Expand Energy CEO: Drillers Won’t Add New Production at $3.50 Gas
Expand Energy CEO Nick Dell’Osso was recently interviewed at the Goldman Sachs Energy, Clean Tech & Utilities Conference held in Miami, Florida, on Jan. 6. During the talk, Dell’Osso outlined Expand’s strategy following the merger of Chesapeake Energy and Southwestern Energy, emphasizing that even if natural gas prices reached the $3.50/MMBtu range, the company would remain disciplined and likely prioritize shareholder returns (such as dividends and buybacks) over aggressive production growth. With respect to the price of gas, he said this of producers in general: “But if we continue to have pricing that hangs around $3.50, I just don’t think you have a producer that is motivated for growth. I think the marginal breakeven for growth in this country is above $3.50.” Read More “Expand Energy CEO: Drillers Won’t Add New Production at $3.50 Gas”
On August 17, Eureka Resources’ Williamsport Second Street facility (one of the three wastewater treatment plants previously operated by Eureka) leaked some of its stored untreated frack wastewater, which ended up in the nearby Susquehanna River via a storm drain (see 
In November of last year, both New York and New Jersey issued the required federal water permits for the Williams Transco Northeast Supply Enhancement (NESE) natural gas pipeline project (see 
As we’ve often noted, the NYMEX futures price and spot (physically traded) prices often move in tandem. It’s not a direct, one-to-one relationship, but when futures prices fall, spot prices tend to fall too. Most often, the reason is the weather. However, other factors can influence regional spot prices. In the Marcellus/Utica region, pipeline constraints sometimes contribute to lower prices. If we can’t get our molecules to other markets, they pile up, and the price goes down. There seems to be some of that at play right now. 
The bidding war for Ascent Resources continues and gets more complex. Law firm Kirkland & Ellis has been drawn into a dispute between Ascent Resources investors and the private equity firm Energy & Minerals Group (EMG). Mason Capital Management is questioning Kirkland & Ellis’s role representing the Ascent board while also advising EMG in its legal fight with the Abu Dhabi Investment Council. The dispute concerns EMG’s plan to put Ascent into a “continuation vehicle,” which Mason Capital and other investors have opposed. Other companies have since jumped in to make bids to take over Ascent. 
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