Energy Companies

Blue Ridge Mtn Res/Magnum Hunter | Chesapeake Energy | Chevron | CNX Resources | CONSOL Energy | Coterra Energy (Cabot O&G) | Eclipse Resources | Energy Companies | EQT Corp | EXCO Resources | Noble Energy | Range Resources Corp | Seneca Resources | Southwestern Energy

The Dismal Outlook for Marcellus/Utica Drilling in 2016
February 8, 2016February 8, 2016

Yes, it’s bad out there and getting worse–at least in the short term–when it comes to drilling in the Marcellus and Utica Shale. Several major drillers in the northeast have announced cuts–big cuts–and those cuts will impact not only the employees at those companies, but also the many supply chain companies that provide goods and services to them. There were a paltry 19 rigs operating in Pennsylvania last Friday. In January 2014, just two years ago, there were 55 active rigs working in the PA Marcellus. Here’s a recap of who’s cutting how much in 2016 (and perhaps beyond)…
Read More “The Dismal Outlook for Marcellus/Utica Drilling in 2016”
CNX Resources | CONSOL Energy | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

CONSOL Energy 2015: Reserves Up 16%, Brought 113 Wells Online
February 8, 2016February 8, 2016

CONSOL Energy released details about their proved reserves and about their drilling program from 2015 last Friday. Proved reserves are up 16% for the year. In 2015 in the Marcellus, CONSOL drilled and brought online 81 wells. In the Utica, CONSOL drilled and brought online 32 wells. Below are the details…
Read More “CONSOL Energy 2015: Reserves Up 16%, Brought 113 Wells Online”
Energy Companies | EQT Corp | Industrywide Issues | Reserves (Proved and Unproved)

EQT Proved Developed Reserves Jump 30% in 2015
February 8, 2016February 8, 2016

It’s the time of year when drillers boast about 2015 numbers–specifically how much oil and gas is down there. It’s called “proved reserves” (for a quick tutorial, see Defining O&G Reserves: Proved, Recoverable & In-Place). Last week EQT disclosed that their proved developed reserves jumped up 30% in 2015 over 2014. Below is some interesting information on EQT’s reserves (proved and otherwise) not only for the Marcellus, but for the Utica and Upper Devonian too…
Read More “EQT Proved Developed Reserves Jump 30% in 2015”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Shell

Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant
February 5, 2016February 5, 2016

MDN received an exclusive tip from a trusted source (who is also an MDN subscriber) yesterday about the Shell ethane cracker plant in Monaca (Beaver County), PA. Our source, who lives in Beaver County, told us he was approached by a Shell landman about signing a pipeline right-of-way through his property to build a pipeline to the plant. We have an account of our source’s conversation with the landman, and some key information the landman let slip about Shell’s plans for two such pipelines…
Read More “Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant”
Energy Companies | EQT Corp | Industrywide Issues | Pennsylvania | Taxation | Washington County

EQT 20-Well Pad on the Way in Washington County, PA? Maybe!
February 5, 2016February 5, 2016

A recent meeting of the Nottingham Township (Washington County), PA Board of Supervisors proved to be a font of useful information about Marcellus drilling in the town, both past and future. Nottingham currently has three drilling sites, two of which are already active and one future. The two active sites have 11 and 12 wells either drilled or planned to be drilled. According to a local fractivist, the third site, which is planned by EQT, will have 20 wells on it. EQT says the eventual number of wells has not yet been determined (but they didn’t rule out 20 wells). Nottingham shares a border with Peters Township. Peters, you may recall, was one of the seven selfish townships that sued to overturn portions of the Act 13 law dealing with local zoning of oil and gas projects, eventually winning at the PA Supreme Court level (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Nottingham has active drilling within its borders. Peters has still not allowed any drilling within its borders. Nottingham got $70,000 in impact fee money last year. Peters got $360,000 in impact fee money. What’s up with that?…
Read More “EQT 20-Well Pad on the Way in Washington County, PA? Maybe!”
Energy Companies | EQT Corp | Utica Shale

EQT is in Love with the Utica – Comments from Analyst Call
February 5, 2016February 5, 2016

On yesterday’s fourth quarter and full year 2015 analyst phone call, EQT’s upper management positively gushed with affection for the Utica Shale. Steve Schlotterbeck, president of exploration and production for EQT, said, “…we expect the Utica returns in the core area will be competitive with or better than the core Marcellus, and we will work on a plan to include Utica in our future development plans.” Meaning what? EQT will drill fewer Marcellus and more Utica wells? That seems to be the implication. Here’s more of what Steve had to say about the Utica on yesterday’s call…
Read More “EQT is in Love with the Utica – Comments from Analyst Call”
Energy Companies | EQT Corp

EQT 2015 Update: Production Up 27%, Price Received Down 35%
February 5, 2016February 5, 2016

EQT issued its fourth quarter and full year 2015 numbers yesterday. EQT is one of the largest drillers in the Marcellus Shale, and increasing in the Utica (see today’s companion article, EQT is in Love with the Utica – Comments from Analyst Call). The bad news is that EQT lost $134.5 million in just 4Q15. The good news is that unlike many other companies, EQT actually made money for the full year–a profit of $85 million–although that’s down from $387 million in 2014. EQT pulled 27% more gas from its wells in 2015 than it did in 2014, but the company saw a 35% decline in the average price it received in 2015. Yesterday’s update yields some bad news, but on the whole we’d say it’s good news for EQT. Some interesting stats from the update: As of Dec. 31, 2015, EQT has drilled 854 Marcellus wells with 693 of them online and flowing and another 57 wells completed but not yet hooked up to a pipeline. Here’s the full report…
Read More “EQT 2015 Update: Production Up 27%, Price Received Down 35%”
Energy Companies | Seneca Resources

Seneca Res. 2016: Lays Down Rig, Curtails Production, Cuts Budget
February 5, 2016February 5, 2016

National Fuel Gas Company (NFG), the utility giant headquartered in Buffalo, NY and parent of Marcellus driller Seneca Resources, issued what they call their first quarter 2016 update yesterday. NFG’s first quarter is everyone else’s fourth quarter–it covers the last three calendar months of the year (October through December). The big news coming from this update is that Seneca Resources will lay down another active drilling rig in March and will then operate just a single rig for the rest of 2016 and for all of 2017. Currently they are curtailing (closing the valves) on 14.6 billion cubic feet of production they could be sending to market–because of the low price of natural gas. Seneca has also whacked its drilling budget another $50 million. Previously Seneca planned to spend $200-$250 million in fiscal year (FY) 2016. Now? It’s down to $150-$200 million. In other important news, NFG has decided to delay the in-service date of their Northern Access pipeline project by full year–from late this year to late next year…
Read More “Seneca Res. 2016: Lays Down Rig, Curtails Production, Cuts Budget”
Antero Resources | Crestwood Midstream | Energy Companies | Energy Services

Is Crestwood Exploring Sale of Marcellus Assets to Antero?
February 4, 2016February 4, 2016

The following is highly speculative and the equivalent of rumor, but sometimes it’s fun to engage in a bit of rumor-mongering. We spotted a post on the investor website Seeking Alpha that posits the following theory: Crestwood Equity Partners (i.e. Crestwood Midstream), owner of major pipelines and other facilities in the northeast and in other locales, “may” be looking to sell their Marcellus operations to Antero Resources and their Bakken Shale operations to Tesoro Logistic Partners. It must be said up front the person authoring the article owns units (i.e. shares) of Crestwood (CEQP) and is in no way objective. Articles on Seeking Alpha attempt to persuade investors to buy or sell securities. However, the rationale laid out in the article intrigues us and we think it’s worth pondering whether or not Crestwood is about to shed large parts of the company, and what that might mean for our region…
Read More “Is Crestwood Exploring Sale of Marcellus Assets to Antero?”
CNX Resources | CONSOL Energy | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania | Sand/Proppant

Ceramic Beads Used to Drill CONSOL’s Monster PA Utica Well
February 4, 2016February 4, 2016

On Monday MDN told you about CONSOL Energy’s newest Utica Shale well, a gusher with initial production of an eye-popping 61.9 million cubic feet per day per day (see CONSOL 4Q15: All About that Utica, ‘Bout that Utica, No Marcellus). The well, the GH 9, was drilled not in Ohio, but in Greene County, PA. Drillers always wonder what techniques and technologies were used in drilling such a well. How long are the laterals? What kind of choke is used? How much sand per foot? Etc. We have one bit of detail to share. Apparently CONSOL is cool with CARBO Ceramics telling the world that the GH 9 used CARBO ceramic beads in place of sand as the proppant. Here’s the details from CARBO for exactly what was used as the proppant in the GH 9…
Read More “Ceramic Beads Used to Drill CONSOL’s Monster PA Utica Well”
Energy Companies | Industrywide Issues | Jobs | Lycoming County | Pennsylvania | Range Resources Corp | Washington County

Range Resources Lays off 55, including 33 in PA
February 3, 2016February 3, 2016

Yesterday Range Resources, the fourth largest driller in the Marcellus, announced the company is laying off 55 people companywide, with 31 of those positions located in Washington County, PA. Another 20 positions will be eliminated in Range’s home office located in Fort Worth, TX. Two of the jobs disappearing will be in Williamsport, PA, and the final two in Oklahoma. Range CEO Ray Walker used the same identical language he’s used twice before (lazy PR department?) in saying, “Low commodity prices have created a harsh reality that everyone in our industry is facing.” Indeed. The oil and gas industry is facing the toughest market it’s had in 30 years…
Read More “Range Resources Lays off 55, including 33 in PA”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Fayette County | Industrywide Issues | Regulation | Wastewater | West Virginia

Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells
February 3, 2016February 3, 2016

An update on a developing story we’ve covered the past several months. In January, three Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). In fact, the ban is intentionally written so broadly it will also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). Not long after, a U.S. District Court judge slapped an injunction on the county preventing them from enforcing the ban at least until a hearing scheduled for later this month (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). The judge says EQT “is likely to succeed” in their lawsuit to overturn the ban.” The new news is an article where one of the chief architects of the ban, from the Mountain Party, admits the ban is intended to stop all oil and gas activity in the county. Another well operator in Fayette County, Cabot Oil & Gas, is now evaluating the ban and considering joining the lawsuit against the county. We sure hope Fayette County has a LOT of money squirreled away for legal fees and fines and penalties coming their way…
Read More “Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells”
Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Reserves (Proved and Unproved) | Statewide OH

Gulfport 2015 Update: Reserves Up 83%, NatGas Production Triples
February 3, 2016February 3, 2016

Gulfport Energy, a Utica Shale driller quite active in Ohio until mid-2015 when they began to pull back, released their fourth quarter and full year 2015 operational update yesterday. But not their financials–that comes later this month. There is no mention of drilling activity in 4Q15 (nor any guidance for 2016). We previously brought you the rumor that Gulfport was pushing the pause button on their drilling activities, back in November (see Rumor: Gulfport Energy Suspends Some (All?) Ohio Utica Drilling). However, data from the forthcoming Volume 3 of the 2015 Marcellus and Utica Shale Databook, which covers permit activity for from September through December 2015, shows that Gulfport received 30 permits in Ohio during that period of time. So it appears they have continued their program, albeit scaled back. The 4Q15 and full year 2015 update shows Gulfport’s oil and gas reserves have grown 83% for 2015 over 2014, and natural gas production tripled year over year. Production/operations-wise, 2015 was a very good year for Gulfport. What’s left to be seen is whether it was a good year for Gulfport financially too. Here’s the operations update…
Read More “Gulfport 2015 Update: Reserves Up 83%, NatGas Production Triples”
Energy Companies | Exxon Mobil

ExxonMobil 2015: 50% Decline in Earnings, Thank God for Downstream
February 3, 2016February 3, 2016

Yesterday ExxonMobil released its fourth quarter and full year 2015 update. Not a pretty picture. ExxonMobil is the largest oil and gas company headquartered in the U.S. It’s also the owner of XTO Energy–which is one of the major drillers in the Marcellus/Utica Shale. Everyone watches Exxon closely as a barometer for other oil “majors” as they’re called. Yesterday Exxon reported a 58% drop in quarterly profit for 4Q15 (over 4Q14), and a 50% decline in 2015 earnings over 2014 earnings. Capital and exploration spending was $31.1 billion in 2015, down 19% from 2014. Exxon anticipates more cuts in spending for 2016, with capital and exploration spending of $23.2 billion, a decrease of 25% from 2015 levels. The clear sentiment in the statement below is, “Thank God for downstream” (gas stations and chemical plants) which kept the company from falling even further…
Read More “ExxonMobil 2015: 50% Decline in Earnings, Thank God for Downstream”
Anadarko | Energy Companies | Lycoming County | Pennsylvania

Anadarko 2015: Loses $6.7B, Marcellus Drilling Almost Dried Up
February 3, 2016February 3, 2016

Anadarko Petroleum is a huge oil and gas company with drilling operations scattered all over the world–both onshore and offshore. One of those operations, teeny tiny for Anadarko, is in the Marcellus Shale in Lycoming County, PA. Some of their leases are for land in the Loyalsock State Forest where antis are attempting to stop Anadarko from drilling (see Antis Ask PA Gov Wolf to Stop New Drilling in Loyalsock Forest). Don’t worry, Anadarko can take a hint. What was once a very active drilling program in PA for Anadarko just a few years ago–with 30, 40, even 60 permits being issued for wells in any given four month period–has dried up to virtually nothing. For the last four months of 2015 Anadarko received 4 permits to drill in PA, according to the latest data from the Marcellus and Utica Shale Databook. On Monday Anadarko released their fourth quarter and full year 2015 results. The company posted a $1.25 billion loss for 4Q15 alone. The company lost $6.7 billion for the full year. Yikes! Grab the tourniquets before the company bleeds out! Anadarko announced spending for 2016 will be slashed 50% over 2015 spending levels…
Read More “Anadarko 2015: Loses $6.7B, Marcellus Drilling Almost Dried Up”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 2015 Update; Cutting 2016 Drilling Budget 58%
February 2, 2016February 2, 2016

Cabot Oil & Gas, one of the premier drillers in the Marcellus Shale (operates totally within Susquehanna County, PA) released their fourth quarter and full year 2015 operational update this morning. The highlights: Cabot ended up spending $774 million on capital expenditures (mostly drilling) in 2015, down a bit from the previous estimate of $850 million. It’s down because they scaled back activity during 4Q15. They also had to write down the value for some of their non-core holdings by $73 million–what’s called an impairment charge. Looking ahead, Cabot plans to spend $615 million on capital expenditures (i.e. drilling) in 2016, which is down 58% from 2015. They will drill approximately 30 new wells, 25 of them in the Marcellus and 5 in the Texas Eagle Ford Shale. Here’s the update…
Read More “Cabot O&G 2015 Update; Cutting 2016 Drilling Budget 58%”