CNX Scaling Back Wet Gas Production, Charts Course Next 7 Yrs
CNX Resources released its first-quarter 2020 update yesterday, along with hosting a conference call with analysts. CEO Nick DeIuliis laid out a plan for the company for the next seven years. Silencing the naysaying critics who say shale companies are not profitable and some sort of Ponzi scheme, CNX says it is on track to make $300 million in free cash flow (i.e. profits) this year, $400 million next year, and then $500 million each year until 2026. CNX is a cash flow machine!
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Energy Transfer’s Revolution Pipeline runs through Bulter, Beaver, Allegheny, and Washington counties in southwest PA. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see 
The full U.S. Court of Appeals for the District of Columbia (DC Circuit) heard oral arguments yesterday in a case of major importance to the future of all federally-approved pipeline projects. The case revolves around the Federal Energy Regulatory Commission’s (FERC) use of something called a tolling order in approving Atlantic Sunrise Pipeline (in the PA Marcellus). Big Green groups launched the lawsuit in an effort to strip away FERC’s right to use tolling orders when considering requests to “rehear” decisions to approve pipelines.
The shutdown of the world’s economy is not only affecting oil usage (and prices), it’s also affecting the usage and prices of LNG–liquefied natural gas. LNG and natgas usage are down around the world–particularly in Europe and Asia. Less demand means lower prices, and (in this case) the cancelation of a number of tankers that were supposed to deliver our LNG to other countries. Reuters is reporting 23 or more U.S. LNG cargoes for June loading have now been canceled.
In contrast to today’s story about LNG being on the ropes (see US LNG Export Cargoes Canceled as Coronavirus Destroys Demand), the International Gas Union (IGU) published its annual LNG report yesterday. The report highlights the material changes in the global LNG industry happening in 2019. The worldwide LNG trade increased by 13% to a total of 354.7 MT (million tons). The Marcellus/Utica gets a prominent shoutout in the report.
A Standford University professor who sued another scientist who dared to criticize his wacky views on renewable energy in a journal article sued the scientist and the journal for defamation. It took a while for the lawsuit to play out (two years), but a judge in the case recently ruled the Standford prof was wrong in filing the lawsuit and must now pay the attorney’s fees for those whom he sued. Sweet justice.
MARCELLUS/UTICA REGION: ExxonMobil donates medical-grade sanitizer to Pa. for COVID-19 response; Pipelines, transmission lines impacted by hold on federal stream permits; OTHER U.S. REGIONS: Final phase of natural gas line expansion between Wallingford, Middletown begins; Permian natural gas forwards curve signals better days ahead; Gas well projects spike amid negative oil prices; NATIONAL: Low liquidity and limited available storage pushed WTI crude oil futures prices below zero; Oklahoma governor says pandemic “Act of God,” asks Trump to help oil & gas; Trump faces big decisions on energy industry rescue as U.S. runs out of places to store oil; Natural gas broke a bearish trading pattern last week; As oil prices plunge, energy job losses soar; INTERNATIONAL: Hidden threat: Japan has only 2-week stockpile of LNG.