Gulfport Energy 2Q – $556M Paper Loss, Production Down 24%
Gulfport Energy, the third-largest (by number wells drilled) producer in the Ohio Utica Shale, issued its 2Q20 update yesterday. Back in June, the company said it would shut-in some of its production, delaying production until later this year (see Gulfport Caps Utica Production, Delays Drilling to Late 2020). The company made good on its promise. Gulfport’s 2Q production was 1,027 MMcfe/d (million cubic feet equivalent per day), down from 1,358 MMcfe/d in 2Q19. The company reports a loss of $556 million during 2Q, but most if not all of it comes from impairments and depreciation–in other words, a paper loss. The company generated $43.9 million in free cash flow in 2Q.
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It’s been a loooong road getting the Mariner East 2 (ME2) pipeline system, which includes building two pipelines side-by-side from eastern Ohio across Pennsylvania to the Philadelphia area, done. From what we can tell, ME2 is now done–with the possible exception of a few miles where smaller pipeline is being used until a bigger replacement is done. For all intents, ME2 is done. However, ME2X, a second pipeline being built next to the first, is not yet done. But it’s getting close! According to comments from Energy Transfer (ET) made during a quarterly conference call yesterday, ME2X will be in service by the end of this year, and the entire project will be done-done sometime in 2Q21. Finally!
Most of the layoffs during this particularly brutal (and historic) downturn in the oil and gas market have taken place in oilfield services companies like Halliburton, Baker Hughes and Sclumberger. But exploration & production companies are not immune. Chevron is laying off workers in their Marcellus/Utica operation because the company is selling all of its Appalachian assets and leaving the region (see 
In February MDN told you about an effort by the radicalized Sierra Club to block a New York landfill from accepting drill cuttings from the Pennsylvania Marcellus (see 
Three weeks ago there were 27 new permits issued in Pennsylvania for shale drilling. Two weeks ago there were only three new PA permits issued. But over the past week, from July 27-31, PA permits issued for drilling new wells jumped to 32! New permits issued in Ohio last week were six, and two new permits were issued in West Virginia.
MARCELLUS/UTICA REGION: Ohio State students, faculty testify for, against on-campus natural gas plant; Plugged In Podcast: Kathryn Klaber on regulation in Pennsylvania; NATIONAL: More than 100 coal-fired plants have been replaced or converted to natural gas since 2011; US senators aim to ease pipeline permitting after latest Keystone XL setback; Indicator of oil/gas bankruptcy risk falls by half, contrary to negative ratings outlooks.