Gulfport Energy 2Q – $556M Paper Loss, Production Down 24%

Gulfport Energy, the third-largest (by number wells drilled) producer in the Ohio Utica Shale, issued its 2Q20 update yesterday. Back in June, the company said it would shut-in some of its production, delaying production until later this year (see Gulfport Caps Utica Production, Delays Drilling to Late 2020). The company made good on its promise. Gulfport’s 2Q production was 1,027 MMcfe/d (million cubic feet equivalent per day), down from 1,358 MMcfe/d in 2Q19. The company reports a loss of $556 million during 2Q, but most if not all of it comes from impairments and depreciation–in other words, a paper loss. The company generated $43.9 million in free cash flow in 2Q.
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Energy Transfer Says Mariner East 2X Online by End of 2020

It’s been a loooong road getting the Mariner East 2 (ME2) pipeline system, which includes building two pipelines side-by-side from eastern Ohio across Pennsylvania to the Philadelphia area, done. From what we can tell, ME2 is now done–with the possible exception of a few miles where smaller pipeline is being used until a bigger replacement is done. For all intents, ME2 is done. However, ME2X, a second pipeline being built next to the first, is not yet done. But it’s getting close! According to comments from Energy Transfer (ET) made during a quarterly conference call yesterday, ME2X will be in service by the end of this year, and the entire project will be done-done sometime in 2Q21. Finally!
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Range Resources Lays Off 40 Employees in Pittsburgh & Fort Worth

Most of the layoffs during this particularly brutal (and historic) downturn in the oil and gas market have taken place in oilfield services companies like Halliburton, Baker Hughes and Sclumberger. But exploration & production companies are not immune. Chevron is laying off workers in their Marcellus/Utica operation because the company is selling all of its Appalachian assets and leaving the region (see Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th and Chevron Cuts Another 80 Jobs in M-U; Still Looking for Buyer). Another M-U driller is also laying off personnel–Range Resources.
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PA Senate Committee Tours Deep Well Services Site in SWPA

Members of the PA Senate Environmental Resources and Energy Committee and staff from Deep Well Services, pictured at the DWS training facility on Thurs., July 30. (click for larger version)

Last Thursday a group of Pennsylvania State Senators toured Deep Well Services (DWS) in Butler County, PA. DWS is one of our favorite oilfield services companies. 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 Senators got a behind-the-scenes look at DWS’ technology.
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Sierra Club Loses Court Case to Block Drill Cuttings in NY Landfill

In February MDN told you about an effort by the radicalized Sierra Club to block a New York landfill from accepting drill cuttings from the Pennsylvania Marcellus (see Antis Fabricate Data in Attempt to Block NY Landfill Expansion). The Clubbers fabricated (made up, lied about) data, trying to use this new made-up data in a court case aimed at stopping the C&D Hakes Landfill in Painted Post, NY (near Elmira, located in Steuben County) from accepting PA drill cuttings. The judge has just ruled in the case–against the Clubbers.
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Shale Energy Stories of Interest: Thu, Aug 6, 2020

MARCELLUS/UTICA REGION: Ohio State students, faculty testify for, against on-campus natural gas plant; Plugged In Podcast: Kathryn Klaber on regulation in Pennsylvania; NATIONAL: More than 100 coal-fired plants have been replaced or converted to natural gas since 2011; US senators aim to ease pipeline permitting after latest Keystone XL setback; Indicator of oil/gas bankruptcy risk falls by half, contrary to negative ratings outlooks.
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