Weekly Shale Drilling Permits Issued for PA, OH, WV for Jun 8-12

The Ohio Dept. of Natural Resources (ODNR) finally restarted issuing permits for Utica drilling last week after a month-long drought of not issuing any new permits. There were 10 new permits issued in PA for shale drilling June 8-12. There were 6 new permits issued in OH for shale drilling during the same time period. There were no new permits issued in WV for shale drilling last week.
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9 Big M-U Companies Lost $2.6 Billion in Value During 1Q20

A word you will likely see a lot more of in quarterly updates by oil and gas drillers across the country is the word “impairment.” It’s an accounting term that means the value of an asset (leased acreage or wells) is adjusted, down, to reflect a company’s best guess as to how much revenue that asset can generate. We wrote about impairments back in 2015 (see A Basic Guide to Understanding “Impairments” for Marcellus/Utica). Largely because of impairments, nine of the biggest Marcellus/Utica drillers cumulatively lost $2.6 billion in value (on paper) during the first quarter of this year. However, two of the nine had no impairments. And one of the nine made a profit in 1Q20. Can you guess which one?
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Cash NatGas Price at Henry Hub Hits 21-Year Low – Blame LNG

Yesterday physical natural gas delivered at the Henry Hub trading point hit its lowest cash price in 21 years–since December 1998. Cash Henry Hub settled at $1.38/MMBtu (million BTUs, the equivalent of Mcf or thousand cubic feet). The Columbia Gulf mainline trading hub (in Louisiana) plunged to $1.285/MMBtu. Right here in the Marcellus, the Transco Zone 4 price fell to $1.36/MMBtu. They all hit their lowest settlement levels since 1998. Why? Blame it on LNG.
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Equitrans Consolidates Under Corp Umbrella, Dissolves LP

Equitrans, formerly EQT Midstream, separated from EQT in November 2018. Equitrans, via its EQM Midstream affiliate, gathers, processes, and flows most of EQT’s natural gas production, getting it to market. In February Equitrans announced it will absorb EQM, a limited partnership, into the fold (see Equitrans Merging in EQM Midstream, Lowers Fees for EQT $535M). The two entities have always operated as a single entity with the same management, but on paper they have different sets of investors and different corporate structures. As of today, the two will become one in the form of a “C” corporation.
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Former PA House Speaker Turzai Joins Pittsburgh Gas Utility

We previously told you that Pennsylvania House Speaker Mike Turzai, a long-time champion for the Marcellus Shale industry, would leave office as of Monday (see Sad Day: PA House Speaker Mike Turzai Quitting Next Monday). The very next day after leaving (yesterday), Essential Utilities Inc., the newly created company from merged Aqua America and Peoples Gas (Pittsburgh-based natgas utility company) has hired Mike as general council.
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Vallourec Innovates New Pipe Connectors for Shale Drillers

Vallourec, headquartered in Boulogne-Billancourt, France, manufactures steel pipes used in the oil and gas industry. The company employs some 19,000 people in 20 countries, including the U.S. In fact, Vallourec employed (at least at one time, prior to recent layoffs) more than 750 at three Youngstown, Ohio units: Vallourec Star, VAM USA and Vallourec USA Corp. The company has just announced a new high torque connection for shale drill pipes, something they call “a technological breakthrough for the industry.”
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Shale Energy Stories of Interest: Wed, Jun 17, 2020

MARCELLUS/UTICA REGION: NY, PA offer vastly different approaches to natural gas; W&J speaker sees positives ahead for oil and gas; PennEast Pipeline – update on request for Supreme Court review; OTHER U.S. REGIONS: US fracking backlog grows to 25 months: Rystad Energy; NATIONAL: Chesapeake reportedly skips interest payment; DOJ petitions the U.S. Supreme Court to stay NWP 12 permit ruling; INTERNATIONAL: As Chinese LNG imports increase, U.S. gains market share.
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