Ohio Landowners Sue Encino Energy for Shorting Royalties

Landowners in Carroll and Columbiana counties (Ohio) have filed a class action lawsuit against Encino Energy claiming the company underpaid oil and natural gas royalties. 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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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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Encino Sends 70%, Ascent Sends 33% of Utica Gas to Gulf Coast

Last week, in addition to the petchem event held in Pittsburgh, Hart Energy held their DUG East (Developing Unconventional Gas) event in Pittsburgh. Although MDN did not attend DUG, MDN friend Rick Stouffer from Kallanish Energy did. Rick caught some interesting news about two of the biggest drillers in the Ohio Utica–Ascent Resources and Encino Energy. One of the eye-opening stats Rick reports is that Encino is sending a full 70% of their Utica production to the Gulf Coast. In addition, most of Ascent’s production goes out of the region too–one-third to the Gulf Coast, one-third to the Midwest, and one-third to the East Coast.
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Former Range Exec Who Went to H&H is Now at Encino

Last October MDN told you that the man largely responsible for the huge success of Range Resources in drilling in the Marcellus Shale, Range’s former senior vice president in charge of the Marcellus, John Applegath, left retirement to head on over to Huntley & Huntley, to helm the drilling program there (see Retired Range VP of Marcellus Heads to Huntley & Huntley as COO). He didn’t stay long.
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Encino Says They’ll Do it Better in the Utica than Chesapeake Did

Last Friday MDN reported that Encino Energy CEO Hardy Murchison and COO Ray Walker (formerly of Range Resources) spoke at the Ohio Oil & Gas Association (OOGA) 72nd Annual Meeting in Columbus (see Encino Belle of the Ball at OOGA’s 72nd Annual Meeting). We have two more reports on their talk that mentions things not covered in the first report.
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Encino Belle of the Ball at OOGA’s 72nd Annual Meeting

The Ohio Oil & Gas Association (OOGA) is currently holding their 72nd Annual Meeting in Columbus, Ohio. U.S. Vice President Mike Pence will address the event today. Cool! Kallanish Energy is at the event. They report that Encino Energy, which bought out all of Chesapeake Energy’s considerable Ohio Utica assets last year, was the “center of attention” yesterday.
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Encino Establishes Utica HQ in Stark County – Now Hiring

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). Since that time, we’ve had a number of inquiries from readers asking, will Encino pick up where Chessy left off and maybe expand Ohio drilling?
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Encino Plans to Continue Expanding in OH Utica

Earlier this month Encino Acquisition Partners (i.e. Encino Energy) completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion, originally announced in July (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The deal includes all of Chesapeake’s 933,000 Ohio acres–with 320,000 net Utica acres–and 920 operated and non-operated Ohio Utica wells. With the deal now done, Encino is signaling good things are ahead. Encino President and CEO Hardy Murchison recently spoke with S&P Global Platts about the company’s plans for the future. You’ll be interested to know that Encino is already evaluating more acreage they want to buy in the Ohio Utica, to further expand their already-massive new operation.
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Encino Takes Over from Chesapeake in Ohio Utica; Big Plans

The deal is done. On Monday, Encino Acquisition Partners completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion, originally announced in July (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The deal includes all of Chesapeake’s 933,000 Ohio acres (with 320,000 net Utica acres) and 920 operated and non-operated Ohio Utica wells. With the deal now done, Encino is signaling good things are ahead. The company will keep its Utica regional headquarters in Louisville, OH–right where Chesapeake had it. Encino has and will continue to operate two active drilling rigs in the Utica this year, and add a third rig next year. Encino CEO Hardy Murchison recently spoke about the company’s Utica plans moving forward. It has folks in Ohio excited!
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Chesapeake’s $2B Exit from Ohio Utica “Is a Good Thing”

Last week MDN shared the blockbuster news that Chesapeake Energy is exiting the Ohio Utica, selling all of its Ohio assets for $2 billion (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The buyer is Encino Acquisition Partners, a joint venture between Encino Energy and the Canada Pension Plan Investment Board. At the time we speculated this may be good news for Ohio’s landowners signed with Chesapeake–that perhaps landowners now stand a better chance of seeing new drilling. That was just speculation/hope on our part. Looks like we’re not the only ones thinking that way. A couple of industry experts are saying the same thing. One of them said Chesapeake’s sale and exit “is a good thing” because it means Encino will sink money into new drilling programs in a way that Chesapeake, larded up with debt, could not…
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Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B

In what is perhaps the second biggest thing to hit Ohio since maybe the plow (the first being the Utica Shale, borrowing a phrase from Aubrey McClendon), Chesapeake Energy announced yesterday it is selling ALL of its 933,000 Ohio acres (including 320,000 net Utica acres) and 920 operated and non-operated Ohio Utica wells to Encino Acquisition Partners for $2 billion. This is truly big news! Encino Energy is a young company, founded in 2011, headquartered in Houston, TX. Last year Encino formed a partnership with Canada Pension Plan Investment Board to form Encino Acquisition Partners. It is the Encino subsidiary that is buying Chessy’s Ohio Utica assets. The burning question is, Will Encino drill more wells? Or just sit on its new acquisition? Based on how they describe themselves, we think Encino is going to pursue an active drilling program in the Ohio Utica. According to their own boilerplate, the company’s mission is to, “focus on driving long-term investor returns by acquiring and developing high-quality assets with an established base of production and a large, low-cost development inventory across the lower 48 states of the United States.” They’ve certainly acquired a high-quality asset with an established base of production and it has a large, low-cost development inventory. All the boxes are checked in buying Chesapeake’s Utica assets. So we’ll hold Encino to their word that they will “develop” it–meaning drill new wells. Chesapeake plans to use the $2 billion to pay down some of their ginormous debt…
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