Stock Price for M-U Drillers Surprisingly Resilient in 2024
In 2024, natural gas prices have spent almost the entire year under $3.00 per Mcf (thousand cubic feet), including a few months under $2.00/Mcf. You would think such low prices would have a negative effect on the stock prices of publicly traded Marcellus/Utica gas producers. Not so! Stock prices for our drillers have remained “remarkably stable.” In fact, Antero Resources’ price is actually UP this year. Range Resources is flat for the year so far. Others, like EQT and Coterra Energy, are down just a smidge. Given the disadvantages of the M-U basin—primarily the lack of pipeline takeaway capacity and the long distance our molecules must travel to Gulf Coast LNG export facilities—it’s surprising that stock valuations for our drillers have not been negatively impacted. Read More “Stock Price for M-U Drillers Surprisingly Resilient in 2024”
In July, MDN brought you the news that the largest natural gas producer in the country, EQT Corporation, totally focused on drilling in the Marcellus/Utica, was still curtailing (intentionally reducing) some of its M-U production through the second half of 2024 (see 
EQT CEO Toby Rice has been in New York City for the city’s so-called Climate Week. Rice (EQT) is a member of the Partnership to Address Global Emissions. Bloomberg is reporting on several comments made by Rice that are intriguing and insightful—comments about the coming important role of AI data centers, when the price of natural gas may begin to rise again, and just how high the price may hit. Buckle up as we crawl inside the head of Toby Rice… 
The Susquehanna River Basin Commission (SRBC) published a notice in the Saturday edition of the Pennsylvania Bulletin that says the SRBC’s Executive Director recently approved or renewed 24 general water use permits for shale gas drilling pads in Bradford, Cameron, Clearfield, Clinton, Lycoming, Susquehanna, Tioga and Wyoming counties in the Keystone State (full list below). Approval by the Executive Director is the first step in the process. Each permit will also require a separate water withdrawal approval before water begins to flow from the Susquehanna (and its tributaries) to shale well pads. 
There were 15 permits issued to drill new shale wells in Marcellus/Utica for the week of Sept. 9 – 15, up one from the previous week. The Keystone State (PA) had six new permits, and all six went to EQT for a single well pad in Greene County. The Buckeye State (OH) had nine new permits. The top recipient in OH was Southwestern Energy, which received six permits for Monroe County. Ascent Resources had two permits in Harrison County, and INR (Infinity Natural Resources) had a single new permit issued for Guernsey County. The Mountain State (WV) had a big, fat, zero new permits even though it’s been adding rigs like crazy! 
In May, the socialists of the European Union (EU) adopted into law a new regulation aimed at tracking and reducing methane emissions within the energy sector (see 
Toby Rice, CEO of EQT Corporation, currently the largest natural gas producer in the U.S., spoke yesterday at the Gastech event in Houston. Rice expressed his view that the Henry Hub price for natural gas will remain below $3/MMBtu “in the short term.” He also had thoughts on how long companies like his will continue to curtail natgas production. Rice said curtailments will “ease by next year” when more LNG exports begin to pick up. Said another way, Rice expects to continue holding back at least some supply for the balance of this year. 
We spotted a report about an aboveground pipeline that flows shale wastewater that sprung a leak and released an estimated 12,600 gallons of brine (salty water from deep below the surface) on the ground in Gilmore Township, Greene County, PA. The pipeline is owned by EQM Gathering, another name for Equitrans Midstream, which is now owned by EQT. The leaking pipeline connects to the Trust Well Site owned by EQT. It sure sounds like a serious spill (12,600 gallons) with the potential to contaminate local water supplies—until you dig into the state Dept. of Environmental Protection’s (DEP) report on the incident. 
The Ohio Department of Natural Resources (ODNR) released production numbers for the second quarter of 2024 yesterday. The story the numbers tell continues to be about Utica oil, which continues to rise each quarter. Ohio’s total oil production during 2Q24 was 8.01 million barrels, up 23% from 2Q23’s 6.5 million barrels and up 11% from 1Q24’s 7.2 million barrels. The story of oil in the Buckeye State can’t be told apart from Encino Energy (EAP), which produced nearly half of all the state’s oil during 2Q24. As for natural gas production, it’s no surprise it went down slightly in 2Q24, given the current low price for gas. The state produced 526.6 Bcf in 2Q24, down 3.7% from 2Q23’s 547.0 Bcf, and down 1.4% from this year’s first quarter number of 534.0 Bcf. MDN pulled the numbers from the ODNR quarterly report and produced top 25 lists for both gas and oil wells.
In July 2022, MDN brought you news of a possible frac-out, or “inadvertent return” that happens when drilling mud pops out of places where it’s not supposed to — places outside the borehole being drilled (see 
The RealClear Media Group has a suite of online publications that are just terrific. Among them is 
There’s just no way to sugarcoat the fact that the low low price for natural gas is having an impact on shale drillers in the Marcellus/Utica. According to an analyst with RBN Energy, a price plunge to near the $2/MMBtu level in early 2023 “crippled” financial results for the companies RBN monitors that are gas-focused (namely M-U companies). However, most producers on the RBN list have remained in the black through spending less and cutting back on production. Down but far from out. How did the major M-U companies that are publicly traded perform in 2Q24? We have the numbers below. 
On May 1, a section of the 303-mile Mountain Valley Pipeline (MVP) ruptured during final pressure testing in Roanoke County, Virginia (see