Energy Companies

Energy Companies | EXCO Resources

EXCO Stock Short Selling Goes Up; Board Member Buys 297K Shares
November 12, 2015November 12, 2015

EXCO Resources is an exploration and production company operating in East Texas/North Louisiana (the Haynesville Shale), South Texas (the Eagle Ford Shale), and in the Marcellus Shale region–in Pennsylvania and West Virginia. EXCO has a sizable Marcellus presence with 145,000 net acres in the Marcellus, having drilled and now operating 124 horizontal Marcellus wells. They’re also a company facing stiff challenges. We’ve enumerated those challenges for more than a year (see our EXCO stories here). Recently there’s been an uptick in “short selling” of EXCO stock. What does that mean? In essence, it means an increasing number of investors believe the price of EXCO’s stock will head lower than it is right now (see our short selling tutorial, “Short Selling” – An Important Signal for Marcellus-Related Companies). Below is the news about an increase in EXCO stock short selling, with a preface to put it in context, so you know how to think about it. Also below is news that John Wilder, an EXCO board member, has just purchased 297,100 shares of EXCO stock for $314,926…
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Allegheny County | Energy Companies | Noble Energy | Pennsylvania | Statewide PA

Noble Energy Axes Another 45 Marcellus Jobs, 180 Jobs Companywide
November 11, 2015November 11, 2015

Perhaps we now know why Noble Energy VP of exploration, Michael W. Putnam, sold a bunch of company stock last Thursday in what is called “insider selling” (see Noble Energy’s VP of Exploration Sells $224K of Company Stock). Yesterday the company announced it is cutting 45 jobs in the Marcellus Shale–and 180 jobs companywide. Ouch. MDN received the following tip from a subscriber yesterday late morning: “FYI, Noble Energy is in the midst of a possibly major layoff of their Canonsburg office today. 30-50% of the existing staff. This information came to me from friends who work there, one of whom was let go this morning. They knew about the pending layoff last week.” How many will be left working in the PA Marcellus, and how many employees will be left companywide? We have the numbers…
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Centre County | Eclipse Resources | Energy Companies | Pennsylvania

Marcellus/Utica Driller Eclipse Resources Looking for a Buyer
November 11, 2015November 11, 2015

One by one the dominoes are falling–companies in the Marcellus/Utica that just can’t hang on any longer are selling themselves. It was only last December that Eclipse Resources, an exploration and production company focused solely on the Marcellus and Utica Shale region, announced it had raised $440 million in a “private placement” of 62.5 million shares of common stock (see Eclipse Resources Gets $440M from New Stock, Trims 2015 Capex 20%). Eclipse drills almost exclusively in the Ohio Utica Shale, even though it’s headquartered in State College, PA. In June, Eclipse went shopping for an additional $550 million pile of cash by offering IOUs (see Eclipse Lowers IOU Offering Expectations – by $100M). Now comes word the company is using Morgan Stanley to shop itself to potential buyers. No word on the asking price or whether or not there’s been any bids…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources

MHR’s GreenHunter Schedules 3Q15 Conference Call Next Week
November 11, 2015November 11, 2015

Here’s something pretty innocuous, at least at first glance, but something we find interesting nonetheless. Yesterday GreenHunter Resources announced it will hold an operating results conference call next Monday, Nov. 16. There’s certainly not much that appears to be interesting about that. We see dozens (hundreds?) of such announcements each quarter. So what, about this one, caught our attention?…
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Centre County | Energy Companies | Lawrence County | Pennsylvania | Rex Energy | Utica Shale

Rex Energy 3Q15: $95M Paper Loss, 1st Utica Well Online, Prod Up 15%
November 11, 2015November 11, 2015

Rex Energy and Eclipse Resources are really like two peas in a pod. The people who founded Eclipse, which is shopping itself (see today’s companion story), are former Rex Energy people. Both companies are pure play, concentrating on the Marcellus/Utica, and both companies are headquartered in State College, PA. On Monday Rex Energy issued its third quarter 2015 update. The company lost nearly $95 million for 3Q15–but the entire thing was a paper loss, writedowns for the value of their assets because the price of natural gas took a nosedive. Production for the company was up 15% in 3Q15 over the same period a year earlier. Some of the biggest news we spot in the update is that Rex has been able to squeeze the costs all the way down to $5.2 million per Marcellus well they drill. Also big news: Rex put into production their very first Utica Shale well, drilled in Lawrence County, PA. Here’s the particulars…
Read More “Rex Energy 3Q15: $95M Paper Loss, 1st Utica Well Online, Prod Up 15%”
Energy Companies | Warren Resources

Warren Res. 3Q15: $190M Paper Loss, Completes 2 Upper Marcellus Wells
November 11, 2015November 11, 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, issued their third quarter 2015 update and held an analyst call earlier this week. The company experienced a $189.5 million loss for the quarter, most of that being a paper loss due to writing down the value of assets (the pattern we’ve seen with almost every other Marcellus/Utica driller in 3Q15). Warren only spent $3.8 million in the Marcellus in 3Q15–to finish two drilled “Upper Marcellus” wells (see Warren Resources Releases Details on 2 “Upper” Marcellus Wells). Below are select portions of both the 3Q15 press release update and from the analyst conference call transcript…
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Energy Companies | Noble Energy

Noble Energy’s VP of Exploration Sells $224K of Company Stock
November 10, 2015November 10, 2015

Noble Energy’s vice president for exploration, Michael W. Putnam, sold 5,984 shares of company stock last Thursday netting him $224K. After the sale, Putnam still owns 21,618 shares of stock worth $809K. Here’s the details on the latest “insider selling” to happen in the Marcellus/Utica…
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Energy Companies | Gulfport Energy | Ohio | Pennsylvania | Statewide OH | Statewide PA

Rumor: Gulfport Energy Suspends Some (All?) Ohio Utica Drilling
November 9, 2015November 9, 2015

Last week Gulfport Energy released their third quarter 2015 financial and operations results (see today’s companion story). If you read the full update, you notice Gulfport is not taking delivery of a fifth Utica Shale drilling rig in early 2016 as previously planned–which connotes they will continue to operate the four rigs currently in operation now. But therein lies the rub. MDN received a tip last Thursday from a reader that said: “I received word last night that Gulfport Energy is going to suspend operations in Ohio until the END of 1Q 2016. This would also include their service provider company, Stingray, which just had approximately 150 layoffs already. This news should break today once they inform the employees of the ‘layoff’.” MDN has not seen nor heard anything in the news about Gulfport suspending all drilling operations. We did find mention from September that Stingray had filed a WARN notice they would be laying off 47 employees in Pennsylvania and Ohio. We’re not sure what to make of the rumor…
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Energy Companies | Gulfport Energy

Gulfport Energy 3Q15: Shuts-in 100 Mmcf/d of Production
November 9, 2015November 9, 2015

Gulfport Energy, a major Utica Shale driller, released their third quarter 2015 update last Thursday and held an analyst conference call on Friday. Among the things we learn from their public statements: in all categories (natural gas, oil, NGLs), Gulfport’s production was up dramatically from the same quarter a year ago. However, the price the company gets for those commodities is down rather dramatically. The company experienced a major paper loss for 3Q15 due to write-downs on the value of its assets (because of low prices). Gulfport announced it will “voluntarily curtail” 100 million cubic feet equivalent per day (MMcfe/d) of production beginning November 1, 2015 through early 2016, due to low prices. Better to wait and sell it later at a higher price. They’re also going to forgo a fifth drilling rig in the Utica, planned to start up in 2016. Bummer. Here’s the 3Q15 update for Gulfport…
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Anti-Drilling/Fossil Fuel | Energy Companies | Exxon Mobil | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY AG Targets/Accuses ExxonMobil of Lying about ‘Climate Change’
November 6, 2015November 6, 2015

Eric Schneiderman, NY AG

We’ve written before about the lawless Attorney General from New York–Eric T. Schneiderman. He attacks his own constituents like landowners in the state (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo), threatened the Delaware River Basin Commission that he would sue them if they allowed fracking (see NY AG Schneiderman Threatens New DRBC Lawsuit over Fracking), and he regularly bullies oil and gas companies (see NY Attorney General Schneiderman Subpoenas Shale Drillers and More on NY AG Schneiderman’s Bullying of Anadarko & EOG Resources). Schneiderman has just performed a breathtaking act of chutzpah: He’s launched an investigation and subpoenaed ExxonMobil, the largest oil company in the United States (4th largest in the world), accusing them of making false statements about so-called man-made global warming. He’s saying they contribute to global warming and they’re lying about their role in it–that they’ve made false statements to the public that contradict what their own internal research has found. That is, he is using the same strategy used against tobacco companies 20 years ago…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter Refinances Again, Dodges a Bullet…Just Barely
November 6, 2015November 6, 2015

Magnum Hunter Resources (MHR) issued an interesting press release yesterday to notify investors that they dodged a bullet–for the moment–by refinancing certain loans and getting a new $60 million loan which will let them make their $29 million bond payment on Nov. 15 (see Magnum Hunter’s Latest Woes: More Investor Unrest, $29M Payment Due). The statement also said in light of “ongoing discussions regarding its capital structure” they won’t issue a press release on third quarter financials, and they won’t hold a conference call with investors. Not a good sign. One analyst we read rhetorically asks, Does this mean they avoid bankruptcy? “The short answer is NO,” was his reply. He maintains “working on capital structure” means they are headed for a prepackaged bankruptcy. The only question is, when will it happen? Here’s the latest MHR statement in what (sadly) feels like a death watch…
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Energy Companies | Rice Energy

Rice Energy 3Q15: $59M Profit, $750M LOC, Selling Gas Outside NE
November 6, 2015November 6, 2015

Rice Energy, a very young but important pure play driller in the Marcellus/Utica, released its third quarter update yesterday. Bucking the trend of other northeast drillers, Rice earned $119 million in profit before interest, taxes and all that jazz (called EBITDAX), and they earned $59 million after all that jazz. In the black. No paper loss. It’s all good. One of the secrets to Rice’s success is that they’re selling their gas for an average of $0.38 higher per Mcf than others because of deals with the REX and Texas Eastern pipelines that carry Rice’s gas to markets outside of Appalachia. Production was 609 million cubic feet equivalent per day (Mmcfe/d) in 3Q15. The company reports expanding their line of credit at the bank to $750 million and transferring ownership (called a “drop down”) of their water services business from Rice Energy the driller to Rice Midstream the subsidiary, netting Rice Energy a nifty $200 million on paper. In essence they transferred money from one pocket to another. Here’s the full update from one of our favorite Marcellus/Utica drillers…
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Energy Companies | Gastar Exploration

Gastar 3Q15: Production Up but Still Shopping Marcellus/Utica
November 6, 2015November 6, 2015

Yesterday Gastar Exploration, with active drilling programs in the Marcellus/Utica and in the Midcontinent region, issued their third quarter 2015 financial and operational update. What do we glean from it? The company lost $191.8 million for the quarter–but almost all of it was a paper loss and not actual money out the door (from writedowns). As we’ve previously noted (see Gastar Puts All Marcellus/Utica Assets (Leases/Wells) Up for Sale), Gastar continues to shop their Marcellus/Utica assets and said as much in this update. Net production in the northeast rose in 3Q15–8,000 barrels of oil equivalent per day, or Boe/d in 3Q15 vs 5,300 Boe/d in 3Q14. They didn’t drill a single new well in 3Q15 nor will they drill any in 4Q15 and for the foreseeable future. They’re trying to sell it…
Read More “Gastar 3Q15: Production Up but Still Shopping Marcellus/Utica”
Carrizo Oil & Gas | Energy Companies

Carrizo O&G 3Q15: No New Drilling in the Utica/Marcellus
November 6, 2015November 6, 2015

Carrizo Oil & Gas, a Houston-based driller, issued their third quarter 2015 financial and operational update on Wednesday. Carrizo actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. Carrizo reports losing $708.8 million in 3Q15, but like other drillers, it was a paper loss–a requirement to reevaluate and write down the value of their holdings based on low oil and gas prices. According to the update, Carrizo didn’t drill or complete any new wells in the Utica or Marcellus during 3Q15, nor do they plan to any time soon. They’re concentrating their time and effort in oil plays like the Eagle Ford. Below are select portions of yesterday’s update applicable to the Utica/Marcellus…
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Energy Companies | Energy Services | National Fuel | Seneca Resources

NFG Update: Seneca Paper Loss, Production Shut-in; New Pipes Done
November 6, 2015November 6, 2015

National Fuel Gas Company, parent of driller Seneca Resources and also an important midstream (pipeline) company, issued their quarter update yesterday. We always have to explain this. NFG counts their quarters different. Everyone else counts July through September as a calendar year third quarter. For NFG, it was their fourth quarter fiscal year. The company had a big $188 million loss for their 4Q15, vs a $57 million gain in 4Q14. However, like many others, NFG’s was a “paper loss” and not an actual money-out-the-pocket loss. The decrease is largely due to a $241 million writedown of the value of Seneca’s oil and natural gas reserves. Other news: Seneca’s production was down in 4Q15 because they decided to voluntarily shut-in 13 billion cubic feet (Bcf) of production they otherwise could have sold–due to the low price of natural gas they receive in the Marcellus. Seneca’s proved reserves (available to drill) went up 27% for fiscal year 2015. On the pipeline front, as of Nov. 1 NFG put the Westside Expansion & Modernization and Tuscarora Lateral projects into service, and they’re close to completing the Northern Access 2015 expansion project, a joint project with Tennessee Gas Pipeline’s Niagara Expansion. Here’s the full update with plenty of interesting news for the Marcellus/Utica…
Read More “NFG Update: Seneca Paper Loss, Production Shut-in; New Pipes Done”
Energy Companies | Southwestern Energy

Southwestern Energy’s Stock Sees Spike Up in Short Selling
November 6, 2015November 6, 2015

From time to time MDN notices and highlights “short selling” stories. What’s short selling? In essence, it’s when traders borrow and sell a stock so they can turn around and buy it back at a lower price, returning it to the party they “borrowed” it from, making a tidy profit. It is a trader betting that a stock’s price will go down and not up (see our explanation here: “Short Selling” – An Important Signal for Marcellus-Related Companies). On average, short selling of stocks for all companies in all industries is typically 5-6% of trading volume. Recently, oil and gas stocks, as an industry, have seen an average of 12% short selling of their stocks. When a company’s stock sees a spike in short selling, it’s a signal that “the market” believes that stock price is heading lower, which can mean trouble for the company. Southwestern Energy is the latest Marcellus/Utica driller to see a spike up in short selling of its stock. How much?…
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