Upstream M&A Deals Slow in 2Q, Two of Top 3 Deals Located in M-U
According to Enverus Intelligence Research, the upstream M&A (mergers and acquisitions) sector “hit the brakes” during the second quarter, falling 21% quarter-over-quarter to $13.5 billion. There were two Marcellus/Utica deals in the top five. Actually, our two deals were in the top three. The announcement by EOG Resources cutting a deal to buy Encino Energy in the Ohio Utica for $5.6 billion was the #1 highest value M&A deal in upstream O&G during 2Q (see HUGE Utica News: EOG Resources Buys Encino Energy for $5.6 Billion). The #3 highest value deal was EQT’s purchase of Olympus Energy for $1.8 billion (see EQT Buying Olympus Energy for $1.8 Billion; 90K Acres, 0.5 Bcf/d). Read More “Upstream M&A Deals Slow in 2Q, Two of Top 3 Deals Located in M-U”
For the week of July 7 – 13, the number of permits issued to drill new wells in the Marcellus/Utica remained the same as the previous week. There were 21 new permits issued across the three M-U states last week. The Keystone State (PA) issued seven new permits. Range Resources secured three permits, spread across Beaver and Washington counties, in the southwestern part of the state. Seneca Resources received two permits in Tioga County, in the northeastern part of the state. Greylock Energy and Coterra Energy each received a single permit, in Potter and Susquehanna counties, respectively. 
This is an unfortunate part of mergers and acquisitions. The Houston Chronicle is reporting that a WARN notice (Worker Adjustment and Retraining Notification) filed by Encino Energy indicates that 121 Encino workers will be laid off on or around August 17. No reason is given, however, EOG Resources is in the process of buying out and merging in Encino’s Ohio Utica assets (see 
EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), owns nearly half a million acres of leases in the Ohio Utica (~460,000 acres). EOG calls its position the “Ohio Utica combo play” and considers it one of the company’s “premium” and “emerging” plays. EOG concentrates on oil drilling in the Utica. During the company’s first quarter 2025 update in early May, we learned that EOG is cutting $200 million from its 2025 spending plan, believing Trump’s tariffs will lead to a slowdown in oil demand. However, the company is not cutting spending or work in the Utica. 
This is news of a lawsuit with implications for drillers, rights owners, and surface land owners that we were not previously aware of. EOG Resources, an oil and gas drilling giant with nearly half a million leased acres in Ohio, holds drilling rights on land owned by Lucky Land Management in Ohio—we could not determine the exact location or county. The two sides couldn’t agree on whether EOG’s rights to drill included the right to drill from Lucky Land’s surface out to adjacent properties as well. So EOG sued. EOG then asked a district court to grant a preliminary injunction, allowing the company to access the land to cut down trees and begin constructing wells. The district court did so, finding that EOG would probably succeed on the merits of the case. 
Wow! Is this the Trump effect? For the week of Jan 13 – 19, permits issued in the Marcellus/Utica to drill new shale wells achieved levels we haven’t seen in, oh, about four years. There were 41 new permits issued last week, up significantly from 27 issued the week before and 30 issued two weeks before. The Keystone State (PA) issued a whopping 25 new permits, with 17 (!) going to EQT spread across Greene and Washington counties. Another six permits went to Chesapeake Energy (now Expand Energy) in Bradford County. One permit each went to Range Resources and Apex Energy in Beaver and Westmoreland counties, respectively. 
Oil wildcatting is the process of drilling exploratory wells in areas with little to no history of oil and gas production. Wildcatting is a high-risk activity that involves drilling in unproven or fully depleted areas. Wildcat wells are often drilled far from other wells and without the use of well logs or other geological data. Wildcatting can be profitable—or spectacularly unprofitable. A recent Hart Energy article reports that “wildcatting is back.” The very first part of the article focuses on wildcatting that is happening in the Ohio Utica Shale.