ExxonMobil Deciding Fate of XTO Asset Value in 4Q

Last week ExxonMobil issued its third-quarter 2020 update. The company announced it is currently reviewing and making a decision about whether or not to write down (impair) the value of its North American dry gas assets–i.e. XTO Energy. If it writes down the value XTO assets, it will take a huge write-down in value (assets currently on the books at a value of $25-$30 billion).

NOTE: MDN revised this post on 11/9/20 to reflect new information. See an extended explanation below.
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Kimbell Royalty Buys Royalty Payments from M-U Landowners

Kimbell Royalty Partners, headquartered in Fort Worth, Texas, is a leading buyer of oil and natural gas mineral and royalty interests, owning interests in more than 96,000 wells across 28 states, including wells in the Marcellus/Utica region. Yesterday the publicly-traded company issued its third-quarter 2020 update. We discovered some information about their involvement in the M-U, including the Marcellus in northeastern Pennsylvania.
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Montage Resources Releases Last Quarterly Update – Merging Next Wk

After a shareholder vote scheduled for next Thursday, Nov. 12, Montage Resources will be no more. The company is selling itself to Southwestern Energy in an all-stock deal worth $857 million (see Stop Press! Southwestern Energy Buying Montage Resources for $857M). Yesterday Montage issued what will be its very last quarterly update. What does the update show?
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PEDF Continues Effort to End Marc. Production on PA State Land

The radicalized Pennsylvania Environmental Defense Foundation (PEDF) never gives up. In June 2017, the PEDF won a case at the PA Supreme Court by the skin of their teeth (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). The case dealt with the narrow issue of how PA can spend revenue raised from drilling for oil and gas under state-owned land. A divided court ruled that money from royalties (not lease signing bonuses) must be used only for “environmental” purposes.
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OFS Company Weatherford Gets Third New CEO in 3 Years

In June, Weatherford International, the world’s fourth-largest oilfield services (OFS) company, announced that its CEO, Mark McCollum, had suddenly “left” the company (see Weatherford CEO Out Days Before Annual Meeting – 2nd Bankruptcy?). McCollum was previously the CFO of Halliburton, lured away in June 2017 to run Weatherford (see Halliburton Hires New CFO After Old CFO Left to Run Weatherford). McCollum was the second CEO over the past three years. We now have a third new CEO: Girish Saligram.
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Repubs Keep Control of PA Legislature, Block Wolf’s Energy Plan

Although the national election is still undecided (looking like Biden, a complete disaster), in almost every other respect Republicans (i.e. pro-shale candidates) won, big-time. Republicans gained seats in the U.S. House of Representatives, look to be keeping a majority in the U.S. Senate, and picked up seats in many state legislatures. Leftist Democrats poured BIG money into Pennsylvania in an attempt to flip both the PA House and Senate from red to blue. They failed. And that’s very good for shale energy in the state.
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Other Stories of Interest: Fri, Nov 6, 2020

MARCELLUS/UTICA REGION: CNX supports area school districts as part of ongoing COVID-19 community response; Natural gas shouldn’t be a partisan issue; Dominion comes full circle as it works to offload remaining US gas pipeline assets; NATIONAL: U.S. LNG exports continue weekly rise; Sempra looking at strategic funding options to support North America LNG plans; Ditch Paris—and save America; INTERNATIONAL: Saudi Aramco reports increasing natural gas output, with earnings climbing in 3Q; A warning from the United Kingdom: renewable energy may not suffice.
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