Southwestern CEO Says Company Slowing M-U Production in 2020

slow warning sign isolated

Bill Way, CEO of Southwestern Energy, said in an interview that his company will grow production next year, but not by much. Southwestern’s 2020 growth will be “in the single digits” versus higher growth this year. Which shouldn’t surprise anyone. Reviewing Southwestern’s 3Q19 numbers we find the company’s Marcellus/Utica production from January to September 2019 was 11% higher than the same time frame from last year. Southwestern’s 3Q19 (July to September) production was 8% higher than the previous year’s 3Q. So the signs were already there to see–if you were looking.
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Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All

In a bombshell announcement yesterday, Chevron said it is writing down (reducing the paper value) of all its shale assets by $10-$11 billion in the fourth quarter. “More than half” of is a write-down of its Marcellus/Utica assets. Not only that, but Chevron says it is “evaluating its strategic alternatives for these assets, including divestment.” Translation: Chevron has put its M-U assets, all of them (over 750,000 890,000 acres plus producing wells) up for sale. But the bad news doesn’t stop there.
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Antero Puts $1B M-U Assets for Sale; Shaves $350M from Midstream

Antero Resources is working hard to get the company on sound financial footing. That’s the message we took away from an announcement on Monday from the company that says (a) they’ve asked for and received a break in midstream (pipeline) prices from their own subsidiary, Antero Midstream, and (b) they’re putting some of their considerable Marcellus/Utica assets up for sale, hoping to raise upward of $1 billion.
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Judge Finds Exxon Not Guilty in Fraud Case – NY AG Humiliated

As it turns out, Exxon didn’t know. You may recall the hue and cry from radical anti-fossil fuelers that #ExxonKnew–knew they were toasting mom earth by extracting and encouraging the burning of oil and natural gas. The New Attorney General’s office launched an investigation, and then a lawsuit, charging the same thing. The NY AG claimed Exxon had defrauded shareholders by covering up knowledge of global warming. The first lawsuit to go to trial against Exxon for causing global warming was in NY, where the AG (Letitia “Tish” James) headed up a disaster of a lawsuit. She (and her office) was thoroughly and completely humiliated by a NY judge who said she never proved anything. Her team’s performance was worse than that of a first-year law student.
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Chevron Leases Land Under Mon River for $4K/Acre, 20% Royalties

This post catches you up on both some old and some new news. In February of this year Chevron signed a lease with the Pennsylvania Dept. of Conservation and Natural Resources (DCNR) to lease 1,028.4 acres of land *under* the Monongahela River in Greene and Fayette counties (southwestern corner of the state). That’s the old news. The new news is that Chevron has just added another 235.6 acres to the original lease for a grand total of 1,264.3 acres. Chevron is paying DCNR just over $5 million in lease signing bonuses for the entire deal.
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Olympus Energy (former H&H) to Drill 10-11 SWPA Shale Wells 2020

In September, Huntley Energy Exploration (HHEX), a conventional and shale driller headquartered in Southpointe (Washington County), PA that leases land and drills in the Pittsburgh suburbs, changed its name to Olympus Energy (see PA Driller HHEX Renames Itself Olympus Energy). Renaming the company after Mount Olympus, the highest mountain in Greece and home of the mythical gods, was a natural and “fits the culture” of the company according to CEO Chris Doyle. In a recent interview, Doyle said his company drilled 11 shale wells this year and plans to drill another 10-11 next year.
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IEEFA Report Says Marcellus/Utica Drillers in Financial Trouble

Masquerading as a nonpartisan, independent nonprofit, the Institute for Energy Economics and Financial Analysis (IEEFA) reportedly “conducts research and analyses on financial and economic issues related to energy and the environment.” The Institute’s stated mission is “to accelerate the transition to a diverse, sustainable and profitable energy economy.” In other words, they’re anti-fossil fuels. We spotted an article appearing on OilPrice.com that quotes a new “study” issued by IEEFA. The article opens by saying, “drillers in Appalachia are in particularly bad shape.” Is it true? Is the end near? Is it a shalepocalypse?
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Chesapeake Arranges $1.5B Loan to Pay Off Old Debt, Stock Soars

In an impressive feat of financial jiu-jitsu, Chesapeake Energy has just snapped closed the mouths of those who said the company was imminently heading for bankruptcy following the company’s third quarter update (see Chesapeake Energy 3Q – Slash Drilling 30%, Bankruptcy Possible). Yesterday Chessy issued three press releases to announce it has swapped out some of its old debt for 70 cents on the dollar, and has arranged a 4 1/2 year loan for $1.5 billion. Chesapeake stock soared 17% higher on the news.
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Natural Gas Supply Association Goes Nuts, Supports Carbon Tax

What’s the clinical term for a person who intentionally wants to harm him or herself? Self harm? Self injury? Self flagellation? That’s what we call the situation at the NGSA (Natural Gas Supply Association) which yesterday said it supports an economy and shale-killing carbon tax “as a critical pathway to aggressively reducing carbon emissions.” Are they nuts? Have they lost their collective minds?!
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ExxonMobil Considers Philadelphia Area for Ethane Cracker Plant

MDN previously reported on the rumor that ExxonMobil is sniffing around southwestern Pennsylvania looking for a site to build a multi-billion dollar ethane cracker plant (see Exxon Mobil Sniffing Around SWPA to Build Second Cracker Plant). We then told you Exxon is not only looking in Beaver County (where Shell is building it’s cracker) but also in nearby Washington and Greene counties too (see Exxon Widens Search to Build SWPA Cracker Plant to Other Counties). But what’s this? We now read about another rumor–that Exxon is also considering southeast PA, the Philadelphia area!
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Non-U.S. Big Oil Companies Want EPA to Regulate Methane Emissions

Here’s something that really bugs us. The Donald J. Trump Administration is doing its best to try and roll back some of the smothering overregulation foisted on the oil and gas industry during the Obama reign of terror. Example: The EPA is looking to reverse direct regulation of oil and gas methane (created by Obama) because the EPA already regulates methane emissions via regulations for volatile organic compounds (VOCs). Yet a few oil “majors” (biggest oil companies in the world) want the EPA to continue its onerous methane regulations. Thing is, the oil majors that want this insane overregulation are NOT American-based companies.
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Fed Judge: Northeast Natural Energy Owes $7.9M to PA Landowners

Northeast Natural Energy (NNE) is a small-to-midsized driller headquartered in Morgantown, WV. It’s a young company, drilling its first shale well in 2013. In April 2017 MDN reported that NNE had obtained $300 million of investment from two investment firms (see WV Driller Northeast Natural Energy Gets $300M Investment). NNE currently owns 49,000 acres of leases “in the heart of the Marcellus Fairway,” operating 27 Marcellus wells and over 100 conventional oil and gas wells, mainly in West Virginia with some located in southwestern Pennsylvania.
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NY AG’s Prosecution of ExxonMobil Falls Apart – Case Dismissed?

New York’s Attorney General has viciously gone after ExxonMobil in state court hoping to prove the company knew, for years, that burning its oil and gas would lead to so-called man-made global warming and eventually kill the planet. And, says the AG, Exxon covered it up from investors because someday their stock will be worthless when everyone finds out, and they don’t want investors to know about it just yet. The AG is trying to prove the company has engaged in securities fraud–and that case is collapsing, near to having all charges dismissed.
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Gulfport’s Biggest Shareholder Says Current Board has Made a Mess

Gulfport Energy, one of the biggest drillers in the Ohio Utica Shale (210,000 acres), concentrates its drilling in the Ohio Utica and the Oklahoma SCOOP plays. Earlier this week the company made a major announcement: They are laying off 13% of the workforce, ending (for now) their stock share buy-back program, and “refreshing” the board with three new members (see Gulfport Fires 13% of Workers, Ends Stock Buy-Back, Board Changes). According to Gulfport’s largest shareholder, investment firm Firefly Value Partners, those changes are not enough.
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American Water Selling PA Frack Water Co. Keystone Clearwater

In February 2015 Rex Energy announced it would sell its Keystone Clearwater Solutions subsidiary which provides water services for shale drillers in the Marcellus/Utica (see Rex Energy Looks to Sell 28,300 Marcellus Acres in Bid to Raise $). In June 2015 American Water Works, the country’s largest publicly traded water and wastewater utility company, announced it was buying Keystone from Rex for $130 million (see American Water Announces Agreement to Acquire Keystone Clearwater Solutions). Four years later, Keystone is being sold once again.
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