig Count Falls Another 45, M-U Rig Count Holds Steady). And now, a neutron bomb. Over the past week (ending Wednesday) the U.S. rig count lost 74 (!) rigs. The week before the rig count “took a skydive” and went down 80 rigs. The rig count is in freefall without a parachute.
Continue reading

Pieridae Delays FID on Nova Scotia Goldboro LNG Export Project

For years we’ve had a Canadian LNG export project on our radar, bringing you news about the project, hoping that prodigious amounts of Marcellus/Utica gas would be used at the plant. The project is called the Goldboro LNG project, planned by Pieridae Energy for the coast of Nova Scotia. In July 2018 we told you Pieridae was getting close to a final investment decision (FID) to build the $10 billion project (see Canadian Goldboro LNG Inches Toward Final Investment Decision). The FID never happened, and now it will be delayed again, according to a statement released yesterday by Pieridae.
Continue reading

Investor Bails on Nova Scotia Bear Head LNG Export Project

LNG Limited (LNGL), based in Australia, has been working on a couple of North American LNG export projects over the past half-decade or more. One of them, called Bear Head, would be built in Nova Scotia, Canada and (potentially) export Marcellus/Utica molecules. The other, Magnolia LNG, would be located in Louisiana and yes, potentially export M-U molecules as well. LNGL was in the process of selling itself and its LNG projects to Singapore investor LNG9 PTE for $75 million. LNG9 has just canceled the deal, leaving the future both the Bear Head and Magnolia projects in question.
Continue reading

Oilfield Service Companies Hit Hard by Crash in Oil Price

While shale oil producers are suffering mightily during the current oil price crash, brought on by both the COVID-19 coronavirus travel restrictions and the Saudi price war, the oilfield services (OFS) companies that do all of the drilling and fracking for the oil producers are suffering even more. Companies like Schlumberger, Halliburton and Baker Hughes (among many others) are laying off employees and writing down billions of dollars worth of assets. On Monday Baker Hughes said it will write down $15 billion in value. While this carnage is not affecting the Marcellus/Utica per se, all of the aforementioned companies taking it on the chin in other plays also drill here in the M-U.
Continue reading

Shale Energy Stories of Interest: Fri, Apr 17, 2020

OTHER U.S. REGIONS: Natural gas plant construction causes concerns for Native American landowners; NATIONAL: Worry & appreciation…The energy workforce reacts to COVID-19; A wave of oil bankruptcies is on the way; Second-wave U.S. LNG projects stagnate amid market uncertainty; U.S. says oil tariffs still on the table even after OPEC+ deal; INTERNATIONAL: Saudi minister: ‘Not our intent to damage U.S. shale.’ Really?; Oil demand down nearly 30%, April worst month in 25 years: IEA; China is stocking up on cheap LNG.
Continue reading