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Chesapeake Whacked Production in 2Q, Down 25%; Lost $227 Million

Chesapeake Energy issued its second quarter 2024 update yesterday. Due to the low price of natural gas, Chesapeake promised (in 1Q) that it would curtail roughly 25% of its production. The company kept its word. Chessy’s 2Q production was 24.9% lower than the same period in 2023. Production was 2.745 Bcfe/d in 2Q24 versus 3.653 Bcfe/d in 2Q23. Interestingly, the company’s production was ALL (100%) natural gas — no oil and no NGLs were produced last quarter. Chessy lost $227 million last quarter versus making $391 million in profit in 2Q23. The company used an average of eight rigs to drill 30 wells and place four wells on production. It built an inventory of five drilled but uncompleted wells (DUCs) and 24 deferred turn-in-lines (TILs). Chesapeake is currently operating seven rigs and two completion crews, having dropped a rig in the Marcellus in July.
Read More “Chesapeake Whacked Production in 2Q, Down 25%; Lost $227 Million”

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14 New Shale Well Permits Issued for PA-OH-WV Jul 15 – 21

For the week of July 15 – 21, a total of 14 permits were issued to drill new shale wells in Marcellus/Utica. Pennsylvania issued six new permits, split two each for INR, Chesapeake Energy, and Olympus Energy. Ohio issued eight new permits, all of them to Encino Energy split between two counties. West Virginia issued no new permits last week.
Read More “14 New Shale Well Permits Issued for PA-OH-WV Jul 15 – 21”

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31 New Shale Well Permits Issued for PA-OH-WV Jul 8 – 14

For the week of July 8 – 14, a total of 31 permits were issued to drill new shale wells in Marcellus/Utica. Pennsylvania had a nice increase with 25 new permits issued. A full 9 of PA’s permits went to Snyder Brothers for a single well in Armstrong County. Another 6 permits went to EQT in PA’s Greene and Washington counties. There were 5 new permits in Ohio, all of them going to Encino Energy for a single pad in Guernsey County. West Virginia had a single new permit going to EQT in Wetzel County.
Read More “31 New Shale Well Permits Issued for PA-OH-WV Jul 8 – 14”

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15 New Shale Well Permits Issued for PA-OH-WV Jun 24 – 30

We’re playing catch-up following our brief Wednesday through Friday vacation last week. The first order of business is to bring you the list of permits issued for the week of June 24 – 30. A total of 15 new permits were issued, with most (10) issued in Pennsylvania. Ohio issued four new permits, and West Virginia issued one new permit. Both Seneca Resources and Apex Energy tied for most new permits (three each), with Seneca’s permits issued in Tioga County, PA, and Apex’s permits issued in Westmoreland County, PA.
Read More “15 New Shale Well Permits Issued for PA-OH-WV Jun 24 – 30”

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Dividends from Drillers Remain High Even as Cash Flows Sink Lower

Investors grew tired of putting money into oil and gas companies during the go-go early years of the shale era from the early 2000s until the early 2020s because O&G companies didn’t pay dividends, and their stock prices plunged in value, in some cases, 90% or more. Drillers got the message, and beginning around four years ago, there was a conversion to a new religion — the religion of free cash flow, dividends, and stock buy-backs. Shareholder returns soared to a peak of over 10% in 2022. But since then, prices (at least for natural gas) have tanked, and along with it, shareholder returns. However, O&G companies are still giving respectable (more than any other sector) returns to shareholders, even amid low commodity prices for oil and gas. Of the three sub-groups in O&G (oil-focused, diversified, and gas-focused), the gas group, of which most M-U drillers belong, is doing the worst with returns to shareholders.
Read More “Dividends from Drillers Remain High Even as Cash Flows Sink Lower”

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46 New Shale Well Permits Issued for PA-OH-WV Jun 10 – 16

Three weeks ago, 31 new permits were issued to drill in the entire Marcellus/Utica region. Two weeks ago, the number dropped (dramatically) to just seven new permits. And then last week, the number of permits issued soared once again — all the way up to 46. Bam! We just kicked it up a notch. Seneca Resources took the top spot for new permits, receiving a total of nine permits, all in Tioga County, PA. Chesapeake Energy and Antero Resources tied for second place with seven new permits each, with Chessy’s permits coming in Bradford County, PA, and Antero’s in Doddridge County, WV. Coming in third was Jay-Bee Oil & Gas with six permits issued in Pleasants County, WV. State by state, PA issued 24 new permits, OH issued 9, and WV issued 13 permits.
Read More “46 New Shale Well Permits Issued for PA-OH-WV Jun 10 – 16”

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Chesapeake COO Predicts 20% Increase NatGas Production Next 5 Yrs

Chesapeake Energy has gone through some major changes over the past four years. In June of 2020, Chessy declared bankruptcy (see Chesapeake Files for Bankruptcy – Debtors to Take Ownership). After Chessy exited bankruptcy, the new owners booted CEO Doug Lawler in April of 2021 (see Doug Lawler Out as CEO of Chesapeake Energy). Lawler tried to chart a new direction for the company by drilling for oil. That strategy was a disaster. The new board selected long-time Chesapeake CFO Dominic “Nick” Dell’Osso as the new CEO in October 2021 (see Chesapeake Makes it Official – CFO Dom Dell’Osso New CEO). Dell’Osso and the board selected a new direction for the company, changing its ill-fated quest to drill for oil to drilling for natural gas, its first and original mission. So, when Chesapeake’s current COO (Chief Operating Officer and top driller) predicts a 20% increase in natural gas demand (and consequently production) compared to today, we sit up and listen.
Read More “Chesapeake COO Predicts 20% Increase NatGas Production Next 5 Yrs”

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31 New Shale Well Permits Issued for PA-OH-WV May 27 – Jun 2

Two weeks ago, 18 new permits were issued to drill in the Marcellus/Utica region. Last week, May 27 – June 2, the number increased dramatically by 72% to 31 new permits. Most of the new permits came from two drillers. Range Resources scored the most with 11 new permits spread over two pads in Washington County, PA. EQT received nine new permits for a single pad in Wetzel County, WV. Chesapeake Energy received five new permits, all in Bradford County, PA. In fact, the rest of the new permits were all in PA, which handed out 22 new permits last week — a huge increase over the typical numbers for PA over the past few months.
Read More “31 New Shale Well Permits Issued for PA-OH-WV May 27 – Jun 2”

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Profits (Earnings) for Most M-U Drillers Plunged in First Quarter

While oil-focused and large diversified drillers in the U.S. made healthy profits during the first quarter of this year (January through March), such was not the case for natural gas-focused drillers. RBN Energy tracks 43 exploration and production (E&P) companies that are publicly traded and reports of those 43 that the 16 oil-focused and 15 diversified E&Ps were solidly profitable in 1Q24, earning $20.65/boe (barrels of oil equivalent) and $18.49/boe, respectively. However, the 12 gas-focused E&Ps were “under siege,” posting a loss of $1.65/boe.
Read More “Profits (Earnings) for Most M-U Drillers Plunged in First Quarter”

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18 New Shale Well Permits Issued for PA-OH-WV May 20 – 26

Two weeks ago, 16 new permits were issued to drill in the Marcellus/Utica region. Last week, May 20-26, the number increased by two to 18. Two drillers tied for the top prize for most new permits. Chesapeake Energy received five new permits, all of them for drilling in Sullivan County, PA. Ascent Resources also received five new permits, with four of them to drill in Jefferson County, OH, and one in Guernsey County, OH. Antero received three permits for drilling in Wetzel County, WV. EQT Corporation got two permits to drill in Washington County, PA. Range Resources, Olympus Energy, and INR each got a single new permit (see below for where).
Read More “18 New Shale Well Permits Issued for PA-OH-WV May 20 – 26”

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We Have a Number: Chesapeake Laid Off 10% of Workforce – 80 People

Yesterday, MDN brought you the news that Chesapeake Energy, with its headquarters in Oklahoma City, OK, had begun a round of layoffs, supposedly (according to Chesapeake) due to the company divesting from Eagle Ford oil assets (see Chesapeake Energy Brings Out the Ax, Begins Cutting Jobs). Yesterday, we did not know how many people were let go. Today, we have that information courtesy of the company’s hometown newspaper, The Oklahoman. Chesapeake laid off 10% of its workforce, which amounts to around 80 people.
Read More “We Have a Number: Chesapeake Laid Off 10% of Workforce – 80 People”

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Chesapeake Energy Brings Out the Ax, Begins Cutting Jobs

The ghost of Doug “the ax” Lawler is once again roaming the halls of Chesapeake Energy (see Chesapeake’s Doug Lawler Gave Himself a Raise After Firing 1,500+). Reuters is reporting (exclusively) that Chesapeake has begun to lay off some of its employees (no numbers given) following the divestiture of its Eagle Ford oil assets. The implication is that those who worked in the Eagle Ford program are being let go, although we don’t know that for sure. Chesapeake reps deny the layoffs have anything to do with its impending merger with Southwestern Energy. [Pssst….hey….we have a bridge we’d like to sell ya’. It’s located in Brooklyn. Real cheap.]
Read More “Chesapeake Energy Brings Out the Ax, Begins Cutting Jobs”

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16 New Shale Well Permits Issued for PA-OH-WV Apr 29 – May 5

Two weeks ago, during the week of April 22 – 28, there were 26 new permits issued to drill in the Marcellus/Utica. Last week, for April 29 – May 5, there were just 16 new permits issued. Encino Energy was the top receiver of permits with 7 permits between two counties: Carroll and Harrison, both in Ohio. EQT (mainly under its Rice Drilling name) received 5 permits between Fayette and Greene counties in Pennsylvania. INR picked up 2 new permits in Guernsey County, OH. Both LOLA Energy and Chesapeake Energy picked up 1 new permit for Butler and Sullivan counties in Pennsylvania.
Read More “16 New Shale Well Permits Issued for PA-OH-WV Apr 29 – May 5”

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26 New Shale Well Permits Issued for PA-OH-WV Apr 22 – 28

Two weeks ago, during the week of April 15 – 21, there were 16 new permits issued to drill in the Marcellus/Utica. Last week, for the week of April 22 – 28, there were 26 new permits issued. Finally! A little good news on the permit front. Snyder Brothers took the top prize with eight new permits issued, all of them for a single well pad in Armstrong County, PA. Chesapeake Energy scored five new permits, all of them for a single pad in Bradford County, PA. EQT Corporation (using its Rice Drilling subsidiary) received four permits in Greene County, PA. Encino Energy also received four permits, all for one pad in Harrison County, OH. Antero Resources received three permits in Wetzel County, WV, and Southwestern Energy received two permits in Brooke County, WV.
Read More “26 New Shale Well Permits Issued for PA-OH-WV Apr 22 – 28”

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Chesapeake 1Q Production 3.2 Bcf/d, Drilled 28 Wells, Profit $26M

Chesapeake Energy issued its first quarter 2024 update yesterday. The ongoing low price of natural gas and Chesapeake’s previously announced curtailment of ~25% of its production caused the company to miss Wall Street estimates (of $87 million) for first-quarter profit. Chessy made $26 million in net income during 1Q24 versus making $1.4 billion in 1Q23. Ouch. Chesapeake’s net production in the first quarter was approximately 3.20 Bcfe/d (100% natural gas), utilizing an average of nine rigs to drill 28 wells and place 29 wells on production while building an inventory of 24 drilled but uncompleted (DUCs) wells and 22 deferred turn in lines (TILs).
Read More “Chesapeake 1Q Production 3.2 Bcf/d, Drilled 28 Wells, Profit $26M”

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17 New Shale Well Permits Issued for PA-OH-WV Apr 8 – 14

Two weeks ago, for April 1 – 7, there were eight new permits issued (see 8 New Shale Well Permits Issued for PA-OH-WV Apr 1 – 7). However, all eight were issued in Pennsylvania. Both Ohio and West Virginia failed to issue any new permits two weeks ago. Fortunately, that changed last week. For the week of April 8 – 14, there were 17 new permits issued. Seven of those permits were issued in Pennsylvania, with the vast majority going to EQT (six permits, all in Greene County). Ohio issued four new permits last week, all of them to oil driller Encino Energy for Carroll County. West Virginia issued six new permits, with four going to EQT in Marion County and two going to Southwestern Energy in Brooke County.
Read More “17 New Shale Well Permits Issued for PA-OH-WV Apr 8 – 14”