Energy Companies

Antero Resources | Energy Companies

Antero Hits 1.5 Bcf/d in 2Q15, Drilling 1st WV Utica Well in 3Q15
July 16, 2015July 16, 2015

Antero Resources released an operations update for the second quarter of 2015–and what a great update! Antero reports hitting a net daily production of 1,484 million cubic feet equivalent per day (or 1.5 billion cubic feet/day) in 2Q15–a 67% increase over 2Q14. During the last three months Antero drilled and completed 13 Marcellus Shale wells with an average lateral distance of 8,300 feet, and 10 Utica Shale wells with an average lateral of 10,600 feet. The company picked up another 4,400 acres of Marcellus/Utica Shale leases in 2Q15 in “liquids rich” Tyler County, WV, giving them another 67 Utica drilling locations–adding to the 1,900 Utica drilling locations they have on 181,000 acres of leases they own in WV and PA. Antero says they will spud (begin drilling) their very first WV Utica Shale well in Tyler County during the third quarter of this year. Below is the full update, followed by their latest PowerPoint presentation for July with lots of great charts, graphs and maps…
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CNG/LNG | Energy Companies | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Shell

KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?
July 16, 2015July 16, 2015

Kinder Morgan, the country’s largest midstream/pipeline company, announced yesterday they are buying out Shell’s share of a joint venture in building an LNG (liquefied natural gas) export facility at the existing LNG import facility on Elba Island, Georgia–near Savannah. Currently Kinder owns 51% of the Elba Island LNG export project and Shell owns 49%. Kinder will now own 100% of the project after they pay Shell $630 million. Depending on how fast the Federal Energy Regulatory Commission (FERC) acts, Kinder believes construction will begin by the end of this year an LNG exports will begin “in late 2017.” What does this have to do with Marcellus/Utica? Maybe nothing, but we suspect something. Kinder’s arch rival Williams owns the mighty Transco pipeline that connects, via the Elba Express pipeline, to the LNG facility. Currently Elba Island imports LNG. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). We don’t think it’s much of a stretch that Marcellus Shale gas, via the Transco, will be at least some of, if not the primary, source for gas exported from the Elba facility…
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Anadarko | Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Regulation | Southwestern Energy

Antis Ask PA Gov Wolf to Stop New Drilling in Loyalsock Forest
July 16, 2015July 16, 2015

Representatives from a dozen far-left anti-fossil fuel groups sent a letter to Pennsylvania Gov. Tom Wolf on Tuesday asking him to illegally prevent drilling in the Loyalsock State Forest–where the mineral rights are owned by private individuals and not the state. Groups like PennFuture (most of whose employees now work in the Wolf Administration), the Sierra Clubbers and the League of [Liberal Democrat] Women Voters are signatories to the letter urging Wolf to wave his magic wand and prevent drilling in the Loyalsock. Of course their pleas and demands ignore the fact that drilling is already happening in many state forests–INCLUDING Loyalsock. Their objection is to the addition of more drilling in the Clarence Moore Lands area of the Loyalsock…
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Energy Companies | Penn Virginia Corporation

Penn Virginia Sells E TX Assets for $75M – Avoiding Soros?
July 16, 2015July 16, 2015

Although headquartered in Radnor, Pennsylvania (near Philadelphia), Penn Virginia Corporation is an oil and gas driller with only a small presence in the Marcellus Shale: 21,700 net acres with no drilled wells. They concentrate on oil drilling the Texas Eagle Ford Shale play. MDN told you in March that Penn Virginia’s top stockholder, the vile corporate raider George Soros, forced them to put themselves up for sale so George can line his pockets with more cash (see George Soros Finally Bullies Penn Virginia into Selling Itself). The company got an offer from BP, but rejected it as too low, just last month (see BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too). Another major investor, Lone Star Value Management, told Penn Virginia to take BP’s money, but so far they haven’t (see Major Investor Tells Penn Virginia to Take BP’s Money and Run). Amidst all of this turmoil Penn Virginia announced yesterday they’ve sold some of their East Texas “assets”–acreage and operating wells–to an “undisclosed buyer” for $75 million…
Read More “Penn Virginia Sells E TX Assets for $75M – Avoiding Soros?”
Alpha Natural Resources | Energy Companies

Rumor Mill: Alpha Natural Res. to File for Bankruptcy Next Month
July 16, 2015July 16, 2015

Just a few weeks ago MDN brought you the news that coal company Alpha Natural Resources is expanding their Marcellus Shale operation and would begin drilling within the next 30 days in the Marcellus Shale in Greene County, PA (see Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d). Was that bluster? Yesterday the Wall Street Journal reported that Alpha is in talks to get financing for filing for bankruptcy next month…
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CONSOL Energy | Energy Companies | Industrywide Issues | Jobs

CONSOL Slashes 10% of Workforce – 470 Jobs Gone
July 15, 2015July 15, 2015

We have an update on the sad news we first reported yesterday–that CONSOL Energy has made another round of layoffs (see CONSOL Energy Swings the Ax Again – New Round of Layoffs). We now have numbers to share. CONSOL is laying off approximately 10% of its entire workforce–290 jobs (i.e. people) gone in its gas and corporate operations, and 180 jobs (i.e. people) gone in its Pennsylvania coal mines. That’s 470 families facing a major economic crisis with the loss of a job. What does Wall Street do? They pop the cork and celebrate–more cash in their pockets–driving CONSOL’s stock price higher. These cuts come just three months after CONSOL previously laid off 170 people in April (see CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA). That’s a grand total of 640 people gone in the past three months. CONSOL’s comment? “These are very difficult but prudent decisions given the depressed nature of commodity prices”…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter’s #1 Stockholder Continues to Divest
July 15, 2015July 15, 2015

Last month MDN told you about one of Magnum Hunter Resources’ (MHR) major investors dumping 6.3 million shares of MHR stock (see Magnum Hunter Investor Dumps 6.3 Million Shares of MHR Stock). We have new information and a much better understanding about that investor–Relational Investors. Relational is the hedge fund for a “kinder, gentler” corporate raider by the name of Ralph Witworth. In June Witworth and Relational owned 27.5 million shares of MHR stock. Today? 17.7 million shares–a 36% reduction in the past month. According to reports, Relational is not done yet. Relational is on the way to divesting ALL of their MHR stock holdings. But that’s not as ominous as it sounds. The reason Relational is divesting all MHR stock is because they are divesting all of their holdings in all stocks. Witworth has health issues (throat cancer) and Relational is divesting so it can relaunch under new management and, presumably, re-buy stocks in many of the positions they previously held. Will that include a re-purchase of MHR stock? Who knows. One thing is for sure, as we noted in our previous story in June, Relational is taking a bath by selling MHR at these super low prices. Another observation: with this much MHR stock coming on the market, prices for the stock will likely remain low for the foreseeable future…
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Energy Companies | Warren Resources

Help Wanted: Warren Resources Launches Search for New CEO
July 15, 2015July 15, 2015

Warren Resources is a small, independent exploration and production company headquartered in New York City. Warren has ongoing drilling programs in California, Wyoming, and in the Pennsylvania Marcellus Shale. Warren’s Marcellus program is very small–they previously announced they would drill and complete two Marcellus wells in 2015 (see New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015). However, Warren has faced 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) has taken the reigns as interim CEO. Now that the company has successfully “navigated the critical liquidity and debt issues,” they’re ready to find a new, permanent CEO. The search has begun…
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Energy Companies | Energy Services | Industrywide Issues | M&A | Marathon Oil | Marathon Petroleum | MarkWest Energy | Pipelines | Processing Plants

Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum
July 14, 2015July 14, 2015

While all eyes have been on the possible hostile takeover of midstream giant Williams by another midstream giant, Energy Transfer Equity (see Williams Continues to Resist ET Offer, Talks with Other Suitors), another midstream (i.e. pipeline company) merger was quietly being arranged that has rocked the midstream world. Yesterday MarkWest Energy, with major operations in the Marcellus/Utica–MDN would call it the premier midstream company in the northeast–announced it is selling itself to Marathon Petroleum Corp.’s midstream division MPLX, a master limited partnership or MLP. The “merger” (i.e. sale of MarkWest to Marathon) will create the fourth largest MLP in the United States–worth $21 billion in market capitalization. MarkWest is twice the size of MPLX, which makes this an interesting story and truly big news for the Marcellus/Utica…
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CONSOL Energy | Energy Companies | Industrywide Issues | Jobs

CONSOL Energy Swings the Ax Again – New Round of Layoffs
July 14, 2015July 14, 2015

In April MDN was the first source to break the news that CONSOL Energy was laying off nearly 5% of its workforce, including 170 lost jobs in its CNX gas division (see CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA). Barley three months later and CONSOL has swung the ax again. We don’t know how many layoffs there have been (CONSOL won’t say), but according to the Pittsburgh Business Times, a new round of layoffs has begun…
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Energy Companies | Greene County (PA) | Pennsylvania | Vantage Energy

Vantage Energy Cuts $30M Deal to Expand Water Plant in Greene Co.
July 14, 2015July 14, 2015

An interesting story from southwestern Pennsylvania. Vantage Energy has signed a $30 million deal with the Southwestern Pennsylvania Water Authority (SPWA) in Greene County to expand the SPWA’s water plant. The expansion will allow the plant to increase water deliveries from 9.2 million gallons per day to 16.1 million gallons. The expansion will also mean new water pipelines will be run to areas not previously covered by SPWA. Vantage will get access to water for its active drilling program in the county (they own 48,000 net acres in Greene County) along with some revenue from a surcharge that will be levied to other oil and gas drillers who want to purchase water from SPWA. The SPWA will get a major expansion and new pipelines to service residents in the county not currently served–along with a new revenue source in selling more water to drillers. The SPWA gets its water from the Monongahela River. Sounds like a good deal with winners all around–except last month Vantage Energy put itself up for sale (see Marcellus Driller Vantage Energy Puts Itself Up for Sale). So how does spending $30 million square with a company attempting to sell itself?…
Read More “Vantage Energy Cuts $30M Deal to Expand Water Plant in Greene Co.”
Energy Companies | Rex Energy

Rex Energy Reshuffles the Top Management Deck after COO Departs
July 14, 2015July 14, 2015

A reshuffling of senior management has taken place at Rex Energy. The current president and chief operating officer (COO), Pat McKinney, is leaving the company “to pursue an opportunity in the investment banking industry.” Rex’s CEO, Tom Stabley, will assume the role of president and will henceforth become president & CEO. Robert Ovitz, senior vice president for operations at Rex since only last fall, will become the new COO. Ovitz previously worked for Noble Energy for 13 years and was the guy who established Noble’s presence in the Marcellus Shale in PA and WV…
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Accidents | Energy Companies | Industrywide Issues | Jay-Bee Oil & Gas | Pipelines | Tyler County | West Virginia

Pipeline Ruptures & Burns at Jay-Bee Well Pad in Tyler County, WV
July 13, 2015July 13, 2015

There was a rupture of a gas pipeline at a Jay-Bee Oil and Gas drill pad in the Big Run area of Tyler County, WV early Friday morning. There was no explosion, and no one was injured–but there was a fire and the fire could be seen for miles in the dark early morning. The fire from the ruptured pipe (cause still being investigated) burned for an hour before it was extinguished. The wells on the pad are currently shut-in while the WV Dept. of Environmental Protection investigates. This is not the first Jay-Bee accident in the Big Run area…
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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy

ACLU Bullies Threaten Butler County Landowners over Martian Lawsuit
July 13, 2015July 13, 2015

The most anti-American group on the planet that we know of, aside from ISIS/ISIL/Al-Qaeda, is the American Civil Liberties Union (ACLU). So we find it truly rich that the ACLU–always on the lookout to squash anything to do with the American way and freedom and apple pie–has now involved itself in what we loving call “the Martian controversy.” A small group of rabidly anti-drilling (and liberal) parents in the Mars School District in Middlesex Township (Butler County), PA want to prevent the legal, legitimate, and now fully permitted right of Rex Energy to drill a few Marcellus Shale wells three-fourths of a mile away from the Mars School. We’ve long chronicled this battle (see MDN’s list of Mars School stories). Four local residents used two non-profits backed by Big Green money and from the opposite side of Pennsylvania–THE Delaware Riverkeeper and the Philadelphia-based Clean Air Council–to file a lawsuit against the little town of Middlesex to stop any kind of drilling, a move that has so far cost local taxpayers over $35,000 in legal defense fees (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). So a group of 12 Middlesex landowners and a business launched their own lawsuit against the two Big Green groups and the four local residents claiming (rightly) that they are being economically harmed (see Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers). What do the anti-drilling, liberal, wacko parents and Big Green groups do? They go crying like little girls to the ACLU and now the Big Bully ACLU has ridden into town to tell the 12 landowners and local business they have no right to file a lawsuit! In America!!!…
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Energy Companies | Lawrence County | Pennsylvania | Rex Energy | Utica Shale

Rex Energy Drilling 1st Utica Shale Well in Lawrence County, PA
July 13, 2015July 13, 2015

Exciting news from “the little drilling company that could…and does,” as MDN likes to call Rex Energy. Last week Rex released an operational update with the big news that they will drill their very first dry gas Utica Shale well in Lawrence County, PA (near the Ohio border) in the third quarter of 2015. Rex also brought online another two Marcellus Shale wells in Butler County, PA…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter Dodges Another Bullet, Banks Relax Cash Requirement
July 13, 2015July 13, 2015

In June MDN told you that Magnum Hunter Resources (MHR) was being told by its big bank creditors to get $65 million cash in hand by July 10th, or else (see Magnum Hunter’s Bankers Say Get $65M in Cash by July 10, Or Else). Or else what? Guess we’ll never know. Last week MHR announced they had gotten $55.6 million in hand and the bankers said aaaah, good ‘nuf. Whew. MHR dodged another bullet and can keep the doors open for a while longer…
Read More “Magnum Hunter Dodges Another Bullet, Banks Relax Cash Requirement”