Gulfport Energy Files for Pre-arranged Chapter 11 Bankruptcy

We hoped it wouldn’t happen, but warned you it might when Gulfport Energy announced several weeks ago it had missed a debt payment and was in “restructuring” talks (see Gulfport Energy Misses Debt Payment, in “Restructuring” Talks). On Saturday, Gulfport, the third-largest driller in the Ohio Utica Shale (by the number of wells drilled), announced it had filed for a “pre-arranged” Chapter 11 bankruptcy.
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Southwestern Completes Montage Merger, Now 3rd Largest M-U Co.

In August Southwestern Energy announced it is buying out and merging in Montage Resources in an all-stock deal (see Stop Press! Southwestern Energy Buying Montage Resources for $857M). As of Friday Montage, which was itself a merger of two companies (Blue Ridge Mountain Resources and Eclipse Resources) is no more. Montage is now a part of Southwestern.
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PTT Delays Final Cracker Decision to at Least Middle of 2021

Once again PTT Global Chemical is changing the timeline for a final investment decision (FID) to build a $10 billion ethane cracker plant in Belmont County, OH–for the umpteenth time. The most recent timeline had a decision coming by the end of this year or in the first quarter of next year. Whoops, they did it again! The new timeline is now “at least the middle of 2021.”
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ECA Marcellus Trust I Cancels 3Q20 Distribution to Investors

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ECA Marcellus Trust I, traded over-the-counter on the pink sheets, announced on Friday that there will be no distribution (i.e. dividends) paid for the quarter ended September 30, 2020 to shareholders. This is the third quarter in a row the Trust has not paid investors. How much longer is ECA going to withhold payments from investors?
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Shale Driller Bankruptcies Spur Requests to Cancel Pipe Contracts

When a pipeline company considers whether or not to build a new pipeline, the company conducts an “open season”–a time when drillers (producers) can sign long-term contracts to use capacity along the pipeline. Such contracts guarantee pipeline companies will be able to make back the considerable amount of money they have to spend to build the pipeline. What happens when a driller that signed to a 10- or 20-year contract goes bankrupt? Or what happens if a contract will force a driller into bankruptcy? Can such a contract be canceled?
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Other Stories of Interest: Mon, Nov 16, 2020

MARCELLUS/UTICA REGION: More taxes will impede Marcellus Shale production; OTHER U.S. REGIONS: San Francisco bans natural gas in new buildings; NATIONAL: LNG feedgas demand has reached a new all-time high; Cheniere doubling down to cut LNG environmental footprint as stakeholder pressure grows; Physical gas flow constraints, volatility arise at Henry Hub; State climate action unlikely after Democrats fail to flip statehouses; The coming energy shocks under a Biden administration; EPA nominees may face challenging Senate confirmation path; INTERNATIONAL: Europe’s Green Deal is bad news for U.S. LNG.
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