Nick DeIuliis, President and CEO of CNX Resources Corporation, has been an outspoken advocate for the shale gas industry and manufacturing since at least 2017. And we mean outspoken. The trend continues. Nick has just announced a forthcoming book and a new website to continue his pro-fossil fuel advocacy.
Read More “CNX CEO Nick DeIuliis Publishes New Book, Website Promoting NatGas”
On Friday we brought you the bombshell news that EQT has floated a takeover offer for CNX Resources (see Stop Press: Sources Say EQT Trying to Take Over CNX Resources). CNX CEO Nick DeIuliis spoke to Pittsburgh Business Times ace reporter Paul Gough about the rumor…
Read More “CNX CEO Nick DeIuliis Responds to EQT Takeover Rumor”
Bloomberg is reporting insider sources say EQT, already the biggest natural gas producer in the country (and pureplay driller in the Marcellus/Utica), has sent a takeover proposal to CNX Resources, another major Marcellus/Utica driller. Friendly? Hostile? Who knows. In September inside sources told Reuters that EQT had made a bid on Chevron’s extensive M-U acreage (see Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets). Would/could EQT actually end up buying both? Seems like a stretch.
Read More “Stop Press: Sources Say EQT Trying to Take Over CNX Resources”
Only Pennsylvania issued permits to drill new shale wells last week in the Appalachian region. Neither Ohio nor West Virginia issued any new drilling permits from Oct. 5-9. In PA, some 20 permits were issued in both the northeast and southwest parts of the state.
Read More “Weekly Shale Drilling Permits for PA, OH, WV: Oct. 5-9”
We spotted a couple of stories, one in Barron’s the other in the Wall Street Journal, about the pickup in the futures price of natural gas over the past week, and how those recent gains have led to impressive gains in the share price for Marcellus/Utica drillers. Yesterday the NYMEX Henry Hub futures price closed up 4.11% to $2.74/Mcf. The rising tide lifts all boats.
Read More “Marcellus/Utica Driller Stock Prices Trend Up with NatGas Price”
A few months ago CNX Resources bought out and merged in the remaining amount of CNX Midstream the company didn’t already own (see CNX Resources Buying/Merging in Rest of CNX Midstream for $357M). CNX isn’t waiting until the next quarterly investor conference call to tout the synergies of that move.
Read More “CNX Releases New YouTube Video, Slide Deck “Post Merger””
S&P Global Market Intelligence has done some forensic analysis of permits issued to drill new shale wells in Pennsylvania during August 2020. They compared last month’s permit numbers with the numbers from a year ago and found that PA issued 77 new permits last month, down 24% from August 2019.
Read More “PA Shale Drilling Permits Down 24% in August, but EQT Roars Back”
CNX was fracking their Shaw 1G Utica well in Washington Township (Westmoreland County) in early 2019 when they detected “a strong drop in pressure” and stopped fracking (see CNX Hits Major Problem Fracking Utica Well Near SWPA Reservoir). Turns out the well was “communicating” (i.e. losing gas to) several nearby conventional wells. The Pennsylvania Dept. of Environmental Protection (DEP) finally assessed a fine for that episode late last week: $175,000.
Read More “CNX Agrees to $175K Fine for Faulty Utica Well in SWPA”
CNX Resources issued its 2Q20 update yesterday. The company reports a $146 million net loss. Production in 2Q20 was 114.5 Bcfe (billion cubic feet equivalent), down from 134.5 Bcfe in 2Q19 due to curtailments. Average daily production in 2Q was 1.26 Bcf/d (billion cubic feet per day), down from 1.35 Bcf/d a year earlier. The company shut-in some of its production due to COVID and low prices. They will restore all shut-in production by November.
Read More “CNX 2Q Update: Production Down, Curtailments Gone by November”
Yesterday MDN brought you the news that CNX Resources is buying out the balance of what they don’t own in their pipeline subsidiary CNX Midstream (see CNX’s Competitive Advantage: Owning Its Own Pipelines). Our take on the news is that by owning their own pipeline network CNX has a distinct competitive advantage. We heard in pretty short order a different view from a couple of MDN readers…
Read More “A Different View re CNX’s Move to Buy Rest of Pipeline Subsidiary”
We love a story about an individual or company that defies conventional wisdom and succeeds by charting its own course separate from the herd. Diversified Gas & Oil (DGO) is one such company. DGO buys up older conventional (and shale) wells in Appalachia, making money off the “long tail” of low production (see Diversified Zags, Finds Profit in Appalachian Conventional Wells). Another company charting a different path is CNX Resources. Yesterday we told you CNX is buying out the rest of its midstream/pipeline subsidiary (see CNX Resources Buying/Merging in Rest of CNX Midstream for $357M). Why is CNX buying back their pipeline operations, when so many others are selling pipeline operations?
Read More “CNX’s Competitive Advantage: Owning Its Own Pipelines”
CNX Midstream began life as a joint venture between CONSOL Energy (the forerunner to CNX Resources) and Noble Energy, and was called CONE Midstream (“CO” from CONSOL and “NE” from Noble Energy). Noble decided to completely exit the Marcellus/Utica and ended up selling their half of CONE to CNX for $305 million in early 2018 (see CNX to Buy Noble’s 50% Share of CONE Midstream for $305M). The company was then renamed CNX Midstream (see CONE Midstream Gets a New Name: CNX Midstream Partners). Although CNX owns a majority of CNX Midstream, there has (until now) remained a certain portion owned by outside investors. That will soon come to an end as CNX is buying out the remaining portions it doesn’t own for $357 million. CNX Midstream will now be owned 100% by CNX Resources.
Read More “CNX Resources Buying/Merging in Rest of CNX Midstream for $357M”
On Friday the Pennsylvania Dept. of Environmental Protection (DEP) announced it has fined CNX Resources and its subsidiary CNX Midstream $310,000 for two incidents in which 65 barrels (2,730 gallons) of non-toxic brine (salty water) leaked into the ground and 43 gallons of non-toxic drilling mud leaked into a creek. The DEP says CNX did “not adequately maintain erosion and sedimentation best management practices.”
Read More “PA DEP Fines CNX $310K for Minor Violations re Pipe Construction”
We have a MUST-SEE video (below) from a virtual event hosted yesterday. This year’s edition of the annual Petrochemical Development conference and expo held in Pittsburgh went virtual this year because of the coronavirus. Yesterday was Day One of the event, and one of the opening keynotes was delivered by CNX Resources CEO Nick DeIuliis. His 21-minute talk was dynamite! Nick delivered a talk titled, “Nine Irrefutable Energy Truths and a Critical Call to Action.” In his talk, he unapologetically spoke about and defended the superiority (morally, ethically, economically) of carbon-based energy.
Read More “CNX CEO Defends Carbon, Issues Call to Action for O&G, Petchem”
We feel as though we keep talking to an empty room. That nobody is hearing, or if people are hearing, they don’t believe what we say when we tell you that Joe Biden and the people surrounding him are promising the total destruction of the fossil fuel industry in the U.S.A.–if he gets elected. All you have to do is listen to what he says! We’re not exaggerating nor overstating the case. If you work for the oil and gas industry, if you sell to the industry, if you care about freedom, you simply cannot vote for Joe Biden for President. To do so is to vote for the destruction of our country as we know it. The stakes are that high! Biden is signaling loud and clear his intent to block all new pipeline and LNG projects if he gets elected.
Read More “Joe Biden Signals He’ll Block of All New Pipelines, LNG Plants”
A word you will likely see a lot more of in quarterly updates by oil and gas drillers across the country is the word “impairment.” It’s an accounting term that means the value of an asset (leased acreage or wells) is adjusted, down, to reflect a company’s best guess as to how much revenue that asset can generate. We wrote about impairments back in 2015 (see A Basic Guide to Understanding “Impairments” for Marcellus/Utica). Largely because of impairments, nine of the biggest Marcellus/Utica drillers cumulatively lost $2.6 billion in value (on paper) during the first quarter of this year. However, two of the nine had no impairments. And one of the nine made a profit in 1Q20. Can you guess which one?
Read More “9 Big M-U Companies Lost $2.6 Billion in Value During 1Q20”