Cabot O&G 3Q: 2.4 Bcf/d, Drilled 13 Wells, Upper Marcellus Coming

Dan Dinges, CEO of Cabot Oil & Gas, said last week: “2020 has proven to be the most challenging year for natural gas prices in the last 25 years, resulting from a multi-year trend of overcapitalization of both oil and natural gas assets across our industry.” Indeed. The company released its third-quarter 2020 update on Friday and reported a net loss of $15 million, compared to net income of $90.4 million in 3Q19. This is the first quarterly net loss for Cabot in recent memory. Still, there was plenty of good news coming from the 3Q update…
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Range 3Q: $680M Loss, Shut-in Marcellus Prod, M&A Possibility?

Range Resources issued its third-quarter 2020 update on Friday. The company, the very first driller to sink a well in the Marcellus, lost $680 million in 3Q. Most of the loss was a one-time charge called “exit and termination” related to the company’s sale of their Louisiana Haynesville Shale assets in August. The update didn’t state how many new wells were drilled in the Marcellus, but it does say Range connected 19 new wells to sales in 3Q with plans to add another 7 wells to sales by the end of the year.
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FERC Says Gulfport Energy Can’t Cancel REX Pipeline Contracts

While Gulfport Energy (big Ohio Utica driller) hasn’t officially filed for bankruptcy, it’s certainly a possibility (see Gulfport Energy Misses Debt Payment, in “Restructuring” Talks). Rockies Express (REX) pipeline, as a preemptive measure to prevent Gulfport from using Chapter 11 as an excuse to break its contract, asked the Federal Energy Regulatory Commission (FERC) to issue an order that disallows Gulfport from breaking its REX contract should it file for bankruptcy.
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PA DEP Trash Talks ET/Sunoco re Mariner East 2 Problems

The bad blood between Energy Transfer (ET) and the Pennsylvania Dept. of Environmental Protection (DEP) continues. ET’s Sunoco Pipeline subsidiary is desperately trying to complete the Mariner East 2X pipeline from eastern Ohio through to Marcus Hook near Philadelphia. A recent drilling mud spill in Marsh Creek State Park prompted the DEP to demand Sunoco change the route for ME2X (which was less than 60 days from being done) to a new route around the State Park (see PA DEP Orders Sunoco to Reroute ME2X Pipeline Around State Park).
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FirstEnergy Fires CEO, OH Cities Sue to Block Nuke Bailout Pymts

It’s all starting to come undone for FirstEnergy Corporation. Last week two of Ohio’s three largest cities sued to block annual $150 million payments to FirstEnergy’s Energy Harbor subsidiary on the basis those payments are ill-gotten gain, the result of FirstEnergy bribing government officials to pass House Bill 6 (HB 6) and keep it passed (see FirstEnergy Involved in Bribery Scheme to Pass $1B Nuke Bailout Law). Also happening last week: FirstEnergy’s board of directors fired its CEO and two other senior managers in light of the mushrooming scandal.
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After Floating $350M in New Stock, EQT Floats $350M in New Bonds

Last week EQT Corporation announced a deal to buy Chevron’s considerable Marcellus/Utica assets (land and wells) for the lowball price of $735 million (see EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock). EQT also announced, on the same day, they are floating up to 23 million new shares of company stock to help pay the purchase price, hoping to raise ~$350 million. On Friday EQT announced it will float new bonds (debt) to raise another $350 million, also meant to help pay for the Chevron purchase.
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Other Stories of Interest: Mon, Nov 2, 2020

MARCELLUS/UTICA REGION: Natural gas will not be eclipsed by renewables; Marcellus Shale gas benefits touted by panelists; OTHER U.S. REGIONS: Latino leaders are fighting California’s ‘unbelievably regressive’ climate policies; NATIONAL: Exxon warns of $30 billion shale writedown decade after XTO; A wave of stranded oil assets is coming to the U.S. shale patch; New analysis says DUCs can’t sustain US shale output; Oil and natural gas are our best bet for continued economic recovery; The Green New Deal can’t break the laws of physics; Biden has already failed once to deliver the “green jobs” he promises today; Shale plays fail to deliver: look to Alaska; INTERNATIONAL: Dutch municipalities receive another 100 million euros to get rid of natural gas; Russia rules out cutting fossil fuel production in next few decades.
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