Antero Slashes Budget, Maintains Production, Stock Rockets 21%

Antero Resources issued its first-quarter 2020 update yesterday, delivering outstanding earnings guidance that “completely caught Wall Street and the bears off guard.” Management cut 2020 capex by $250 million, to $750 million (41% lower than 2019) while maintaining current production. Antero said it will hit $175 million free cash flow *this year* by spending less and producing the same.
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Gulfport Energy Swallows a Poison Pill to Prevent Hostile Takeover

Like Chesapeake Energy last week and Williams in late March, the Gulfport Energy board has decided to swallow a poison pill. Some companies call poison pills a “stockholder rights agreement” or a “shareholder rights plan.” In Gulfport’s case, they call it a “tax benefits preservation plan.” It doesn’t matter what you call it, it’s all the same thing. It’s a provision that defends the company against a takeover.
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LOLA Energy II Says 26 EQT Shale Wells Trespass on Their Leases

Last July MDN broke the news that LOLA Energy had filed a lawsuit in Greene County, PA against EQT for allegedly drilling shale wells under property EQT formerly leased, but property for which the leases had lapsed and were subsequently scooped up by LOLA Energy II (see LOLA Energy Sues EQT for Trespass, Drilling Wells Under LOLA Land). We also broke the news about a second LOLA lawsuit against EQT for the same thing (see LOLA Energy Files 2nd Lawsuit Against EQT for Trespass in SWPA). LOLA is now “ramping up” litigation having filed (or in the process of filing) seven lawsuits. LOLA claims EQT has infringed on 26 of its leases.
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Natl Rig Count Falls Another 59; Marcellus Loses 4 Rigs Last Wk

Not unsurprisingly, the U.S. rig count (for both oil and gas, although mainly oil) continues to plummet week after week. The latest numbers show rigs taken out of active duty (laid down) decreased another 59 over the past week. That’s better than the 76 laid down the week before (see Carnage Continues: Rig Count Down Another 76, Marcellus Down 2), but still not great. Hundreds of rigs have been laid down over the past month–most of them in the oil patch. But not all. Last week the Marcellus lost four rigs after losing one the week before.
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One Company Drills Most M-U Wells Over 8K Feet: Deep Well Services

Source: Deep Well Services (click for larger version)

It’s been a while since we’ve written about one of our favorite companies: Deep Well Services (DWS). DWS is a Marcellus/Utica-born oilfield services company that specializes in “snubbing” work (completing those super-long laterals you read about). DWS has long been known for its technological innovations. The company has drilled the three longest onshore laterals in the U.S. (we’re pretty sure in the entire world), all of them over 20,000 feet, or nearly four miles (see Deep Well Services Helps Drill 3 Longest Onshore Laterals in U.S.). In fact, if the lateral (horizontal) portion of a well anywhere in the U.S. is longer than 8,000 feet, odds are it was snubbed by DWS.
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IEA Annual Report Predicts NatGas Use Drops 5% Worldwide in 2020

Everyone is still trying to get their heads around what has and is happening to the economies and energy markets around the world, suffering huge blows from being shut down due to the COVID-19 coronavirus pandemic. Everyone has their own models and predictions. The latest is the International Energy Agency which has just published its World Energy Review–an analysis of how the virus pandemic is likely to affect world energy markets based on what has happened over the past 100 days.
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Houston Petchem/Downstream Events Go Virtual – Attend for Free!

Each year the folks at Petrochemical Update (now owned by Reuters Events) hosts two concurrent events in Houston, Texas: Petrochemical Supply Chain & Logistics Conference & Exhibition, and the Downstream Conference & Exhibition. This year’s events were due to be held in June. That has just changed. Due to the virus pandemic and travel restrictions, both events will now be virtual. Same great speakers and topics, but now you can tune in to hear them. The best part? IT’S FREE!
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Shale Energy Stories of Interest: Fri, May 1, 2020

MARCELLUS/UTICA REGION: Natural gas, manufacturing industries are an important asset; Equitrans delays quarterly earnings filing due to coronavirus; Indian Point nuclear plant near NYC closes; OTHER U.S. REGIONS: Cheniere chief says price negotiations, force majeures off the table during pandemic; NATIONAL: Small oil drillers are turning off taps more quickly than anticipated; Plan coming to assist oil, natural gas industry through pandemic, say Trump officials; Trump poised to unveil bridge loans for ailing oil companies; Low prices and depressed demand impact global oil and gas pipeline sector; INTERNATIONAL: In 2020 oil crisis, Russia seen coming out on top this time.
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