Economic Impact | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Washington County
Intl Plastics Co Selects W PA for Regional HQ Thx to Shell Cracker
In June, Shell announced a final investment decision (FID) to move forward with building a multi-billion dollar ethane cracker plant in Pennsylvania (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). While everyone is excited about the jobs and money that will be spent to build the plant, the much larger benefit will come when petrochemical manufacturers build new plants in the region to take advantage of low-cost polyethylene that will come from the cracker. We already have our first case of a major manufacturer announcing a new plant in the region, thanks to the Shell cracker…
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Gulfport Energy is an Oklahoma City-based independent oil and natural gas exploration and production company (“driller”) with its main operations in the Utica Shale of eastern Ohio and along the Louisiana Gulf Coast. In August MDN ran an article looking at the top 5 drillers in the Utica Shale (see 
On Wednesday Chesapeake Energy issued an announcement to crow about “significant improvements in its capital structure following recent transactions.” The improvements came as a result of Chessy striking a deal to get $1.25 billion in cash from selling unsecure (nothing to back it) convertible notes–i.e. IOUs. Chesapeake handed people a piece of paper saying they would pay them back in the future, and those people gave the company cash. A LOT of cash. [Note to self: Maybe you’re in the wrong business?] The “convertible” part of the IOUs issued states that if by some miracle Chesapeake can get their stock price up 130% in three years over what it is today, Chesapeake has the right to convert the IOUs (debt) into shares of stock (equity). As of June 30 Chesapeake’s debt was $8.7 billion…
More analysis continues to roll in on Rice Energy’s plan to buy Vantage Energy for $2.7 billion (see 
Warren Resources, a small driller that drilled and brought online their first two Marcellus Shale wells last year, is based in Houston and operates in California, Colorado, Wyoming and Pennsylvania. In February MDN told you that Warren missed an important $7.5 million payment, the first ominous signal of what was to come (see 
Canadian energy company Enerplus Corp owns some 47,000 acres of Marcellus Shale leases in northeastern Pennsylvania representing 841 billion cubic feet (Bcf) of reserves. Most of that acreage, according to the company’s website, is currently “non-operated.” Enerplus does actively drill in the North Dakota Bakken Shale play. Enerplus has a problem: the company is about $530 million in the hole (in debt). The way out of that hole? Sell off their non-operated Marcellus acreage for ~$500 million (works out to be $10,638/acre). Reuters is reporting that three sources have confirmed Enerplus has put their Marcellus acreage up for sale–and the the “for sale” sign has caught the interest from investment firms here at home, and in Asia…
Each year MDN partners with the Oil & Gas Awards to promote their Northeast Awards–a way for companies in the industry that operate with distinction to get recognized by their peers. In March 2017 the Northeast Oil & Gas Awards will celebrate their 5th year. Over the past five years there have been thousands of entries and hundreds of finalists and winners. While the O&G Awards boys keep their ears to the ground to discover stellar performers, they want to know who YOU think are the best companies in the region. Therefore, they have put together a very brief survey (takes less than two minutes). This is your chance to bring a worthy company to the attention of the O&G Awards–perhaps even your own company!
Three months ago MDN told you that Rex Energy’s bankers had reaffirmed the company’s “borrowing base” as being worth $190 million (see 
Last week Cabot Oil & Gas CEO Dan Dinges issued a company-wide memo to observe a very important milestone in the life of the company–the 10th anniversary of the start of drilling at the company’s very first Marcellus Shale well in Susquehanna County, PA. With a quick stroll down memory lane to recount other major milestones reached over the past 18 months, Dinges then makes this powerhouse prediction: In the “next couple of years” when new pipelines (like the Constitution) finally go online, Cabot plans to hit 4 billion cubic feet (Bcf) of Marcellus Shale production–per day! Going from memory, that would vault Cabot to the position of #1 Marcellus gas producer, ahead of the current #1, Chesapeake Energy. Put into context, the U.S. produces around 71-72 Bcf/d right now. If Cabot begins producing 4 Bcf/d, that represents 5.5% of the entire production of natural gas in our country–from a single driller in a single county in northeastern PA. Behold the miracle of the Marcellus! MDN adds our own hearty congratulations to our friends at Cabot (Buddy, George, Bill and Brittany)…
Since before Aubrey McClendon left the helm at Chesapeake Energy, the company has been controversial and to one degree or another, in hot water. Legally. You’ve read plenty on MDN about who’s sued Chessy, over royalties, over collusion on land deals, over nonpayments to suppliers. You’ve also read about various investigations by various government entities into Chesapeake and their practices. It appears like it’s all reaching a fevered pitch. Yesterday Chesapeake filed disclosure forms with the Securities and Exchange Commission which says the U.S. Dept. of Justice, a number of states, and even the U.S. Postal Service have served the company with subpoenas for information. In essence, everyone has subpoenaed Chesapeake for everything…
Something noteworthy is happening in southwest Pennsylvania. Landowners and pro-gas supporters are turning out at local hearings to support more drilling. Case in point: Range Resources had applied for a permit to build a drill pad near a local elementary school in Mt. Pleasant (Westmoreland County), PA. Moms Clean Air Force and other anti-drillers turned out to oppose the plan. A local town board meeting was packed to capacity. However, a majority of those packing the meeting were pro-gas and wore t-shirts with “Land Owners United” printed on them. Cool! About time our side began to turn up for these meetings to support the industry…
Last week MDN told you that evil corporate raider Carl Icahn has thrown in the towel with respect to ever making money from Chesapeake Energy. He recently sold off half his Chessy stock (see 
Yesterday MDN reported the big story that Rice Energy is paying $2.7 billion to buy the assets of Vantage Energy (see