Antero 4Q: Sending Gas for LNG Exports to Gulf Coast & Cove Point
Antero Resources, one of the biggest Marcellus/Utica drillers with 3.2 Bcfe/d (billion cubic feet equivalent per day) of production, issued its fourth-quarter and full-year 2021 update yesterday. The company earned $901 million in 4Q21, up from $70 million in 4Q20, but still lost $187 million for the full year due to hedges gone bad. Antero generated $237 million and $849 million of Free Cash Flow during the fourth quarter and full year of 2021, respectively. The company placed 10 Marcellus wells and four Utica wells online to sales during 4Q. Antero plans to drill 60-65 new wells in 2022.
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The West Virginia Senate Energy, Industry and Mining Committee had two bills on its agenda for consideration this past Tuesday related to funding the state’s “cash-strapped” oil and gas well inspection unit. One of the bills, Senate Bill (SB) 480 was signed off without discussion and moved along to its next stop before a vote, which is the Senate Finance Committee. The other bill, SB 613, was held over for a future meeting. It got the cold shoulder.
In years gone by, when oil drilling in the Texas/New Mexico Permian, Texas Eagle Ford, or North Dakota Bakken picked up, the increase in oil drilling came with an increase in natural gas production–something called “associated gas” because the gas is not produced for its own sake but as a byproduct of oil drilling. With tightening environmental laws that require oil drillers to capture instead of burn off or flare the gas, those oil drillers looked for markets to sell their associated gas. All of that extra associated gas would compete in the market with Marcellus/Utica gas, because our gas and the associated gas often flows to the same Midwest and Gulf Coast markets. Prices crash due to an abundance of supply with the same (or even less) demand. This time around, things have changed.
The West Virginia Public Energy Authority is a seven-member board that aims to make the best use of WV’s abundant natural energy resources. State code gives the board power to buy, lease, and issue bonds to build electric power plants and natgas transmission projects. Gov. Jim Justice reactivated the board last summer after it had been dormant for upwards of a decade. The first meeting of the new board is next Wednesday.
MARCELLUS/UTICA REGION: Shale giant says it is increasing workforce diversity; NATIONAL: US weekly LNG exports drop by four; Bill to expand natural gas exports to U.S. allies and partners; Senator Bernie Sanders doesn’t understand the oil industry or inflation; AP expands climate change reporting funded by left-wing activist groups; INTERNATIONAL: Oil curves show one of the tightest markets ever.