Weekly Shale Drilling Permits for PA, OH, WV: Nov. 16-20

Last week Pennsylvania issued 11 new shale well drilling permits, all but one of them in the northeastern (dry gas) part of the state. Ohio issued one new permit, and West Virginia issued 2 new shale well permits.
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S&P Interviews Toby Rice: Thoughts on EQT, Chevron, Consolidation

EQT CEO Toby Rice

Toby Rice, CEO of EQT (the largest natural gas producing company in the U.S.), recently granted an interview to a reporter from S&P Global Market Intelligence. The reporter asked some great questions, and Rice provided some interesting answers. Is Biden [if he actually wins] a net positive or negative for shale gas? Who’s EQT’s biggest competitor? What about more consolidation? And what are EQT’s plans for the Chevron assets?
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EQT’s Toby Rice Discusses Chevron Deal, Ponders Pipe Assets

Yesterday Pittsburgh Business Times‘ ace reporter Paul Gough got EQT CEO Toby Rice to open up and talk about the company’s recently announced deal to buy Chevron’s considerable Marcellus/Utica assets (see EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock). Rice said the Chevron deal fits like a glove and investors will love it. He offered some insight into the bidding process and his thoughts on the pipeline assets that are part of the deal.
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Even After Chevron, EQT Still in Hunt to Buy CNX, Other Producers

EQT CEO Toby Rice has been positively chatty lately. He gave a great interview to the Pittsburgh Business Times revealing his thinking with respect to the recently announced Chevron deal (see today’s lead story). He also spoke to Bloomberg reporters. Rice shared his views on further consolidation in the M-U sector. He indicated EQT is still in the hunt for a deal with CNX and possibly other M-U drillers.
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Weekly Shale Drilling Permits for PA, OH, WV: Nov. 2-6

Last week Pennsylvania issued a paltry 3 new shale well drilling permits (lowest we’ve seen in months), Ohio issued a single new permit, and West Virginia issued 5 new shale well permits. All 3 PA permits were issued in Greene County. The OH permit was issued in Carroll County (bit of a surprise). And all 5 WV permits were issued in Tyler County.
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Shale Gas Drillers in M-U Outshine Shale Oil Drillers Elsewhere

An article in yesterday’s Wall Street Journal says there is a “split reality” emerging for U.S. shale drillers. Shale oil drillers are struggling to survive, while shale gas drillers, particularly in the Marcellus/Utica, are slowly seeing signs of financial recovery. The upshot is that you should consider investing in shale gas drillers (and not shale oil drillers).
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Weekly Shale Drilling Permits for PA, OH, WV: Oct. 26-30

Last week Pennsylvania issued 16 new shale well drilling permits, and West Virginia issued 7 new shale well permits. Ohio issued no new shale permits last week.
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After Floating $350M in New Stock, EQT Floats $350M in New Bonds

Last week EQT Corporation announced a deal to buy Chevron’s considerable Marcellus/Utica assets (land and wells) for the lowball price of $735 million (see EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock). EQT also announced, on the same day, they are floating up to 23 million new shares of company stock to help pay the purchase price, hoping to raise ~$350 million. On Friday EQT announced it will float new bonds (debt) to raise another $350 million, also meant to help pay for the Chevron purchase.
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EQT Buys Chevron M-U Assets for $735M, Floats $350M in New Stock

Looks like the rumors were true, at least one of them. Yesterday EQT announced it has cut a deal to buy Chevron’s considerable Appalachian assets for $735 million. The Reuters rumor from September said EQT had offered $750 million (see Sources: EQT Offering $750M for Chevron’s Marcellus/Utica Assets). Also yesterday, EQT floated up to 23 million new shares of stock, on offer for $15.50 per share, attempting to raise ~$350 million to use toward the Chevron purchase.
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Weekly Shale Drilling Permits for PA, OH, WV: Oct. 19-23

For a second week in a row, all three M-U states issued new shale drilling permits last week. Pennsylvania issued 6 new permits, Ohio issued 5 new permits, and West Virginia issued 3 new permits.
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EQT CEO Toby Rice’s No-Comment Comments on Chevron, CNX Rumors

We don’t know how Pittsburgh Business Times ace reporter Paul Gough does it. Yesterday we told you Gough had gotten CNX CEO Nick DeIuliis to, in a roundabout way, discuss the rumor that EQT has floated a takeover offer to his company (see CNX CEO Nick DeIuliis Responds to EQT Takeover Rumor). Gough has done it again, getting EQT CEO Toby Rice to, in a roundabout way, comment on the CNX rumor and on another rumor, that EQT is offering $750 million to buy Chevron’s Marcellus/Utica assets.
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Stop Press: Sources Say EQT Trying to Take Over CNX Resources

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.
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EQT Reopens the Taps; Looks to Dump MVP Contract by Year’s End

Although the big news from yesterday is that EQT is rumored to be eyeing a takeover of CNX Resources (see our lead story today), EQT released its third-quarter 2020 update yesterday with news almost as big. EQT previously announced it is looking to sell its right to ship gas along the Mountain Valley Pipeline (MVP). Yesterday the company said it believes a sale of its MVP capacity will happen by the end of this year.
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Weekly Shale Drilling Permits for PA, OH, WV: Oct. 12-16

What do you know? All three M-U states issued new shale drilling permits last week! That’s the first time in perhaps the last two months all three states issued new shale permits in the same week. Pennsylvania issued 9 new permits, Ohio issued 3 new permits, and West Virginia issued 8 new permits.
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Wall St. Wants No 3Q Spending/Production Growth from M-U Drillers

We are on the cusp of the quarterly earnings reports issued by all publicly-traded companies. In fact, EQT, the largest natural gas-producing company in the U.S., released their numbers and held a conference call this morning (we’ll report on it tomorrow). As Marcellus/Utica drillers get ready to release their third-quarter numbers, analysts on Wall Street are signaling what they want to see.
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