Energy Companies

Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Wastewater | West Virginia

French Company Confirms Building $275M Wastewater Plant for Antero
October 22, 2015October 22, 2015

In August MDN brought you the news that Antero Resources has decided to build a new state-of-the-art frack wastewater treatment plant in Doddridge County, WV for $275 million (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The plant will process up to 60,000 barrels per day of flowback and brine (or “produced water”). We also told you there is a bit of controversy about the project. Antero selected French-based Veolia to build and operate the plant instead of using WV-based Fairmont Brine Processing (see Did Antero Pull the Rug Out from Under Fairmont Brine Processing?). Land clearing was already underway at the Antero site, and permits already applied for, when the news broke in August. Which makes it kind of strange when we saw a press release issued this morning from the Paris, France-based Veolia touting that Antero has selected them to build the plant. Was there ever any doubt? Why did Veolia wait two months to issue their own press release that essentially repeats the details in the earlier Antero press release? Here’s the Veolia press release, fwiw…
Read More “French Company Confirms Building $275M Wastewater Plant for Antero”
Energy Companies | Exxon Mobil

Exxon: We DO Believe in Mythical Global Warming! We Do We Do!
October 22, 2015October 22, 2015

We find it kind of funny, and kind of sad, that the mighty Exxon Mobil is reduced to groveling like they did yesterday in a press release in which they say, in essence, “We DO believe in global warming. We do we do we do!” Apparently the company was stung by criticism from from a couple of radical anti-fossil fuel rags–InsideClimate News and the Los Angeles Times–and by follow-on criticism from four communists, two in the United States Senate and two in the House of Representatives: Sen. Bernie Sanders (running for president), Sen. Sheldon Whitehouse, Rep. Ted Lieu and Rep. Mark DeSaulnier. What? Communists in our own government? No, we’re not mistaken nor are we using hyperbole. We’re using accurate language. Look up the definition of communism and tell us we’re wrong. Radical environmentalism is the new home of communism and these four politicians are disciples of that philosophy. Following mischaracterizations of Exxon’s true believer status by the anti-fossil fuel rags, the four commie pols piled on, so Exxon, the largest publicly traded oil & gas company in the world (so they claim), felt it had to defend it’s true-believer status in a press release, which is really kind of pathetic…
Read More “Exxon: We DO Believe in Mythical Global Warming! We Do We Do!”
Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess Quietly Shops the Rest of Their Ohio Utica Acreage
October 20, 2015October 20, 2015

In January 2014 Hess Corporation sold 74,000 of its 95,000 100%-owned Utica Shale acreage leases to Aubrey McClendon’s American Energy Partners for $924 million (see Hess Sells 74,000 OH Utica Shale Dry Gas Acres to Mystery Buyer). After the sale, Hess still owned 21,000 acres of leases plus a 50% share of a joint venture with CONSOL Energy in another 65,000 acres. In January of this year, Hess (like other drillers) cut way back on their budget for Utica drilling (see Hess Cuts Utica Drilling Budget 42% for 2015). It appeared that Hess was still in love with the Utica as recently as August when Hess’ top managers said some flattering things about their Utica acreage (see Hess Says Harrison County, OH “Truly the Sweet Spot” of the Utica). Perhaps that was a buildup to selling their remaining position–because that’s exactly what they’re now doing. According to unnamed sources who have seen an offering document being circulated, Hess is shopping all of their remaining Utica acreage, including the jv with CONSOL…
Read More “Hess Quietly Shops the Rest of Their Ohio Utica Acreage”
Energy Companies | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Pennsylvania General Energy | Wastewater

Fed Judge Overturns Grant Twp, PA Ban on Injection Wells
October 19, 2015October 19, 2015

The radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) does its best to trick townships into passing illegal bans. In 2013 the CELDF fooled Highland Township in Elk County, PA into passing a ban on wastewater injection wells. They also tricked Grant Township in Indiana County, PA to do the same thing. Both towns are in court defending their illegal actions. One of the idiotic legal tactics used by the CELDF in both cases is to claim that an ecosystem is a “person” under the law–a person who can file to join the town’s lawsuit in an effort to protect itself (see It Speaks! An “Ecosystem” has Filed to Join a Lawsuit in PA). It’s an asinine notion. Will the tree in my front yard sue me for cutting a branch off it? Will my gravel driveway sue me if I decide to pave it? Get real. A federal judge has just ruled in the Grant Twp case and found (a) the town’s ban on injection wells is illegal, and (b) the ecosystem’s “interests” have been well-represented by the town in the case with no need for the ecosystem to join the lawsuit. The judge, in sidestepping whether or not an ecosystem is actually a person, kind of laughed at the notion–if you read between the lines…
Read More “Fed Judge Overturns Grant Twp, PA Ban on Injection Wells”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Short Selling of Magnum Hunter’s Stock Continues Big Decrease
October 19, 2015October 19, 2015

Two weeks ago MDN told you about a positive trend for Magnum Hunter Resources’ (MHR) stock–traders were doing less “short selling” of the stock (see Positive Sign: Short Selling of Magnum Hunter’s Stock Decreases). At the time we noted 26.4% of MHR’s stock was being sold short (national average for all stocks is around 5-6% and the average for oil and gas companies lately has been around 12%). We have an update: short selling of MHR’s stock as of Sept. 30 was down again, dramatically, and stood at 19%. Which means traders believe prospects for the company’s financial health are improving. That doesn’t mean the company doesn’t face challenges. As we told you last Monday, MHR appears to be getting ready to either sell itself or file for bankruptcy (see Magnum Hunter: Preparing to Sell, or Filing for Bankruptcy?). Still, short selling is an important signal of what the financial markets think about a particular company–and having your stock go from 26% to 19% in short sales is a big deal–in the right direction…
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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

SWPA Landowners Allege Range Withheld Info in Water Well Case
October 16, 2015October 16, 2015

MDN has been highlighting stories and writing about potential water well contamination by Range Resources at their Yeager well and wastewater impoundment site in Amwell Township (Washington County), PA since 2012 (see MDN’s list of Range/Yeager stories here). Residents living nearby have claimed their wells were contaminated, and their health affected. Range finally closed the wastewater impoundment at the site last year (see Range Resources to Begin Closing Yeager Impoundment on Monday). A judge ordered Range to produce a list of all chemicals used at the site since it was first drilled. One of the things Range didn’t disclose, according to the residents living nearby, was that the company used “tracer” chemicals when they originally drilled the well in 2009. Tracers are used to track the presence of fracking fluids. The PA Dept. of Environmental Protection (DEP) eventually ruled the water wells near the Yeager site were not contaminated by Range’s activities. The landowners are now appealing that decision based on this “new” evidence that Range used tracers, but never disclosed the use of tracers that investigators could have used in looking for evidence of contamination. The neighbors are alleging that Range engaged in a cover-up to keep what might have been damning evidence from the plaintiffs…
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Energy Companies | EQT Corp | Industrywide Issues | Litigation | Pennsylvania | Regulation | Washington County

PA DEP Says 2010 EQT Spill Polluted Water Spring, EQT Appeals
October 16, 2015October 16, 2015

The Pennsylvania Dept. of Environmental Protection (DEP) seems to have a grudge against EQT. Last October the DEP levied a $4.5 million fine against EQT over a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). At the time it was the biggest-ever fine by the DEP, since surpassed by an even bigger fine against Marcellus driller Range Resources. Right after the DEP levied its fine, the now-indicted-on-felony charges Attorney General, Kathleen Kane, issued an arrest warrant against EQT for the same thing (see PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT). These days Kane is doing all she can to stay out of jail herself. In September, the DEP issued a new order/finding that says EQT spilled drilling fluid on the ground at a drill site that seeped into a local fresh water spring, polluting it to the point it’s no longer usable. Thing is, the accidental spill happened in 2010–more than five years ago! How and why in the world did it take five years to investigate something like that? EQT is pushing back. Earlier this week they filed an appeal…
Read More “PA DEP Says 2010 EQT Spill Polluted Water Spring, EQT Appeals”
Carrizo Oil & Gas | Energy Companies

Carrizo Floats 6.3M Shares of New Stock, Hopes to Raise $212M
October 16, 2015October 16, 2015

For the past few months MDN has noted several large sales of Carrizo Oil & Gas stock by company CEO Chip Johnson, totaling nearly $2 million of stock sold since June (see Carrizo O&G CEO Chip Johnson Continues to Sell His Company Stock). Carrizo has drilling operations in both the Marcellus and Utica Shales. Yesterday Carrizo announced they are issuing up to 6.1 million new shares of company stock. Not long after the original announcement, Carrizo issued a second announcement “upsizing” the stock offering to 6.3 million shares. They hope to get $212 million, which works out to be an average of $33.49 per share. As of this morning shares of Carrizo on NASDAQ sold for $40.96. The company says they will use the proceeds to pay off debt. What we wonder is, will Chip Johnson be among the buyers of the new stock–selling high and buying low?…
Read More “Carrizo Floats 6.3M Shares of New Stock, Hopes to Raise $212M”
Belmont County | Energy Companies | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Gulfport Drops Lawsuit Against Barnesville, OH Over Water Sale
October 16, 2015October 16, 2015

In 2012, Barnesville (Belmont County), OH signed a contract with Gulfport Energy to sell Gulfport water from the Slope Creek Reservoir for 1 penny per gallon. Earlier this year Gulfport wanted to begin drilling in the area, following a joint venture agreement with Antero Resources. But Barnesville said the water level in the reservoir is too low and wouldn’t sell any to Gulfport, so Gulfport sued and in March the whole matter ended up in federal court (see Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir). In May Barnesville hired high-priced lawyers from Columbus to help them defend themselves–lawyers they hired using money from selling water to another driller (see Barnesville, OH Hires Costly Columbus Lawyers in Gulfport Lawsuit). We hadn’t heard anything further since that time–the wheels of justice turn very slooooowly. Gulfport still hasn’t given up on wanting to buy the water, but on Saturday they did drop the lawsuit under an agreement with Barnesville (and Antero) to sit down and work out their differences, outside of a courtroom…
Read More “Gulfport Drops Lawsuit Against Barnesville, OH Over Water Sale”
BG Group | BP | Energy Companies | Equinor/Statoil | Reliance Industries | Shell | Total

10 Sell-Out Big Oil Companies Support Paris Global Warming Treaty
October 16, 2015October 16, 2015

Eight CEOs from the Gang of 10

In a repugnant and self-serving public relations stunt, the CEOs for 10 of the world’s largest oil and gas companies are pushing for “an effective climate change agreement to be reached at next month’s 21st session of the United Nations (UN) Conference of Parties to the UN Framework on Climate Change (COP21)” at the meeting being held in Paris in early December. That is, they’re pretending they believe in the total hoax that mankind is causing global warming and therefore all of the nations of the earth, including the United States, should give up their sovereignty to achieve something they have no control over–whether or not global average temps go up more than 2 degrees Celsius by the end of this century. Conveniently, most of us won’t be alive to see whether or not that ever happens. Fortunately none of the big oil companies signing this asinine statement are U.S.-based companies, although they all have serious (and large) operations in the U.S. Who are the Gang of 10?…
Read More “10 Sell-Out Big Oil Companies Support Paris Global Warming Treaty”
Energy Companies | Gastar Exploration | Marshall County | West Virginia | Wetzel County

Gastar Puts All Marcellus/Utica Assets (Leases/Wells) Up for Sale
October 15, 2015October 15, 2015

What a difference a few months, or even a week, can make. In August, Gastar Exploration, which owns roughly 60,000 acres of leases in the Marcellus/Utica mostly in Marshall and Wetzel counties in West Virginia, was talking up their drilling program in the northeast (see Earnings Call Reveals More Details on Gastar’s Marcellus/Utica Plans). Just last week we reported on Gastar CEO Russ Porter’s talk at OGIS in San Francisco about the Marcellus/Utica and what’s ahead for his company (see Gastar CEO Porter Talks about Marcellus/Utica at San Fran Conf). Lately it seems like Gastar, which also drills in the Mid-Continent region of the country, has been giving a little more love to Mid-Continent area because gas prices in the northeast remain stubbornly low. Looks like the Mid-Continent is about to get all of Gastar’s love. The company announced yesterday they’ve put all of their Marcellus/Utica assets up for sale, including leases and drilled/producing wells…
Read More “Gastar Puts All Marcellus/Utica Assets (Leases/Wells) Up for Sale”
Beaver County | Belmont County | Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell

Expert Tells Utica Conference NE Will See “3 or 4” Cracker Plants
October 14, 2015October 14, 2015

An expert speaking at the Utica Summit III yesterday in Stark, OH said he believes the Marcellus/Utica region will see three, possibly four, ethane crackers built. Tom Gellrich of consulting firm TopLine Analytics, a company that “closely follows ethane markets,” said he thinks the first ethane cracker to get built will be the Shell cracker plant in Beaver County, PA…
Read More “Expert Tells Utica Conference NE Will See “3 or 4” Cracker Plants”
Energy Companies | Stone Energy

Bankers Reaffirm Stone Energy’s $500M Line of Credit
October 14, 2015October 14, 2015

Stone Energy is one of the smaller drillers in the Marcellus/Utica, drilling 38 wells in the Marcellus and a single Utica test well in 2014. Early in 2015 Stone said they wouldn’t be drilling any new Marcellus/Utica wells beyond the first quarter (see Stone Energy Will Suspend Marcellus/Utica Drilling after 1Q15). Even though they aren’t currently active in the region, it’s still good to keep tabs on Stone, as we expect they will become active again at some point. For that reason, we’re reporting that Stone announced yesterday their bankers have “reaffirmed” the company may continue to borrow up to $500 million. That is, Stone continues to have a $500M line of credit, which is important for new drilling projects…
Read More “Bankers Reaffirm Stone Energy’s $500M Line of Credit”
Accidents | Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Litigation | Triad Hunter | Tyler County | West Virginia

Family of Man Who Died in 2013 Eurkea Hunter Accident Gets $18M
October 13, 2015October 13, 2015

In April 2013 MDN reported on the tragic death of 56-year-old Bruce Phipps from Marietta, OH who was working at a Eureka Hunter “pig” (Pipeline Inspection Gauge) receiving station near near Wick (Tyler County), WV (see Flash Fire at Pipeline Station in WV Kills 1, Injures 3 Others). Later, Pennsylvania resident Raymond Miller, another of the injured workers, also died (see Second Death from Flash Fire at WV Pipeline Station). Phipps’ widow sued Eureka Hunter and several other companies involved with the pipeline and last week all parties settled and the Circuit Court of Ohio gave its stamp of approval. Phipps’ widow and her family will receive $18 million, minus one-third ($6 million) that goes to the lawyers…
Read More “Family of Man Who Died in 2013 Eurkea Hunter Accident Gets $18M”
Chesapeake Energy | Energy Companies

Chesapeake Appoints Former Deptartment Store CEO as New Chairman
October 13, 2015October 13, 2015

The last vestiges of the Aubrey McClendon era at Chesapeake have now been swept away. In June 2012, Aubrey was demoted from his position as chairman of the board of directors. Archie Dunham, the retired chairman of ConocoPhillips, was tapped to replace him and help the company navigate the transition from dumping McClendon (see Chesapeake Energy’s Board Changes, Archie Dunham New Chairman). We see how it’s worked out with a pair of corporate raiders (Carl Icahn and Mason Hawkins) in charge: Chesapeake has fired thousands of people, sold off everything but the kitchen sink, yet remains in debt up to its eyeballs. The post-Aubrey transition is now complete. The corporate raiders have just retired Archie Dunham–someone who at least comes from the oil and gas industry–and replaced him by promoting Brad Martin to be the new chairman of the board. Who’s Brad Martin? He used to run a department store chain…
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Antero Resources | Commodity Price | Energy Companies | Industrywide Issues

Antero 3Q15 Operational Update: Production Up 39%, Gets $3.99/Mcf
October 13, 2015October 29, 2015

Today Antero Resources became the first major Marcellus/Utica driller to issue their third quarter 2015 update. The company reports a 39% increase in production over the same quarter last year, and a 1% increase from 2Q15. They must have some sharp financial types at Antero because the average price they received for their natural gas was $3.99 per thousand cubic feet (Mcf) in 3Q15, which is $1.22 higher than gas sold for in the NYMEX futures market. What that means is that they’re really good at hedging and using complicated financial instruments called derivatives in order to get a higher price for their gas than many others get. Good for them! However, not part of the update released today are Antero’s income statement and balance sheet–which will show the true financial condition of the company. They’re holding that back until the quarterly analyst phone call on Oct. 28. Here’s the operational report they filed today, with details about their Marcellus and Utica operations. We also spotted a new 10-year agreement to LNG to Chubu Electric via the Freeport (TX) LNG terminal…
Read More “Antero 3Q15 Operational Update: Production Up 39%, Gets $3.99/Mcf”