Range Resources 3Q – Production Up Slightly, Spending Down

Spending went down, but natural gas production went up slightly (3%) at the very first Marcellus driller, Range Resources, in 3Q19. The company previously forecast it would spend $756 million in 3Q but spent $736 million instead. The savings came “as a result of continued efficiency gains, water savings, and service cost improvements.” The company connected 22 new wells in the Marcellus to production in 3Q19, the same number they connected in 3Q18. Our takeaway: the company is doing more, producing more, with less resources. Getting more efficient.
Continue reading

Cabot O&G 3Q – Production & Free Cash Flow Up, Spending Down

Cabot Oil & Gas, one of our favorite Marcellus drillers, continued to impress during 3Q19. The company reports free cash flow popped 150% higher than 3Q18–even though the price of natural gas was down 23% over the same period last year. Production was 2.3 billion cubic feet per day, all of it dry natural gas. They drilled 22 new Marcellus wells (in Susquehanna County, PA) and completed 29 wells, which means they’re drawing down their DUC (drilled but uncompleted) well inventory.
Continue reading

Southwestern Energy 3Q – Production Up, Spending Down a Lot

Southwestern Energy, now a pure play driller focused on the Marcellus/Utica since selling off their Fayetteville Shale assets in Sept. 2018, produced 2.2 billion cubic feet equivalent per day (Bcfe/d) of natural gas in 3Q19, up from 2.0 Bcfe/d in 3Q18. (Those numbers remove the Fayetteville to compare apples to apples.) Southwestern drilled 24 new Marcellus and/or Utica wells and completed 30 wells in 3Q, which means, like other drillers, they continue to draw down their DUC (drilled but uncompleted) well inventory. Unlike Cabot which produces 100% dry gas, some 22% of Southwestern’s production was natural gas liquids.
Continue reading

Ohio Landowners Sue Encino Energy for Shorting Royalties

Landowners in Carroll and Columbiana counties (Ohio) have filed a class action lawsuit against Encino Energy claiming the company underpaid oil and natural gas royalties. Last November Encino Acquisition Partners (i.e. Encino Energy) completed its purchase of all of Chesapeake Energy’s Ohio Utica Shale assets for $2 billion (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B). The deal included all of Chesapeake’s 933,000 Ohio acres–with 320,000 net Utica acres–and 920 operated and non-operated Ohio Utica wells.
Continue reading

Southwestern Energy Lands Another “Responsible Gas” Customer

In September 2018 MDN brought you the news that Southwestern Energy had, for the first time anywhere, sold natural gas to a customer (utility company New Jersey Resources) that has been certified as “responsible gas.” The certification comes from Independent Energy Standards Corporation (IES) and they call it their TrustWell™ Responsible Gas Program certification (see Southwestern Sells 1st Certified “Responsible Gas” to NJ Resources). It looks like they’ve landed another customer for their “responsible” gas: Virginia Natural Gas.
Continue reading

Shale Insight Day 1: Fireside Chat with Toby Rice of EQT

Dave Spigelmyer (left) and Dan Rice

Shale Insight 2019, being held in Pittsburgh on Wednesday and Thursday, kicked off with a “fireside chat” between Marcellus Shale Coalition President Dave Spigelmyer and EQT CEO Toby Rice. While President Trump’s visit later in the day was certainly a highlight and focus (who doesn’t want to tell their kids and grand kids they saw the President?!), we would say, in all honesty, that the bigger highlight for those in the industry was the opportunity to hear Toby Rice. We would say his talk was more anticipated than Trump’s visit.
Continue reading

Range Sells Another 0.5% Royalty Interest for $150M

In July MDN brought you the news that Range Resources had sold a 2% overriding royalty interest on 350,000 acres “in southwest Appalachia” for $600 million (see Range Resources Sells 2% Royalty Interest + 20K Acres for $634M). Range’s announcement did not identify who, exactly, was the company doing the purchasing. Lime Rock Resources later self-identified as the buyer (see Mystery Solved: Lime Rock Buyer of 2% Royalty Interest in Range). Range has just done it again–sold off another 0.5% (one-half of one percent) of an overriding royalty interest for another $150 million.
Continue reading

Rice Boys’ First 100 Days at EQT – Where Do Things Stand?

Last Friday, Oct. 18, was the 100th day since Toby and Derek Rice took over the leadership at EQT, the country’s largest natural gas-producing company. The Rice boys won a proxy fight in July to elect a new board (and themselves) to lead the company (see Rice Bros. Win Proxy War to Control EQT – Toby Rice New CEO). Prior to winning, Toby Rice touted a “100-day plan” to turn the company around. How is that plan going?
Continue reading

NFG’s New CEO David Bauer Schools Reporter on Benefits of NatGas

NFG’s new CEO David Bauer

Last week National Fuel Gas Company’s new CEO David Bauer, who just took the reins of the company from the previous CEO Ronald Tanski in July (see NFG CEO Tanski Retiring in July, Replacement Named), attended a luncheon in Erie, PA. He spoke to a local reporter to answer questions about NFG and the industry at large. Although NFG is a large utility company, it also owns Seneca Resources, a shale driller, and Empire Pipeline. The conversation with the reporter mostly centered on shale questions.
Continue reading

Exxon Mobil Sniffing Around SWPA to Build Second Cracker Plant

Leave it to ace reporter Paul Gough from the Pittsburgh Business Times to unearth some earth-shattering news–that ExxonMobil is actively looking at locations in Beaver County, Pennsylvania to potentially build a second multi-billion dollar cracker plant. Shell is already well along in building the region’s first ethane cracker–in Monaca (Beaver County). Will lightning strike twice for the good citizens of Beaver County? Maybe!
Continue reading

PA DEP Reaches $1.48M Settlement with CNX to Plug Abandoned Wells

Last year the Pennsylvania Department of Environmental Protection (DEP) issued administrative orders requiring three oil and gas companies–Alliance Petroleum Corporation (a subsidiary of Diversified Gas & Oil), XTO Energy, and CNX Resources–to plug 1,058 abandoned oil and gas wells across Pennsylvania (see PA DEP Orders CNX, XTO & Diversified to Plug 1,058 Abandoned Wells). All three appealed the DEP’s order to the state Environmental Hearing Board. In March of this year the DEP cut a deal with Diversified (see DEP and Diversified Gas & Oil Compromise on Plugging Old PA Wells). As of last week, the DEP has now cut a deal with CNX, relaxing their earlier edict.
Continue reading

EdgeMarc Creditors Ask Judge to Change Bankruptcy from Ch 11 to 7

Difference between Chapter 7 & 11 (click for larger version)

EdgeMarc Energy, headquartered in Canonsburg, PA (with 50,000 acres of Marcellus/Utica leases), filed for Chapter 11 bankruptcy in May, looking to sell all of the company’s assets (see EdgeMarc Energy Files for Bankruptcy, Blames Revolution Pipe). The reason? They can’t move their production to market because their main pipeline partner, Energy Transfer’s Revolution Pipeline, exploded in September 2018 and ET has not been able to get the PA Dept. of Environmental Protection to allow them to fix and restart it.
Continue reading

PA DEP Shuts Down 2 Marcellus Wells for Not Paying Impact Tax

Xtreme Energy Co., headquartered in Victoria, Texas, has been ordered by the Pennsylvania Dept. of Environmental Protection (DEP) to shut down/stop producing at two Marcellus wells operated by the company located in Somerset County, PA, in the southwestern part of the state. Why? Because, says the DEP, Xtreme has not paid its impact fee (i.e. severance tax) for those wells for 2014, 2015 and 2016.
Continue reading

All of EQT’s Previous Top Management, Save One, is Now Gone

Donald M. “Blue” Jenkins

Beauty (and truth) is in the eye of the beholder. During the proxy fight earlier this year to control EQT’s board–and ultimately its management team–Toby Rice threw some sharp barbs including talk that EQT’s existing management was not up to the task of effectively running the company. The Rice boys said so, their board nominees said so, and Institutional Shareholder Services (ISS) said so. There will be change (i.e. personnel change) at the “operational level” said ISS. Imagine our surprise when, after assuming control, Toby said there would *not* be a wholesale replacement of top management (see Toby Rice, EQT’s New CEO, is NOT Cleaning House re Top Management). We guess it depends on what you mean by “top management,” because as of now, seven of the then eight members of the senior management team at EQT are gone. What about the last survivor?
Continue reading

NFG On Track to Build Northern Access Pipe in NY in 2022/23

National Fuel Gas Company (NFG), the utility and midstream giant based in Buffalo, NY, remains committed to building it’s Northern Access Pipeline project, a $500 million project that includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although New York State (under the profoundly corrupt Andrew Cuomo) continues to try and block the project, NFG says they will build it–in the 2022-23 time frame.
Continue reading

PennEnergy Sues Energy Transfer re Revolution Pipeline Explosion

Revolution Pipeline, built by Energy Transfer, runs through Bulter, Beaver, Allegheny and Washington counties in southwest PA. The 24-inch gathering pipeline shifted and exploded more than a year ago, in September 2018, just as it was entering service (see Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed). The ongoing outage is credited with forcing EdgeMarc Energy into bankruptcy (see EdgeMarc Energy Files for Bankruptcy, Blames Revolution Pipe). The outage also negatively affects another driller/producer: PennEnergy Resources.
Continue reading