Corp Raider Pressures Marathon to Split Itself into 3 Companies
Not even a year go–in December of last year–one of the biggest and brightest stars in the midstream firmament for the Marcellus/Utica, MarkWest Energy, sold itself to Marathon Petroleum (see MarkWest Energy Investors/Unitholders Approve Merger with Marathon). We wondered at the wisdom of such a move, but who are we? What’s done is done. Ironically, an “activist investor” hedge fund (i.e. corporate raider) by the name of Elliott Management yesterday disclosed to the world that they have taken a 4% stake in Marathon. Corporate raiders target companies they can bully by buying enough shares to force those companies to fire people and sell assets. It “unlocks value for shareholders” you see–meaning it will boost the per share price of the raider’s stock so they can turn around and sell that stock and line their already-fat pockets. Disgusting. True to form, Elliott is targeting Marathon. They sent a letter to the Marathon board with the “suggestion” that the company split itself (after buying MarkWest less than a year ago) into three separate companies (retail, refining, midstream) in an effort to “unlock $14 – $19 billion for shareholders.” Unfortunately there are at least two other raiders lurking in the background with small stakes in Marathon who may join Elliott to pressure Marathon…
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In May of this year, the federal Environmental Protection Agency issued more shale-killing regulations. The EPA issued 600 pages of new regulations that require drillers to install expensive new equipment to locate so-called fugitive methane that may or may not be leaking from wells, pipelines, etc. (see 
It’s always nice when our favorite government agency, the U.S. Energy Information Administration, says nice things about the Marcellus/Utica. Today the EIA, publishing in its Today in Energy online publication, highlights the Utica Shale and the very necessary pipeline projects that promise to bring more “takeaway” capacity from the ever-expanding Utica. EIA looks at four key pipeline projects: Rover, NEXUS, Leach Xpress and Rayne Xpress. If you add them all together, those four new projects (all due to be completed by end of 2018 or before), will add an additional 6.8 billion cubic feet per day (Bcf/d) of takeaway capacity out of the Utica…
In early November Canadian midstream giant TransCanada announced they were going on a fundraising bender to get money to pay for their recent $10 billion acquisition of Columbia Pipeline (see 
Something noteworthy has happened in Buckingham County, VA. Planning Commission members in the county worked hard to evaluate a request by Dominion for their Atlantic Coast Pipeline project, a request to build a compressor station in Buckingham County. Residents expressed concerns–over noise, air pollution, explosions–you name it. Planning Commission members listened, and in the end, voted to recommend that Dominion be allowed to build the compressor station, as long as they adhere to 40 conditions set forth in the Commission’s recommendation. You see, this is how adults do things. They are reasonable (able to be reasoned with). They listened, closely. They heard the concerns. They devised a plan that will allow Dominion to build the compressor station, but at the same time protect the residents that live near it. Of course that wasn’t good enough for the children-in-adult-bodies who chanted a threat to shut down the pipeline…
Marcellus Drilling News typically takes Thanksgiving and the day after off. This year we will add Wednesday to the mix, so no daily MDN this Wednesday through Friday. We will be sure to keep an eye on the news and if there is anything earth-shattering, we will bring you that news. Otherwise, we’ll see you next Monday. Have a great Thanksgiving! – Jim Willis, editor
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Dela. Riverkeeper throws a fake parade; Trump will roll back Obama’s climate craziness; Trump to boost US shale industry; Rusty’s lessons from five years of crude, gas & NGL forecasts; Russia & Saudis on shaky common ground.