Enerplus Energy Puts 47K Marcellus Acres Up for Sale, Wants $500M

for-sale-sign.jpgCanadian energy company Enerplus Corp owns some 47,000 acres of Marcellus Shale leases in northeastern Pennsylvania representing 841 billion cubic feet (Bcf) of reserves. Most of that acreage, according to the company’s website, is currently “non-operated.” Enerplus does actively drill in the North Dakota Bakken Shale play. Enerplus has a problem: the company is about $530 million in the hole (in debt). The way out of that hole? Sell off their non-operated Marcellus acreage for ~$500 million (works out to be $10,638/acre). Reuters is reporting that three sources have confirmed Enerplus has put their Marcellus acreage up for sale–and the the “for sale” sign has caught the interest from investment firms here at home, and in Asia…
Continue reading

EVEP 2014 – Still Shifting from E&P to Midstream in the Utica

Quick: Which company holds the most combined Utica Shale acreage in OH & PA? Is it Chesapeake? Range? Chevron? Nope. It may surprise you that the #1 acreage holder, according to NGI’s Shale Play Factbook, is EV Energy Partners (EVEP). They own outright, or as part of joint ventures, interest in 903,000 Utica Shale acres (747,000 in OH and 156,000 in PA). MDN has long chronicled how this “accidental” Utica kingpin has been trying to unload their Utica acreage, first in big deals, later in smaller deals (see our EVEP category of stories here).

EVEP is certainly not leaving the Utica. They just want to unload the E&P part of their operation (drilling) and instead concentrate on the midstream (pipelines & processing plants). Yesterday the company issued their fourth quarter and full year 2013 update and management conducted the ubiquitous analyst phone call to explain where the company has been in 2013 and where they are heading in 2014. We have both the update and a portion of the phone call transcript below. Bottom line: More emphasis on midstream in 2014, continued Utica drilling (via jv partners like Chesapeake and EQT), and more sales of Utica acreage when/if buyers come along…
Continue reading

Sudden Resignation of Enerplus President Dana Johnson

Enerplus Corporation, a Denver-based exploration and production company, announced yesterday that its president has resigned “to pursue other opportunities.” No word on what those other opportunities are. According to MDN’s newly published Marcellus and Utica Shale Databook 2012 – Volume 1, Enerplus had active Marcellus drilling operations in both Clinton County, PA and Preston County, WV in 2011.

Continue reading

Enerplus Allocates 24% of 2012 Capital Budget to Marcellus

Enerplus Corp. , a Calgary-based oil and gas producer, has approved an $800 million capital spending program for 2012 the company expects will help boost production 10 percent. Of that $800 million, Enerplus will spend $190 million (24 percent) in the Marcellus Shale, focused primarily on drilling to delineate and retain leases. The target is to drill 20 Marcellus wells in 2012, with 18 of those wells coming on-stream by the end of the year. They plan to nearly triple their Marcellus production from 25 mmcf/d (million cubic feet per day) now to 70 mmcf/d by the end of the year.

Continue reading