Rex Energy’s Bankers Recommit to $350M Credit Line
Pennsylvania-based Marcellus driller Rex Energy, which we’ve long called our “little energy company that could, and does,” has had a string of bad news this year. Even though production was up 61% in the second quarter of 2015, revenue was down 37% (see Rex Energy Financial Update for 2Q15: Rev Down 37%). Rex’s stock is down more than 80% over the past year, down 37% in just the past 3 months (see Analyst Says Don’t Worry Even Though Rex Energy’s Stock Down 80%). It should be pointed out that Rex is not the only company facing tough times since the price of oil and gas crashed a year ago. Even with plenty of bad news, here is a spot of good news for Rex: the company’s bankers aren’t throwing in the towel just yet…
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Is Marcellus drilling about to come to a suburb of Pittsburgh? It appears the answer to that is a resounding, “Yes!” EQT, according to a landman that works for the company, plans to put a mega drill pad with up to 14 wells on an abandoned golf course in the eastern burbs of Allegheny County. EQT has approached neighbors surrounding the property, attempting to sign them to leases. Predictably, some of the neighbors are for it, and some are against it…
Magnum Hunter Resources has become the third Marcellus/Utica drillers (out of eight) on David Fessler’s “Oil Company Death List” (see 
Midstream giant Williams and drilling giant Chesapeake Energy are cuddling a little bit closer in the Ohio Utica Shale. Williams announced today they have signed an agreement with Chesapeake to run gathering pipelines in a new area of the dry gas Utica for Chesapeake in return for signing a contract that binds Chessy to using Williams until 2035. Williams was already gathering natural gas for Chessy on 140,000 acres of Utica Shale land in Ohio. This agreement extends the time on that 140,000 acres by adding another 20 years, and adds another 50,000 acres to the mix…
EV Energy Partners (EVEP), an upstream master limited partnership (MLP) created by EnerVest, announced they will purchase oil and natural gas properties from the mothership EnerVest in four different locations, one of them being Appalachia (i.e. Marcellus/Utica). EVEP will pay the parent company $259 million for properties in Appalachian Basin, San Juan Basin, Michigan and Austin Chalk with cumulative estimated proved reserves of 302 billion cubic feet equivalent (Bcfe)…
The McKeesport City Council (Allengheny County, near Pittsburgh) voted Wednesday evening to lease 133.257 acres of Renziehausen Park for drilling under (not on) for Marcellus Shale gas by EQT. The city will receive a $3,000 per acre signing bonus–$400,000 total. No word on what kind of royalty rate they agreed to. The city has been grappling with whether or not to lease the park for more than a year. The vote was 6-1. In typical fashion, one anti-drilling resident attending the meeting wouldn’t shut up and had to be escorted out of the meeting by a police officer. Two other loud mouth anti-drillers continued to spit and sputter and comment from the audience, speaking out of turn (but they weren’t thrown out). Here’s how it went down…
We have an update on the story we broke yesterday–that Chief Oil & Gas is closing its Wexford (Pittsburgh) office (see 
National Fuel Gas (NFG), the Buffalo-based utility giant with both a drilling subsidiary (Seneca Resources) and a midstream/pipeline subsidiary (Empire Pipeline) filed an application with the Federal Energy Regulatory Commission (FERC) in March for a pipeline project they call Northern Access 2016. The $451 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. We have a full description below for all of the new construction, modifications and add-ons that are part of the Access Northeast 2016 project. The pipeline, when complete, will flow Marcellus Shale natural gas from Pennsylvania northward to New York and on into Canada. Although NFG has bent backwards, forwards and has contorted itself into just about every yoga position there is to accommodate residents around Pendleton, nearby residents are still opposed to NFG building a new compressor station anywhere near them…
Ivan and Kathy Dubrasky are anti-drillers located in Pulaski Township (Lawrence County), PA, just across the border from Ohio and close to Youngstown. They recently hosted a tiny anti-drilling rally at their property (see 
This is breaking news. MDN has received a tip that Chief Oil & Gas, a sizable and active driller in the Pennsylvania Marcellus Shale, has just closed its Appalachian regional office in Wexford, PA (near Pittsburgh). Unfortunately we don’t have any further details at this time. We don’t know what it means for the future of Chief’s Marcellus drilling program. We don’t know what has happened to Chief’s workers. Stay tuned and we’ll bring you more when we hear more. Below is a chart from the 
Shell continues to act as if it has already made the decision to build a $2-$3 billion ethane cracker plant complex in Beaver County, PA, even though they continue to refuse to say they’ve made a decision. What’s our evidence? In June Shell finally purchased the land where the cracker will be built, the former Horsehead zinc smelter property in Potter that will be the primary location of the cracker plant IF it gets built (see 
Pennsylvania-based Marcellus driller Rex Energy, which we’ve long called our “little energy company that could, and does,” has taken a beating in the stock market. Rex’s stock is down more than 80% over the past year (down 37% in the past 3 months) and the company appears on David Fessler’s “Oil Company Death List” (see 
We don’t know how he does it, but it seems Aubrey McClendon can charm money out of just about anyone. Not even two weeks ago we told you that McClendon cut a deal to lease 21.5 million acres in Australia for shale drilling (see 
Gastar Exploration, which concentrates its shale drilling program in Oklahoma and West Virginia, earlier this year announced they would not drill any new wells in the Marcellus/Utica until commodity prices in Appalachia improve (see 
It was only three weeks ago that MDN reported Alpha Natural Resources, a coal company driven into bankruptcy by Barack H. Obama’s draconian EPA, filed for bankruptcy (see