Is Devon’s Marcellus Next? One Wall Street Analyst Says Yes
Ten days ago, after Devon Energy agreed to sell its Eagle Ford assets for $4.2 billion, we asked whether the Marcellus would be next (see Devon Energy Sells Eagle Ford for $4.2B: Is the Marcellus Next?). One Wall Street analyst now says yes, and maybe soon. On Friday (Oct. 16), energy analyst Elliott Gue upgraded Devon’s stock to “Strong Buy” in a detailed piece on the Seeking Alpha investor website. He thinks the old Cabot/Coterra Marcellus position in Susquehanna County is one of the two likeliest assets on the chopping block, along with the Powder River Basin in Wyoming. He even floats the idea of a deal before or around Devon’s Nov. 5 earnings release. His article also has some useful new numbers on just how big Devon’s Marcellus business is. We break it down below. Read More “Is Devon’s Marcellus Next? One Wall Street Analyst Says Yes”
The Marcellus/Utica region received 10 new drilling permits last week, October 5-11, down a big 19 from 29 permits issued two weeks earlier. Pennsylvania issued 7 of the new permits. Ohio issued 2 new permits. And West Virginia issued a single new permit. The drillers who received new permits last week were: Ascent Resources, EQT, PennEnergy Resources, and Range Resources. 
It’s a go. Yesterday, one day ahead of its own October 15 deadline, National Fuel Gas Company’s (NFG) board approved a plan to split the 124-year-old company in two. Seneca Resources and the NFG Midstream gathering business will spin off as a new, publicly traded Marcellus/Utica driller. The company is calling it “IUG” for now (short for Integrated Upstream and Gathering) because it doesn’t have a real name yet. Seneca president Justin Loweth will be the CEO. NFG shareholders will get the new shares tax-free. Don’t hold your breath, though. The split isn’t expected to close until the second half of 2027. 
Infinity Natural Resources, the Morgantown, WV-based driller that bought Antero Resources’ Ohio Utica assets for $1.2 billion earlier this year, isn’t done shopping. CEO Zack Arnold told Hart Energy at its SUPER DUG conference in Houston in September that Infinity is “actively looking for the next opportunity.” Arnold also dropped a few other nuggets worth your attention: Infinity has drilled its first deep dry gas Utica well in a Pennsylvania field that has only ever produced from the Marcellus; a “couple” of unnamed operators are starting to develop the Marcellus in eastern Ohio; and newly available state and federal lands in Ohio are a fresh source of drilling locations. 
Back in July, Infinity Natural Resources (INR) told the world it had booked a $57.5 million derivative (hedging) gain for the second quarter, and MDN used the occasion to decode how hedging works (see 
Shell Chemical Appalachia wants a federal judge in Pittsburgh to throw out a lawsuit Philadelphia-based Big Green group Clean Air Council filed more than three years ago over air emissions at Shell’s ethane cracker plant in Monaca (Beaver County), PA. Shell’s main argument is simple: the PA Department of Environmental Protection (DEP) has already gone after Shell for the very same violations, not once but twice, collecting nearly $25 million in penalties and “community” payments. Federal law, says Shell, doesn’t let a private group pile on when the state is already on the case. Shell also argues the Council never showed that a single member was actually harmed. Shell filed its motion last Friday, Oct. 9, and the Council has agreed to pause the case while the judge decides. 
Here’s a story you won’t read anywhere else. Strata Petroleum, LLC buys oil and gas mineral rights, and it has quietly sold its mineral interests in 116 producing Ohio Utica wells to Dallas-based Rising Phoenix Royalties. The deal closed effective October 5. Strata managing partner Justin Wainwright reached out to MDN with the news. He won’t disclose the exact price, but he told us it was “well into 7 figures.” The wells are operated by two of the biggest names in the Ohio Utica, EOG Resources and Ascent Resources, and they’re spread across six of the play’s core counties. Strata says it isn’t leaving the region. It plans to keep buying minerals across Ohio, West Virginia, and Pennsylvania. 
One shoe has dropped. Yesterday (Oct. 8), Devon Energy announced it is selling its entire Eagle Ford position in South Texas to Houston-based Crescent Energy for $4.2 billion in cash. It’s Devon’s first big asset sale since it swallowed Coterra Energy in May. It’s also not the sale most of us expected a few months ago. The old Cabot Oil & Gas Marcellus position in Susquehanna County, which Devon now owns, stays put. For now. The question we keep hearing from Northeast PA landowners: Is the Marcellus next? Below we read the tea leaves. 
Expand Energy, the largest natural gas producer in the country (born from the 2024 merger of Chesapeake Energy and Southwestern Energy), is going all-in on artificial intelligence (AI). Recently, tech consulting firm Thoughtworks announced that Expand has hired it to build AI capability across the entire company. Not just out in the field, but in the office and on the gas marketing desk, too. Expand wants a working AI tool in “production” (i.e., actually being used, not just tested) by the end of this year. That’s about 12 weeks from now! This is not Expand’s first AI rodeo. Back in January, Expand signed a deal with Baker Hughes to put AI-powered software on thousands of its Marcellus, Utica, and Haynesville wells. 
Yesterday was the first Monday in October, which means the U.S. Supreme Court opened a new term. The very first case the justices heard may be the most important case for the oil and gas industry, including Marcellus/Utica drillers, in a generation. The case is Suncor Energy v. County Commissioners of Boulder County. It asks whether a city or county can haul energy companies into its own state court and make them pay for the costs of climate change. If the answer is yes, Chief Justice John Roberts predicted a copycat lawsuit from “a municipality in every single state.” That’s not a scare tactic. It’s a business plan for trial lawyers. 
The first domino has fallen. Last Thursday, National Fuel Gas Company (NFG) closed its purchase of CenterPoint Energy’s Ohio natural gas utility, the Dayton-area company formerly known as Vectren Energy Delivery of Ohio. Why should Marcellus/Utica folks care about a utility deal in the Miami Valley? Because NFG’s CEO told us several weeks ago that this closing clears the way to split off Seneca Resources, NFG’s drilling arm, into its own separate company (see 
A federal judge in Williamsport has thrown out two 10-year-old lawsuits filed by northeastern Pennsylvania landowners who claimed Anadarko, Mitsui, and Williams (the old Access Midstream) were running a mob-style racket to shrink royalty checks. If that sounds familiar, it should. The same lawyers made the same argument in a sister case we first told you about in 2015, and the same judge tossed that one too. The landowners’ “Chesapeake/Access conspiracy” theory is now zero for three.