Energy Companies

Energy Companies | Mountaineer Keystone

Shake-up at the Top of Marcellus Driller Mountaineer Keystone
November 19, 2015November 19, 2015

A little over a year ago, Mountaineer Keystone, a pure play Marcellus/Utica driller headquartered in Pittsburgh, bought out PDC Mountaineer for half a billion dollars, creating a company with 181,000 net acres totally focused on the northeast (see Major New Player in the Marcellus Emerges: Mountaineer Keystone). Mountaineer Keystone got its start in 2010 when founder/CEO Rob Kozel formed the initial management team from former Texas Keystone people. In 2011 the company took a boatload of money from First Reserve, an energy investment firm. We don’t have the back story, but on Tuesday Mountaineer announced that Kozel is out as CEO and in his place the board has selected David Wood, the current Chairman of the Board at Mountaineer Keystone. Kozel will remain on the board in a “non-executive role.” As we said, we don’t know what happened, but it sure smacks to us of a palace coup–that Kozel was forced out of running the company he founded (we’ve seen it happen before, it ain’t pretty)…
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American Energy Partners | Antero Resources | Ascent Resources | Chesapeake Energy | Chevron | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Range Resources Corp | Rice Energy | Seneca Resources | Southwestern Energy

Top 10 Marcellus/Utica Drillers by Number of Permits May-Aug 2015
November 18, 2015November 18, 2015

MDN recently published Volume 2 of our 2015 Marcellus and Utica Shale Databook–a research book that chronicles who’s drilling and where in the Marcellus/Utica region. We thought it would be interesting to bring you some of the results from this latest volume. Below is a list of the top 10 Marcellus/Utica drillers based on the number of permits they were issued from May through August 2015. The numbers of permits shown are for discrete, individual wells. Each well drilled typically involves multiple permits–one to begin drilling, another to frack, etc. We toss out all of the multiples and show the numbers for discrete, individual wells. The top driller ranked by number of permits received may just surprise you–it did us. In addition to the list, we’ve included stock charts for each company to show you just how badly the industry has been hit over the past year. Stock prices for most of the top 10 have plunged…
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Energy Companies | Southwestern Energy

Southwestern Energy Borrows $750M to Pay Off Other Borrowed Money
November 18, 2015November 18, 2015

One of the largest drillers in the Marcellus/Utica, Southwestern Energy, announced yesterday they’re borrowing $750 million in a three-year term loan–to pay off borrowed money. Yes, we know, it’s the American Way to borrow money to pay off other debts. Dave Ramsey wouldn’t be impressed–and neither are we. But that’s the way the game is played…
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Clearfield County | Energy Companies | Energy Corporation of America | Greene County (PA) | Industrywide Issues | Pennsylvania | Regulation | Statewide VA | Virginia

Virginia Rejects Deal for DC-based Utility to Buy Marcellus Wells
November 18, 2015November 18, 2015

A Washington, DC-based natural gas utility company, Washington Gas (WGL Holdings), announced in May they had cut a $126 million deal with Energy Corp. of America to purchase a 96% interest in 22 Marcellus Shale gas wells in Greene County, PA and another 3 shale wells in Clearfield County, PA. The gas flowing from those wells would go to WGL’s customers in the State of Virginia, requiring state approval of the deal. The Virginia State Corporation Commission (VSCC) turned them down and nixed the deal. Why? VSCC said WGL’s assumptions about how much the wells will produce, and about the price of gas over the next 20 years, were not solid. Furthermore, the VSCC didn’t like that WGL is essentially shifting the risk of well production/prices onto the backs of rate payers. More deals like this are rumored to be coming down the pike. Will they get nixed too?…
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Energy Companies | Hess

Hess Proud of Pleasing Those Who Want to Shut the Company Down
November 18, 2015November 18, 2015

Has the world always been this screwed up? Perhaps. How do you explain one of the world’s largest fossil fuel companies, Hess Corp., trying to please the lunatics who are trying to shut them down? Do you call that self-loathing? Do you call it fear? Do you call it dysfunctional co-dependency? Whatever you call it, Hess is crowing about the “honor” of being recognized as a “leader” among S&P 500 companies for “climate change transparency”. This “honor” has earned Hess a position on something called the “2015 Climate Disclosure Leadership Index (CDLI)”–a hall of fame thing cooked up by a group of self-righteous global warming true believers called the CDP who would love nothing better than to see oil and gas companies like Hess go extinct…
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Energy Companies | EXCO Resources

EXCO Board Member Goes on Company Stock Buying Bender
November 18, 2015November 19, 2015

[Note: This story was updated on Nov. 19, see note below.]

EXCO Resources’ Board of Directors member John Wilder, Jr. has been on a one-man stock-buying bender over the past couple of weeks. You may recall Wilder purchased 297,100 shares of EXCO stock for ~$315,000 at the end of October (see EXCO Stock Short Selling Goes Up; Board Member Buys 297K Shares). Last Friday and again on Monday Wilder purchased another ~$830,000 worth of company stock (~793,000 shares), for a grand total of $1.14 million worth of stock (1,090,063 shares). Why the sudden purchases?…
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Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Inflection Energy | Litigation | Lycoming County | Pennsylvania

PA Judge to Antis Seeking Drilling Delay: Put Up $5.69M or Shut Up
November 17, 2015November 17, 2015

Here’s a story we LOVE bringing you. A Pennsylvania county judge, Senior Judge Brendan J. Vanston (Lycoming County), has just told an anti-driller to put up or shut up. Inflection Energy had been legally permitted to begin drilling a well in Loyalsock Township in Lycoming County. As they so often do, an anti-driller objected, filing an appeal to stop the drilling in an attempt to delay it by (ab)using the courts. The judge said, in essence, “OK, if you want to play this game, you need to put up $5.69 million as a bond–money you will lose if you don’t prove your frivolous case.” We predict the case will quickly disappear and Inflection will begin drilling…
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Anadarko | Anti-Drilling/Fossil Fuel | Crime | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania

Earth First Protesters Convicted, Fined for Blocking PA Drill Site
November 17, 2015November 17, 2015

A couple of radical “Earth First” protesters were fined $400 each last Friday in a Lycoming County, PA court, having been convicted of creating a hazardous situation by “crossing the line” according to the judge. The conviction stems from a case we reported to you last year when a group of nutters shut down an Anadarko drilling site in Lycoming County by chaining themselves to a 12-foot long, shrapnel-filled concrete pipe they had laid across a road (see Protesters Shut Down Anadarko Drill Site in Lycoming County, PA). First responders had to risk their own lives to cut them free, through concrete intentionally embedded with shrapnel (we wouldn’t have been as understanding or gentle as the first responders). Just to show you how big a splash a few committed ~~psychos~~ protesters can make, one of the two fined for $400 (and ordered to perform 50 hours of community service) in Lycoming County last week was also one of the ~~idiots~~ protesters who endangered fans at the Indianapolis Colts/Carolina Panthers NFL game by rappelling down from an upper deck to unfurl a big sign opposing the Cove Point LNG plant (see Cove Point Protesters Disrupt Monday Night Football Game on TV). Same dude–a serial lawbreaker…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources

GreenHunter Res. 3Q15: Net Loss Decreases, Brief MHR Mention
November 17, 2015November 17, 2015

Yesterday GreenHunter Resources, the wastewater subsidiary of Magnum Hunter Resources (MHR), filed its third quarter 2015 financial and operational update. GreenHunter also held an earnings/analyst conference call to discuss the company’s performance in the last quarter and to look ahead at what’s coming. The company continues to lose money, but the money they’re losing is less now than it was a year ago–and the numbers are not all that big in the scheme of things. GreenHunter lost $1.3 million in 3Q15, compared to a $3.9 million loss in 3Q14. Things are getting better financially for the company. The two things we were most interested in were (1) any mention of the lawsuit they launched against two former vice presidents who allegedly conspired with a competitor against the company (see GreenHunter Sues 2 Former VPs + OH Competitor for Conspiracy); and (2) any word about GreenHunter’s parent company MHR and an impending declaration of bankruptcy (see Dire Straits: Magnum Hunter Tells SEC Heading for Bankruptcy). In scouring the press release (below) and transcript of the analyst call (portions below), we found only a single very brief reference to MHR’s problems, and nothing about the lawsuit…
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Energy Companies | Warren Resources

After Almost a Year, Warren Resources Gets New CEO
November 17, 2015December 15, 2015

Warren Resources, a small, independent exploration and production company with an ongoing drilling programs in California, Wyoming, and in the northeast Pennsylvania Marcellus Shale, recently moved their headquarters from New York City to Denver, Colorado (see Warren Resources Says Bye-Bye to NYC Headquarters, Hello Denver). Warren’s Marcellus program is small–very small. They spent just $3.8 million in 3Q15 to complete two “upper” Marcellus wells (see Warren Res. 3Q15: $190M Paper Loss, Completes 2 Upper Marcellus Wells). However, they remain active in the Marcellus and may one day expand their activity here, so we keep tabs on them. The company is facing some serious challenges. Last December Warren’s CEO and Chairman of the Board, Philip Epstein, suddenly quit (see CEO of Warren Resources Quits, Replaced by Citrus Energy CEO). Since Epstein’s departure, Citrus Energy CEO Lance Peterson (a Warren board member) had taken the reigns as interim CEO. The search is now over and Warren has just announced the appointment of a new CEO…
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Anti-Drilling/Fossil Fuel | Energy Companies | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Pennsylvania General Energy | Regulation | Wastewater

Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement
November 16, 2015November 16, 2015

Question: How will Grant Township (Indiana County, PA), a town with 741 people in it, pay a lawsuit it may lose awarding Pennsylvania General Energy (PGE) $1 million? Going by the law of averages, less than half of the 741 people actually pay taxes (the other half are welfare slugs). So the question is, how can something like 200 families come up with enough money to pay such a large lawsuit? Answer: they can’t. The town goes bankrupt. That is the very real situation facing the residents of Grant Township. You may recall we’ve written about this before. Grant tried to block PGE from building a wastewater injection well in the township by passing an illegal law stirred up and proposed by the odious Community Environmental Legal Defense Fund, or CELDF (see Fed Judge Overturns Grant Twp, PA Ban on Injection Wells). The town has now tried to reorganize in order to avoid the judge’s ruling (see Grant Twp, PA Reorganizes to Avoid a Court-Ordered Injection Well). PGE has sued the town claiming (truthfully) they’ve suffered at least $1 million in damages. That case goes to trial in March. If the town loses, the town pays. The cowardly CELDF has admitted they won’t contribute a penny toward the $1 million fine if the case goes against the town. Nice friends the people of Grant have made in the CELDF, wouldn’t you say?…
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Energy Companies | Hess

Hess COO Sells $540K of Company Stock
November 16, 2015November 16, 2015

From time to time we tell you about so-called “insider selling” or “insider buying”–by which we mean someone in top management or on the board of directors is buying or selling stock in the company for which they work. We’ve just had another instance. In September, first a Hess board member John H. Mullin III purchased $381,430 worth of company stock (see Hess Board Member Buys 7K Shares, Now Owns $3.2M in Hess Stock), then Hess CEO John Hess bought a whopping $7.5 million worth of company stock (see Hess CEO John Hess Buys 144K Shares of Co. Stock for $7.5M). Now we get word that Hess COO Greg Hill has just sold $540,180 worth of stock…
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Eclipse Resources | Energy Companies

What Did Eclipse Resources Qtly Call Reveal re Potential Sale?
November 13, 2015November 13, 2015

Yesterday Eclipse Resources, an exploration and production company focused solely on the Marcellus and Utica Shale region, held their third quarter analyst conference call to discuss third quarter 2015 performance. We’ve already brought you the official press release/update for Eclipse’s 3Q15 results (see Eclipse Resources 3Q15: Production Up 163%, Net Loss $81M). What we were interested in, as we scoured the transcript of the conference call, was whether or not anyone brought up the rumor that Eclipse is currently shopping the company (see Marcellus/Utica Driller Eclipse Resources Looking for a Buyer). Morgan Stanley is said to be the investment bank shopping Eclipse for sale. There were no analysts from MS on the call, but there were analysts from MS competitors, like arch rival Goldman Sachs. Did any of those analysts ask a question about the rumor the company is looking to sell?…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Dire Straits: Magnum Hunter Tells SEC Heading for Bankruptcy
November 12, 2015November 12, 2015

Here’s one time when we wish we had been wrong. In October we warned you that Magnum Hunter Resources (MHR), a smaller but important driller in the Marcellus/Utica, was either heading for a sale or bankruptcy (see Magnum Hunter: Preparing to Sell, or Filing for Bankruptcy?). Looks like it’s the later. The company filed its required quarterly form 10-Q with the Securities and Exchange Commission earlier this week (full copy of the 10-Q below). In the filing we get this statement: “As of September 30, 2015, the Company had $6.5 million in cash and a working capital deficit of $1,037.2 million, and the Company continues to incur significant losses from continuing operations.” Eeeks. They only have $6.5M in the bank to keep the lights on and make payroll, and they owe over $1 billion. Then we get this: “…these factors raise substantial doubt about the Company’s ability to continue as a going concern.” Near the end of the report, they spell it out in black and white: “We may seek the protection of the United States Bankruptcy Court (the “Bankruptcy Court”), which may harm our business and place equity holders at significant risk of losing all of their interests in the Company.” Translation: We’re going bankrupt. In addition, earlier this week the New York Stock Exchange made good on its previous threat and has begun the process of de-listing MHR’s stock–which caused a selloff of the stock. The stock price hit 15 cents per share, so the NYSE halted trading. Never rains but it pours…
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Eclipse Resources | Energy Companies

Eclipse Resources 3Q15: Production Up 163%, Net Loss $81M
November 12, 2015November 12, 2015

Eclipse Resources, an exploration and production company focused solely on the Marcellus and Utica Shale region headquartered in State College, PA but focusing on Utica drilling, released its third quarter earnings and operational update. It was also just yesterday we told you about the rumor that Eclipse is shopping itself (see Marcellus/Utica Driller Eclipse Resources Looking for a Buyer). What does the 3Q15 update show? Production averaged 225.2 million cubic feet equivalent per day (MMcfe/d), up 163% over 3Q14. Eclipse drilled 9 gross (4.8 net) wells, completed 15 gross (7.2 net) wells and turned 22 gross (6.4 net) wells to sales. Because of smart hedging, the company got $2.86 per thousand cubic feet (Mcf) in 3Q15–10 cents per Mcf more than what gas has been trading for at the Henry Hub. But even with pumping way more gas and getting favorable pricing, it still wasn’t enough to prevent an $81 million net loss for the quarter. Yes, some of that was a paper loss (depreciation/amortization stuff)–but not all of it. Some of it was actual money out of pocket loss. Here’s the update…
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Anti-Drilling/Fossil Fuel | CNX Resources | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Westmoreland County

3 Western PA Antis Weigh Appeal of Court Ruling in Zoning Case
November 12, 2015November 12, 2015

Three anti-drillers in Westmoreland County, PA are continuing their quest to deny their neighbors the right to allow natural gas drilling. You may recall one week ago we told you that a clear-thinking western PA county judge ruled that there are two sides to the Act 13 court case–local municipalities don’t always have to rule you *can’t* allow drilling in certain areas, sometimes the decision goes the other way *to* allow it (see PA County Court Rules Drilling OK in Ag/Residential District). In this particular case, three ladies–Dolores Frederick, Patricia Hagaman and Beverly Taylor–have their knickers in a twist that one of their neighbors, a farm owned by John and Anne Slike, wants to allow CNX Gas (i.e. CONSOL Energy) to drill on their property, some 1,200 feet away. The three ladies lost. But as with antis everywhere, the rule of law makes no difference. They (and their lawyer) are still agitating to try and prevent the Slikes from moving forward. They’re deciding whether or not to appeal the decision…
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