CNX Resources Lays Off 10% of Total Workforce – More Cuts Coming?

CNX Resources has just laid off (i.e. fired) roughly 50 employees company-wide, most of them at company headquarters in Canonsburg. But not all. We heard from an MDN trust source who said at least nine workers got their walking papers in West Virginia. Given the company employs about 500 people, 50 fired represents 10% of the workforce. Question is, will there be more firings?
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EQT CEO Toby Rice Explains Combo Drilling at WV Town Hall Mtg

Last week MDN told you that EQT CEO Toby Rice is conducting a series of four “town hall” style meetings with landowners in regions where the company drills (see EQT CEO Toby Rice Hits a Home Run with Landowner Meetings). The first meeting, held in Green County last Wednesday night, was a huge success. We also reported in a followup story that Toby mentioned EQT’s new drilling strategy to make money in a low gas price environment is called “combo development” (see EQT Plans to Make Money with $2/Mcf NatGas Price).
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Top Energy CEOs Skate on Thin Ice by Turning Against Shareholders

If Jeff Bezos (Amazon CEO) and Tim Cook (Apple CEO) jump off a cliff, should you, as CEO of an energy company, jump off too? The CEOs of ExxonMobil, Chevron, Marathon Petroleum and several other big oil and gas companies have just answered that question in the affirmative. Splat. Perhaps they were caught up in the euphoria of the moment. Perhaps they were shamed. (A new disorder for the DSM V: “CEO shaming.”) For whatever reason, a group of CEOs from some of the largest U.S. companies now say the people who buy their company’s stock and fund them via infusions of investment capital are no longer the #1 priority for their companies. We wonder what investors in those companies think. Have they had a change of heart? “Here, take my money and pee it away with no returns. Please! I don’t need this money any more.” Hey Jeff and Tim, we have a bridge in Brooklyn we’d like to sell ya…
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EQT Plans to Make Money with $2/Mcf NatGas Price

For years MDN has observed that Cabot Oil & Gas is one of the few Marcellus/Utica drilling companies that can “spin straw into gold”–meaning it makes money on selling natural gas even when the price of that gas is in the basement (see Marcellus Driller Cabot Oil & Gas: Wall Street’s NatGas “Unicorn”). The new management at EQT aim to turn their company in a spinning-straw-into-gold company too. In a recent interview with the Pittsburgh Business Times, EQT CEO Toby Rice said his strategy for making $500 million in “free cash flow” within two years anticipates the price of natgas to be $2 per thousand cubic feet (Mcf).
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U.S. Senator from Ohio Visits Encino Well Pad to Promote Jobs

Last November Encino Acquisition Partners (i.e. Encino Energy) completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The deal included all of Chesapeake’s 933,000 Ohio acres–with 320,000 net Utica acres–and 920 operated and non-operated Ohio Utica wells.
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Fed Court OKs OH Class Action Royalty Lawsuit Against Cheseapeake

In 2017 a group of Ohio landowners did what others had previously done in Pennsylvania, Texas and elsewhere–they filed a proposed class action lawsuit against Chesapeake Energy claiming Chessy had screwed them and about 1,000 other Ohio landowners out of a collective $30 million in royalty payments (see OH Landowners File Royalty Class Action Lawsuit Against Chesapeake).
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EQT CEO Toby Rice Hits a Home Run with Landowner Meetings

Yesterday MDN told you that new EQT CEO Toby Rice is in the midst of conducting four “town hall” style meetings with landowners–two this week and two next week (see Road Trip! EQT CEO Toby Rice Talks to Landowners in Town Hall Mtgs). By all accounts, the first meeting (Wednesday night in Waynesburg, PA) was a huge success. We’d say he hit the ball out of PNC Park.
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EQT Shifting Charitable Giving Away from City of Pittsburgh

Take note Pittsburgh Mayor Bill Peduto: You can only crap on the shale industry for so long before it comes back to bite you on the backside. EQT CEO Toby Rice told a group of landowners Wednesday night that the EQT Foundation (EQT’s charitable giving arm), the third largest foundation by giving in Pittsburgh, is going to shift its donations away from Pittsburgh and to the counties/regions where the company drills.
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Road Trip! EQT CEO Toby Rice Talks to Landowners in Town Hall Mtgs

After a bruising proxy fight, Toby and Derek Rice (formerly from Rice Energy) won control of EQT, the largest natural gas-producing company in the U.S. (see Rice Bros. Win Proxy War to Control EQT – Toby Rice New CEO). Toby Rice has been CEO for barely a month. He announced late last week that he would conduct four “town hall” style meetings with landowners–two this week and two next week.
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President Trump Visits Shell Cracker Plant Near Pittsburgh

Trump speech at Monaca, PA (credit: Philadelphia Inquirer)

President Trump visited the Shell ethane cracker plant site yesterday in Monaca, PA, along with Secretary of Energy Rick Perry and EPA Administrator Andrew Wheeler. Trump was greeted by a crowd of some 5,000 people, many (most?) of them workers at the site–union members. When was the last time you heard about 5,000 union members attending a rally for a Democrat?! But we digress. Trump toured the facility and delivered a rousing hour-plus speech to those gathered. There is no mistaking the fact that Donald Trump is a big supporter of the oil and gas and petrochemical industries.
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Trump Takes Credit for Shell Cracker Plant – Media Blows a Gasket

Democrats and the media (one and the same) are truly a conflicted, schizophrenic bunch. Both national and local Democrats who pretend to be unbiased journalists (what a joke) couldn’t wait to blast out headlines from yesterday’s visit by President Trump to Monaca, PA that Trump is falsely “taking credit” for the Shell ethane cracker, a plant that began life–at least planning stages–during the reign of their Lord and Savior Barack Hussein Obama. Yet in the next breath they write that this plant Trump is taking credit for will produce eeeeevil plastic that’s dooming all life on Mom Earth to extinction. They want credit for the plant, yet they don’t want the plant. What’s a lib Dem to do?
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M-U Companies Dominate Top 10 NatGas Producers in 2019

Quick: Which company which recently had a board and upper management shakeup and focuses exclusively on Marcellus/Utica drilling is the #1 natural gas producer in the United States? That’s right, EQT. In a list of the top 40 natgas producers in the U.S. (full list below), it’s striking to note that eight of the top 10 are focused exclusively or primarily on the M-U.
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Williams & Cabot Help Bring NatGas to Rural NEPA Community

This is one of those “feel good” stories. Going back to 2012, a number of officials in Wyoming County and the borough of Tunkhannock began to dream about connecting the borough to locally extracted Marcellus Shale gas. Among those who helped turn the dream into reality were Williams (the pipeline company) and Cabot Oil & Gas (shale driller). Thanks to the efforts of all involved, Tunkhannock eventually received state-backed funding to build “phase one” of the project (see PA Approves $2.4M Project to Run NatGas Pipes in Wyoming County). Phase one is now ready to go live.
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EQT COO Gary Gould “Resigns” – Company Eliminates Position

After Toby and Derek Rice seized control of EQT following a bruising proxy fight to control the board, Toby was named CEO of the company. Not long after that, Toby went on record to say he wasn’t cleaning house (see Toby Rice, EQT’s New CEO, is NOT Cleaning House re Top Management). And yet, that’s what it looks like from our point of view. In addition to former CEO Rob McNally and company attorney Jonathan Lushko getting the boot, the company’s chief operating officer (COO), and at least one other senior official, have exited.
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Anti-Drilling Activist Bad-mouths Fracking at Murrysville Hearing

A paid political activist who is not a doctor but works for the so-called Physicians for Social Responsibility (left wing group), told a hearing in Murrysville (Westmoreland County), PA on Wednesday that she could not prove fracking leads to negative health affects on those living near the activity, but in the very next breath she essentially said it does, saying there’s a “strong correlation” between fracking an ill health. Her proof? A list of Big Green-paid for “health studies” (propaganda campaigns).
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Deal is Done: Anadarko Petroleum Now Part of Occidental Petroleum

Anadarko Petroleum, as an independent company, is no more. The company has officially sold itself and is now merged into Occidental Petroleum in a cash, stock and assumption of debt deal worth $55 billion. At one point Chevron had a deal to buy Anadarko, but Anadarko left them at the altar, along with a $1 billion deal abortion payment (see Anadarko Leaves Chevron at the Altar to Elope with Occidental).
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