Energy Companies

Energy Companies | EQT Corp | Industrywide Issues | Pipelines | Regulation | Statewide VA | Virginia | West Virginia | Wetzel County

Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time
October 26, 2015October 26, 2015

Click on map for larger version

It’s finally official. Although the length of the pipeline changed from 330 miles to 301 miles, and although the number of project partners expanded from the original EQT and NextEra Energy to include WGL Holdings, Vega Energy Partners, and RGC Resources, and although over 100 landowners blocked survey access (later taken to court to force access)–the $3.5 billion Mountain Valley Pipeline (MVP) stretching from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA filed an official application with the Federal Energy Regulatory Commission last Friday. Now it’s just a matter of time. Yes it will take a few years to get it approved and built, but the most important step has been accomplished…
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Allegheny County | Armstrong County | Energy Companies | EQT Corp | Marion County | Pennsylvania | Utica Shale | West Virginia | Wetzel County

EQT Dumps Marcellus Drilling, Concentrates on the Utica in 2016
October 23, 2015October 23, 2015

In addition to releasing their third quarter 2015 results yesterday, the top brass from EQT also held an analyst phone call. On that call we got updated details from EQT’s president of exploration and production, Steven Schlotterbeck, about the single highest initial-producing Utica Shale well ever drilled, EQT’s Scotts Run 591340. We also heard from Steve about two more Utica wells they’re currently drilling–one in Greene County, PA (about five miles from the Scott’s Run well), and one in Wetzel County, WV. But the big news from yesterday’s call came from EQT CEO David Porges. He said EQT has decided to suspend drilling in central PA and in the Upper Devonian–anyplace outside of their “core” Utica locations. Essentially, EQT is giving up on the Marcellus (for now) and going after the Utica instead. This is certainly big news and affects landowners in Marcellus-only areas–pretty much any place outside of southwest PA and the northern panhandle of WV. Porges says IF the Utica pans out as expected, it will be bigger than the Marcellus production-wise over time. EQT’s current thinking is that they will trim their drilling program to concentrate on drilling 10-15 Utica wells in 2016…
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Energy Companies | Southwestern Energy

Southwestern Energy 3Q15: Production Up 27%, Net Loss of $1.8B
October 23, 2015October 23, 2015

Yesterday Southwestern Energy Company, one of the the major players in the Marcellus Shale, posted its third quarter 2015 earnings and operational update. In many ways Southwestern is one of the most exciting companies drilling in the northeast. A year ago Southwestern purchased 413,000 acres and 435 operating and non-operating wells from Chesapeake Energy in the southwestern portion of the Marcellus for $5.4 billion (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). Early this year they picked up 46,700 acres and 63 operational wells from WPX Energy in the northeastern part of the play for $300 million (see WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern). Then the company did something virtually no other company has done in 2015–they INCREASED their drilling program in the Marcellus (see Southwestern’s Contrarian Plan: Double Down on Drilling in the Marcellus). Has it paid off? Time will tell. We can tell you that the company is producing more natural gas than ever–130 billion cubic feet equivalent per day in the Marcellus/Utica. Put another way, that’s 1.4 Bcf/d, each and every day. We have plenty of details on their drilling program below. However, on the financial side, whereas the company made $211 million in net income in 3Q14, they lost $1.766 billion in 3Q15. That kind of bleeding will have to stop…
Read More “Southwestern Energy 3Q15: Production Up 27%, Net Loss of $1.8B”
Coterra Energy (Cabot O&G) | Energy Companies

Cabot O&G 3Q15: Production Up a Little, Profits Down a Little
October 23, 2015October 23, 2015

Cabot Oil & Gas, one of the best-performing Marcellus Shale drillers in the entire play, issued their third quarter 2015 update today. They did pretty well all things considered. The company reports a slight increase in production of 7% year over year. However, the even the mighty Cabot can’t overcome wicked low prices for natural gas in northeastern Pennsylvania–the lowest in the country. Cabot made just over $100 million in profit in 3Q14. This year? They lost $15 million–which ain’t all that shabby compared to just about every other driller in the northeast. By comparison Southwestern, with more acreage and a larger drilling program, lost $1.8 billion in 3Q15. Yikes! Here’s the update issued today by Cabot…
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Energy Companies | EQT Corp

EQT 3Q15: Production Up 27%, Net Loss of $50M
October 23, 2015October 23, 2015

EQT published their third quarter 2015 financials and operating update yesterday. Like Southwestern and other Marcellus/Utica drillers releasing their updates, EQT shows good news, like an increase in production (27% higher in 3Q15 than in 3Q14). However, there’s also the bad news: EQT got 55% less money for their gas in 3Q15 than they did a year ago. Consequently it shows up in the bottom line. In 3Q14 EQT had a $77 million profit, in 3Q15 they had a $50 million loss. Here’s the full update with select financials…
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Accidents | Crime | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | XTO

XTO Criminal Trial for Accident Spill in PA Delayed Until 2016
October 23, 2015October 23, 2015

Not long after she took office, Pennsylvania’s Democrat Attorney General, Kathleen Kane, brought criminal charges against XTO Energy for an accidental spill in Lycoming County, PA that happened two years before she was in office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Kane herself will likely soon be forcibly removed from office because she lied under oath, a criminal offense called perjury, and has now lost her license to practice law (see End is Near: PA AG Kane’s Law License Suspended by Supreme Court). The last we heard anything about Kane’s sham case against XTO is that Democrat Lycoming County Judge Marc Lovecchio refused to dismiss the charges against XTO in April (see Democrat County Judge Rules PA AG’s Case Against XTO Can Proceed). We have a development to report. XTO has been trying to work out a deal with the AG’s office to make this asinine criminal charge go away. You can be sure it involves lots of money (a government shakedown of XTO). So XTO has filed a continuance request, pushing the trial off until 2016. The judge granted the request because XTO says “meaningful discussion$” have been held, which means a trial may be avoided altogether…
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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…
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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…
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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…
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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…
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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?…
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