Energy Companies

Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Landfills | West Virginia

Antero Agrees to Add Monitoring Near New Frack Waste Landfill
December 20, 2017December 20, 2017

By our reckoning, Antero Resources’ $275 million wastewater recycling facility in Doddridge County, WV is now operational (see Antero’s $275M WV Wastewater Recycling Facility Ready to Launch). In 2015 Antero hired Veolia Water Technologies Inc. to build a new shale wastewater recycling facility in Doddridge County (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The facility, called the Clearwater Facility, can process up to 60,000 barrels of wastewater per day, separating water, salt and radioactive particles. The salt can be sold to municipalities for use as road salt–but frankly there’s not enough of a market to sell it all. And not all of it will be of sufficient quality to be sold that way. So Antero also spent $20 million to build a landfill next to the plant for the salt (see Update on Antero’s $275M Wastewater Facility in WV). In a move we were previously unaware of, a pair of Big Green groups–West Virginia Rivers Coalition and the West Virginia Highlands Conservancy–made a fuss about the landfill. They filed an appeal with the West Virginia Environmental Quality Board back in May challenging the permit allowing the landfill to get built. Antero has just settled the matter by signing an agreement to conduct additional surface water monitoring at and near the landfill site…
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Energy Companies | EXCO Resources

NYSE Threatens EXCO Resources with Stock Delisting – 4th Time
December 18, 2017December 18, 2017

EXCO Resources continues to be a company in trouble. The company flirted with bankruptcy for some time, but in the end they effectively turned over control of the company to creditors this past summer in order to stay out of bankruptcy court (see EXCO Issues 2.7M Shares of New Stock in Lieu of Paying $23M). As we pointed out in early November, the turnaround expert EXCO hired to continue keeping the company out of bankruptcy flew the coop (see EXCO Resources Heading for Bankruptcy, Turnaround Expert Resigns). EXCO is now in trouble with the New York Stock Exchange–for the fourth time! Two times in the past the New York Stock Exchange notified the company it had fallen below the NYSE’s standards for listing and trading the stock because the share price was too low (see EXCO Resources Stock Threatened Again with De-Listing by NYSE). EXCO was able to fix the low stock price by crafting a reverse stock split–combining outstanding shares into fewer shares worth more. Then in August, NYSE threatened EXCO with delisting a third time, but for a different reason: Because EXCO’s market capitalization has fallen below $50 million (see EXCO Resources Receives 3rd NYSE Notice of Delisting). EXCO pulled their bacon out of the fire with NYSE in August by cutting a deal that allows them until February 2019 (yes, 2019) to get company valuation back up over $50 million. So why the new/fourth threat from NYSE? Same reason as the first two times–the stock price is once again in the toilet–well below $1 per share. We doubt they can do another reverse stock split to save the share price this time…
Read More “NYSE Threatens EXCO Resources with Stock Delisting – 4th Time”
Energy Companies | EQT Corp | Statewide WV | West Virginia

EQT Bd Member Continues to Stir Controversy in WV Gov Office Role
December 18, 2017December 18, 2017

Bray Cary

This is a story that won’t go away. Last week MDN told you about the kerfuffle over EQT board member Bray Cary and his work as an unpaid, “informal” adviser to WV Gov. Jim Justice (see EQT Board Member Unofficial Adviser to WV Gov Justice and More on EQT Board Member Serving in WV Gov’s Office). Cary has his own “swipe card” giving him 24/7 access to the Capitol. Cary has been “taking part in policy-oriented meetings.” He’s not on the payroll and he doesn’t answer to anyone. He’s also not subject to the state Ethics Act. Because Cary sits on the EQT board, and EQT has big assets in WV, critics see a conflict of interest. In our own simple words, Bray Cary has become a problem for EQT–a problem that needs to get fixed, fast. He either needs to end his role as unpaid adviser to West Virginia Gov. Jim Justice, or resign from EQT’s board of directors. Continuing to function in both roles is clearly a distraction EQT doesn’t need–and doesn’t want…
Read More “EQT Bd Member Continues to Stir Controversy in WV Gov Office Role”
Allegheny County | Energy Companies | Industrywide Issues | Litigation | Olympus/Huntley & Huntley | Pennsylvania | Regulation | Seismic Testing

Monroeville Council Approves Seismic Testing Court Settlement
December 18, 2017December 18, 2017

Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance is meant to hassle Huntley & Huntley (H&H), which wants to conduct seismic testing in two rural areas of the municipality. In October, the contractor hired to do the seismic work for H&H, Geokinetics, took Monroeville Council to court over their punitive seismic ordinance (see Monroeville Seismic Testing Ordinance Challenged in Court). Both sides compromised and in November settled the case (see Monroeville Seismic Testing Ordinance Court Case Settled). Although the court case was settled, there is a final step required before the thumper trucks can begin their work. Monroeville Council must officially vote to accept the court agreement with the revised regulations. That vote happened last week…
Read More “Monroeville Council Approves Seismic Testing Court Settlement”
Coterra Energy (Cabot O&G) | Crime | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Asks Court for Stiffer Fine Against NEPA Lawbreaking Anti
December 18, 2017December 18, 2017

A little-known (outside of northeast Pennsylvania) anti-driller, Vera Scroggins, was fined $1,000 in April 2015 in Susquehanna County court (see PA Anti-Driller Fined $1K for Trespassing on Cabot O&G Site, Jail?). Vera’s biggest claim to fame is her potty mouth treatment of FrackNation filmmaker Phelim McAleer (watch it here). She is a repeat trespasser on Cabot Oil & Gas drilling sites and has been warned, repeatedly, to stay off their land–for her own safety and the safety of others. Scroggins runs so-called tours where she shows New York City celebrities and other urbanites (who don’t know the difference between a cow’s udder and a roof gutter) the gas fields of Susquehanna County, claiming drilling operations somehow harm local residents. In 2015, the judge had enough. He said at the hearing that Vera had 45 days to pay the $1,000 fine for her latest violation and if she didn’t, she was going to jail. Apparently she paid. However, she’s at it again. Cabot says Vera has continued her trespassing ways and is now (allegedly) in contempt of court for disobeying the judge’s orders. Cabot is requesting Vera be find $5,000 and chip in money for their legal fees. Some people never learn…
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CNX Resources | CONE Midstream | Energy Companies | Energy Services | Industrywide Issues | M&A | Noble Energy | Pipelines

CNX to Buy Noble’s 50% Share of CONE Midstream for $305M
December 15, 2017December 31, 2017

On Monday MDN shared news with you that we believe was exclusive news–nobody else picked up on it. The news was that Noble Energy’s original plan to sell its 50% stake in CONE Midstream to Quantum Energy Partners for $765 million, announced back in May, is in trouble (see Noble’s 50% CONE Midstream Sale in Trouble – Shopping Deal to CNX). We told you that according to a recent Securities and Exchange Commission filing Noble had begun negotiations with CNX Resources (formerly CONSOL Energy), which is the other 50% owner of CONE, to sell Noble’s share to them. It seems we were prophetic. This morning CNX issued a press release to announce they have cut a deal to buy Noble’s 50% CONE share–for $305 million. That’s 40% of the deal price Noble previously worked out with Quantum. Must be it’s a buyer’s market for midstream assets…

12/18/17 Update: On Friday, following CNX’s announcement about buying the rest of CONE from Noble Energy, Noble also issued an announcement (below). Noble’s announcement amusingly leaves out the purchase price–less than half of the previously deal they had with Quantum.
Read More “CNX to Buy Noble’s 50% Share of CONE Midstream for $305M”
Energy Companies | EQT Corp

EQT Drills Longest Marcellus Well Ever, Reveals 2018 Plans
December 14, 2017December 15, 2017

EQT, the country’s largest natural gas producer after buying out Rice Energy, announced yesterday their plans for 2018. The company will spend a massive $2.4 billion on exploration & production (drilling)–all of it in the Marcellus/Utica region. EQT is spending 60% more money spent on drilling in 2018 than they did in 2017. What will $2.4 billion buy you? In the Marcellus, EQT will drill 139 wells (111 in PA and 28 in WV). In the OH Utica, EQT will drill 38 wells. And in the Upper Devonian (in PA), EQT will drill 19 wells. EQT plans to bring online 160-170 wells in the Marcellus, 40-50 wells in the Utica, and 20-25 in the Upper Devonian. However, all of the reporting we’ve seen on yesterday’s announcement from EQT fails to highlight what we consider to be some of the biggest news of the day: EQT has become the reigning champ for drilling the longest Marcellus Shale well. The previous reigning champ was Range Resources, drilling a Marcellus well 15,000 feet long (see Range Resources Drills Longest Marcellus Well Ever – in Washington Co.). EQT has sailed far beyond the Range well by drilling a well 17,400 feet long in Washington County, PA (as was Range’s monster Marcellus well.) The EQT well, called Haywood H18, was brought online earlier this week. And that’s not all. EQT plans to drill 27 more monster Marcellus wells with laterals longer than 17,000 feet in 2018! Congrats to the biggest producer in the U.S., who now has the biggest Marcellus well ever drilled!…
Read More “EQT Drills Longest Marcellus Well Ever, Reveals 2018 Plans”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | M&A | Rice Energy | Rice Midstream

EQT Begins Process of Separating Midstream…into New Company?
December 14, 2017December 14, 2017

Yesterday EQT released details about their plans for 2018 (see our lead story today, EQT Drills Longest Marcellus Well Ever, Reveals 2018 Plans). Plenty of news sources covered that news. However, EQT Midstream, the pipeline subsidiary of EQT, also released an announcement, which received almost no media coverage. And yet there is, for us, some big news in the EQT Midstream announcement. As you know by now, EQT recently bought and merged in Rice Energy, creating the largest onshore natural gas producing company in the United States (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). EQT bought not only Rice the driller, but Rice the midstream company too. EQT has it’s own EQT Midstream subsidiary. And yet, EQT (the driller) still owns a number of midstream/pipeline assets, on paper, separate from EQT Midstream. Same with Rice Energy–they had Rice Midstream Partners as a subsidiary. It’s all kind of a mish mash–with pipeline assets spread around four (or more) different entities on paper. Yesterday’s announcement by EQT Midstream said (a) the EQT parent company is considering “dropping down” (shifting ownership on paper) for all remaining midstream assets to EQT Midstream, and (b) EQT is also considering combining EQT Midstream and Rice Midstream Partners into one single entity–one division for all midstream assets. Which certainly makes sense. Why not tidy up the operations and get everything under one umbrella? Except we think there may be another reason for combining all of the midstream assets into one, neat, lovable bundle: spinning off the midstream division into its own standalone company, completely separate from the EQT parent…
Read More “EQT Begins Process of Separating Midstream…into New Company?”
Energy Companies | EQT Corp | Statewide WV | West Virginia

More on EQT Board Member Serving in WV Gov’s Office
December 13, 2017December 13, 2017

Yesterday MDN told you about EQT board member Bray Cary and his work as an unpaid, “informal” adviser to WV Gov. Jim Justice (see EQT Board Member Unofficial Adviser to WV Gov Justice). WV media continues to track (hound) this story. The bone of contention is that Cary, who is a long-time WV resident (lives in Charleston) appears to have unfettered access to Justice. Cary has his own “swipe card” giving him 24/7 access to the Capitol. Cary has been “taking part in policy-oriented meetings.” He’s not on the payroll and he doesn’t answer to anyone. He’s also not subject to the state Ethics Act. And because Cary sits on the EQT board, and EQT has big assets in WV (and a big interest in pushing for a forced pooling law), critics see a conflict of interest. But is there? Yes, Cary sits on the EQT board, but that’s just one small piece of Cary’s background and active life. Cary is “best known for his former role as an executive with West Virginia Media.” He’s a player. He’s connected. An important guy. And Gov. Jim Justice wants to bend his ear on occasion, to get Cary’s advice and feedback. The real issue is not will/does Cary’s presence give EQT some sort of unfair advantage in the highest levels of WV state government. The real issue is the *appearance* of a conflict of interest–whether there actually is one or not…
Read More “More on EQT Board Member Serving in WV Gov’s Office”
Eclipse Resources | Energy Companies | Pennsylvania | Potter County | Tioga County (PA) | Travis Peak Resources

Eclipse Buys 44.5K “Core” Utica Acres for $93.7M…in Central PA!
December 12, 2017December 12, 2017

Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, drills almost exclusively in the Ohio Utica. That is, until now! Yesterday Eclipse announced it has purchased 44,500 acres of oil and gas leases and producing wells in Tioga and Potter counties in north central Pennsylvania for $93.7 million–which works out to be ~$1,900/acre (very low cost). The aim of the purchase is to drill in the Pennsylvania Utica Shale. For the past few years MDN has heard about/highlighted stories of drillers going after the Utica Shale in PA–particularly in Tioga County (see Another Impressive Utica Well Pops Up…in Pennsylvania!). Eclipse cut a deal to buy the land and wells from Travis Peak Resources. We wrote about Travis Peak in December 2015 (see The 411 on New Driller Firing Up Rig in Tioga County, PA). Travis Peak, based in Austin, TX, was founded in November 2013 by a group of experienced guys who previously worked for companies like Amoco, Exxon, Pioneer Natural Resources and Newfield Exploration. A small company consisting of industry pros with financial backing from EnCap Investments. The best part of this deal for Eclipse? No money changed hands. Eclipse issued shares of stock in the company in return for picking up the acreage/wells. Also part of yesterday’s announcement by Eclipse is that they have picked up “outstanding equity interests” in small Marcellus/Utica pipeline company Cardinal Holdings–paying $18.3 million in cash. We have the full announcement below, a copy of the Eclipse presentation with lots of pretty maps and charts, and commentary about the Eclipse purchase…
Read More “Eclipse Buys 44.5K “Core” Utica Acres for $93.7M…in Central PA!”
BKV/Banpu | Energy Companies | Pennsylvania | Warren Resources | Wyoming County (PA)

Banpu/Kalnin Buys 5,289 Ac & 35 Wells in NEPA Marcellus for $105M
December 12, 2017December 12, 2017

Banpu Pcl, Thailand’s largest coal producer, in cooperation with their American-based partner Kalnin Ventures, has just snapped up their sixth piece of the Marcellus Shale–once again in northeast Pennsylvania. Kalnin announced this morning they have cut a deal, using $105 million of Banpu’s money, to buy an unspecified amount of Marcellus acreage and 35 producing shale wells in Wyoming County, PA from Warren Resources. Based on a previous Kalnin story, yesterday’s announcement, and the Warren Resources website, MDN believes the total acreage involved is 5,289 net acres (6,982 gross). Which doesn’t seem like much. But you have to view the purchase in context. That $105 million paid is mostly for the producing 35 wells (roughly $3M per well). Plus, the acreage is no doubt adjacent to previous acreage and wells Kalnin/Banpu bought in Wyoming County back in May (see Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA). It was just last week we spotted and highlighted a story that quotes Banpu’s CEO Somruedee Chaimongkol as saying her company is considering “putting more money on top of the $500 million” already committed for shale gas purchases in the Marcellus (see Thailand’s Banpu Looking to Invest More Money in NEPA Marcellus). The “considering” period didn’t last long! This sixth investment now puts Banpu’s investment stake in the NEPA Marcellus at $522 million, with no end in sight…
Read More “Banpu/Kalnin Buys 5,289 Ac & 35 Wells in NEPA Marcellus for $105M”
Ashland County | Coterra Energy (Cabot O&G) | Energy Companies | Ohio

Cabot O&G Considers Drilling in Ashland County, OH
December 12, 2017December 18, 2017

Important Update (12/18/17) – A highly placed source in Cabot Oil & Gas called MDN to let us know Cabot is not looking to drill the Utica Shale in Ashland County, OH, as we first presumed. Instead, Cabot is looking to drill LOWER than the Utica–in a different rock layer. We were not told which layer. This is purely exploratory. Sometimes you hit and sometimes you miss. Something about the area has caught Cabot’s attention–but that doesn’t mean it will pan out. Stay tuned!

This, for us, is HUGE news. Cabot Oil & Gas is sniffing around the possibility of drilling ~~in the Ohio Utica~~. We suppose it shouldn’t surprise us, but it does. Especially since we haven’t heard or read a word about Cabot’s Utica interest–until now. Put yourself in Cabot’s shoes–what comes next? After all, they’ve been drilling in Susquehanna County, PA for the last 10 years. Sooner or later Cabot will run out of new places to sink wells. Cabot previously fiddled around in the Eagle Ford Shale play in Texas, drilling for oil, but that hasn’t panned out. In May, MDN picked up on a little bit of information slipped into Cabot’s first quarter update–the company is spending $125 million THIS YEAR on buying leases and drilling test wells, in plays they weren’t ready to disclose at that point (see Cabot O&G 1Q17 – Oil Turning Cabot’s Eye Away from Marcellus). The only hint we had about where Cabot may be looking was this statement: “our focus is going to be oil.” We now know where at least some of that $125M is going–to Ashland County, OH. Cabot is looking to drill an exploratory well (or two or three) in Ashland, to see what they find. We think Cabot’s choice of location interesting. Ashland County is located well west (and north) of Ohio counties currently drilled for Utica oil and gas. We’ve checked the statistics in our forthcoming Marcellus & Utica Shale Almanac. Devon Energy got a single permit and spud (began to drill) a single well in Ashland’s Utica Shale back in 2011. Since that time (and through the end of 2016) no other permits were issued, and there’s been zero production from that single Devon well. It’s likely Cabot is shopping for a bargain–go where no one else is going, to see if they can make the magic happen once again that they’ve experienced in northeast PA. The reason we know about Cabot’s dalliance in Ashland is because local antis in the county are up in arms over the prospect of Cabot “fracking” the county…
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Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot O&G Asks Judge to Make Dimock Anti Pay for Extortion, Slander
December 12, 2017November 4, 2019

Cabot Oil & Gas is tired of being sued, and slandered, by people like Dimock resident Ray Kemble and his ambulance-chasing lawyers. So in August Cabot sued back–for $5 million (see Cabot O&G Countersues Dimock Anti, Lawyers). Kemble lives in Dimock Township, in Susquehanna County, PA. Kemble and other families claimed Cabot’s drilling in the area (10 years ago) caused problems with their water wells–a claim strongly refuted by Cabot.
Read More “Cabot O&G Asks Judge to Make Dimock Anti Pay for Extortion, Slander”
Energy Companies | EQT Corp

EQT Board Member Unofficial Adviser to WV Gov Justice
December 12, 2017December 12, 2017

EQT, now the largest natural gas producer in the United States since adding Rice Energy to the fold, has major assets in West Virginia–wells and leased acreage. The company also has a lot of influence in the state–in the judiciary (see WV Supreme Court Reverses Itself, Post-Production Deductions OK), the legislature (see WVONGA Makes Plans to Push Forced Pooling Lite in 2018), and now in the executive branch. News has just broken that EQT board member Bray Cary is an unpaid, “informal” adviser to Gov. Jim Justice–a situation that’s raising some eyebrows…
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Allegheny County | Energy Companies | Industrywide Issues | Olympus/Huntley & Huntley | Pennsylvania | Regulation

Plum, PA Passes Ordinance to Allow Fracking – Antis Livid
December 12, 2017December 12, 2017

In October, local officials in Plum, PA (Allegheny County) approved a plan by Huntley & Huntley (H&H) to drill a series of Marcellus wells on a single well pad in their municipality (see Plum, PA Gives Huntley & Huntley Green Light for Shale Drilling). Plum’s leaders got blowback from some residents (antis) over their decision to conditionally approve H&H’s request. In Plum, fracking is allowed in any zone if a conditional use is granted. That’s what happened in October–the Plum Council issued a conditional use exception for H&H to drill on 92 acres near Coxcomb Hill Road in Plum. To avoid dealing with more such conditional cases, Plum Council cooked up proposed changes to zoning ordinances (ordinances which haven’t been updated since 1993) that will only allow fracking in rural residential and industrial zones (see Plum, PA Officials Hold Hearing on New Restrictions for Fracking). At the time, H&H said the changes would be too restrictive. However, they appear to have adopted the “half a loaf is better than no loaf” philosophy, opting to support the new rules. Yesterday Plum Council moved ahead and adopted the new rules. Antis blew a gasket. They think the new rules are still too lenient because it allows drilling in rural residential areas. One mouthy anti planted herself in front of the microphone yesterday and refused to move, threatening to sue everyone and everything related to the vote “if my family, my property, myself is damaged in any way.” Whatever. Here’s what went down yesterday in Plum…
Read More “Plum, PA Passes Ordinance to Allow Fracking – Antis Livid”
Energy Companies | New York | PDC Energy | Statewide NY

NY State Retirement Fund Invests More Money in Fracking Co.
December 12, 2017December 12, 2017

We found this story illustrative of the rank hypocrisy so prevalent in our beloved home state of New York. Even the most cursory follower of shale energy knows that our corrupt governor, Andrew Cuomo, decided to ban shale fracking in the Empire State in 2015 (see It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY). Since that time Cuomo has acted like the tin-pot, despot dictator he is, by moving to block pipelines coming into the state that carry fracked natural gas (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline and Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). Cuomo recently lost one such battle, attempting to block a 7.8 mile pipeline from being built to a gas-fired electric plant in Orange County (see Millennium Begins Building 7.8 Mile Pipeline in Orange County, NY). Instead of using evil, filthy, vile “fossil fuels” like natural gas, Cuomo prefers to shower billions to his friends who promise they will bring solar and wind to the state. Cuomo has implemented a policy that demands 50% of New York’s electric supplies come from solar and wind by 2030–a delusional fantasy. The New York State Common Retirement Fund is the state’s ginormous pension fund for state workers (including public school teachers)–with some $140 billion of investments. Anti-drilling New York State Comptroller Thomas DiNapoli is the sole trustee in control of the fund, overseeing its investments. The fund invests in plenty of oil and gas companies–i.e. frackers–which we were once again reminded of when spotting a news clip that the Fund has just increased its holdings in PDC Energy–a shale fracker…
Read More “NY State Retirement Fund Invests More Money in Fracking Co.”