Energy Companies

Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 1Q15: Production Up, Revenue Up, Profits Down
April 24, 2015April 24, 2015

Cabot Oil & Gas released it’s first quarter 2015 results today. Most of the numbers are impressive indeed. Marcellus natural gas production was up 43% over last year. Liquids production was up 132%. And even though they’re not getting as much money for their product, revenue was up year over year–$267.4 million in 1Q15 vs $255.4 million in 1Q14 (up 4.7%). However, even the mighty Cabot couldn’t keep all of the numbers going up. Net income–the money you keep after expenses–was down from $107 million in 1Q14 to $40.3 million in 1Q15–a 62% drop year over year. Low prices for both dry and wet gas are the culprit. Here’s today’s 1Q15 financial and operational update from one of our favorite Marcellus drillers, which includes “guidance” (their best guess) as to what will happen for the balance of 2015…
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Energy Companies | EQT Corp

EQT 1Q15: Production Volume Up 37%, but Price Received Down 33%
April 24, 2015April 24, 2015

EQT, one of the big drillers in the Marcellus (and Utica) Shale region, released a financial and operational update for first quarter 2015. It shows the company’s production increased 37% year over year, but the price they received for natural gas decreased 33% year over year. Consequently, EQT’s net income for 1Q15 dropped 9.8% from what it was in 1Q14–$173.4 million in 1Q15 vs $192.2 million in 1Q14. EQT has a major midstream (pipelines) division. Revenue for the midstream division was 38% higher than a year ago, meaning overall EQT’s net income would have been a lot worse if not for its midstream operations. As other companies have done, EQT has once again lowered its capital budget for 2015–another $150 million. They now plan to spend $2.05B instead of the originally announced $2.5B…
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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Rex Energy

Martian Sighting in Harrisburg – Keep Wells Away from Schools
April 24, 2015April 24, 2015

Where’s HG Wells when you need him? We’ve had another Martian sighting! At yesterday’s PA Dept. of Environmental Protection Oil & Gas Technical Advisory Board (TAB) meeting, Amy Nassif, representing some of the parents from the Mars School district in Butler County, PA, addressed TAB members imploring them to “keep oil and gas well pads away from schools.” Aaah, Ms. Nassif–what about well pads that already exist ON SCHOOL PROPERTY? Like the well pad at the Elk Lake School in Susquehanna County (see Rural NE PA School Nets $1.7M in Royalties from 2 Marcellus Wells). Should they rip out their two wells–wells that haven’t harmed a single student and have brought in millions of dollars for the school?…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Sullivan County

PA Gov. Wolf Talks to Shell About Beaver County Cracker Plant
April 23, 2015April 23, 2015

PA Gov. Tom Wolf is bullish on the possibility of an ethane cracker coming to Beaver County, PA. He thinks a cracker is “inevitable.” In what can only be described as a faux pas for Wolf, he spoke about his love of a cracker yesterday, on Earth Day (oops). Earth Day is all about Democrats professing love of Mother Earth and hatred of fossil fuels. Must be Wolf didn’t get the memo. Wolf says he’s spoken to Shell muckety-mucks to let them know PA still wants a cracker. He said the Shell muckety-mucks say the project is “still on track” although there’s no timetable for a decision–which we take to mean no decision will be made for the foreseeable future…
Read More “PA Gov. Wolf Talks to Shell About Beaver County Cracker Plant”
Crime | Energy Companies | Industrywide Issues | Regulation | Statewide WV | Trans Energy | West Virginia

Trans Energy Clean Water Act “Crime” Results in 2 Yrs Probation
April 23, 2015April 23, 2015

We suppose Trans Energy, a WV-based shale driller, is now considered a hardened, convicted criminal. The company’s crime? Pushing dirt into a few creeks without a permit. It’s a crime for which they are paying dearly. Last October MDN brought you the story of the federal Environmental Protection Agency and WV Dept. of Environmental Protection joint investigation into Trans Energy’s dirt-pushing and the resulting $3.6 million in fines (see Court Adds Another $600K to $3M Fine for Trans Energy in WV Case). Investigators from the EPA’s Criminal Enforcement Program in the Mid-Atlantic States got involved. Bet you didn’t know the EPA has a Criminal Enforcement Program, did you? The kicker: under a plea agreement signed yesterday by Trans Energy’s CEO John Corp, the company (presumably Corp) will need to report to a federal probation office for the next two years. Scene at the probation office waiting room: Corp sitting on a bench in a tailor-made business suit, sitting next to a convicted meth lab operator covered head to toe with tats. “What are you in for?” says the drug peddler. “Violating the Clean Water Act,” says Corp. “Dang, you really are a nasty piece of work,” says the drug peddler…
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American Energy Partners | Energy Companies

McClendon Deepens the AEP Bench with 3 New Hires
April 22, 2015April 22, 2015

Aubrey McClendon, former CEO of Chesapeake Energy, current CEO of American Energy Partners and the media’s favorite bad boy of fracking–knows a thing or two about developing a deep bench. In addition to Aubrey’s focus on natural gas drilling, he’s one of the co-owners of the Oklahoma City Thunder NBA basketball team. So Aubrey knows it’s good to have a lot of talent on the bench and in the game. In that spirit, Aubrey has just made three more hires to, as he says, “broaden and deepen” his management team. Yesterday American Energy Partners announced that it has hired Scott D. Sachs as Senior Geoscience Executive Advisor, James C. Johnson as Senior Marketing and Midstream Executive and Traci D. Cook as Chief Accounting Officer…
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Energy Companies | Hess

Hess Named #1 O&G Company on 100 Best Corporate Citizens List
April 22, 2015April 22, 2015

When MDN editor Jim Willis attends industry conferences, more often than not there is at least one, sometimes more than one, session on CSR, or Corporate Social Responsibility. CSR means oil and gas companies ensure they are in compliance not only with the letter, but the spirit of the laws and regulations under which they operate. It also means going beyond the minimum and being good neighbors and participating in the communities in which they operate. Our industry takes the CSR role seriously. So when we noticed that Hess was named the No. 1 oil and gas company on Corporate Responsibility magazine’s prestigious list of 100 Best Corporate Citizens for 2015, we thought it worth mentioning and giving them a shout-out for a job well done…
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Belmont County | Energy Companies | Guest Post | Gulfport Energy | Industrywide Issues | Litigation | Ohio

Opposing Viewpoint on Gulfport Water Lawsuit Against Barnesville
April 21, 2015April 21, 2015

MDN reader Eric Fenster, who lives in the Piedmont Lake area of Ohio, wrote to take issue with MDN’s “take” on the lawsuit brought by Gulfport Energy against Barnesville for breach of contract in selling them water for use in drilling and fracking (see Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal). Mr. Fenster believes MDN has it mostly wrong and that the Gulfport lawsuit is frivolous and should be dismissed. He outlines his thinking in the following guest post…
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Bluescape Resources Co | Energy Companies | EXCO Resources

Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources
April 20, 2015April 20, 2015

Note: Thanks to a sharp MDN reader for pointing out that EXCO is NOT a wholly own subsidiary of Bluescape. Our mistake! The two companies are, however, tightly working together. We maintain, however, that Bluescape is pulling the strings after purchasing 5.9 million shares of EXCO stock.

We’re not sure how we missed it, but somehow it had escaped our attention that EXCO Resources, with 145,000 net acres in the Marcellus Shale, ~~is a wholly owned subsidiary of Bluescape Resources Company. We’re not sure when that happened~~. Bluescape, judging from their website, is an investment holding company–the money behind other companies like EXCO. The Bluescape website says they own 330,000 net acres in the Marcellus. Since Bluescape does no drilling of its own in the Marcellus (we checked our own Marcellus and Utica Shale Databook), it leads us to conclude EXCO isn’t Bluescape’s only investment/subsidiary in the northeast. Over the past few weeks, EXCO has experienced a shake-up in upper management, with Bluescape pulling the strings. At the end of 2014, EXCO suspended dividend payments for shareholders–never a positive sign (see EXCO Resources Suspends Dividend Payments to Shareholders). Also in December, the company appeared on Debtwire’s “Distressed Watchlist” (see 4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist). In February, EXCO was listed on “The Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). So it should come as no surprise that EXCO has both a new CEO and new COO over the past two weeks…
Read More “Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources”
Energy Companies | Gastar Exploration | Lease & Royalty Payments | Marshall County | West Virginia | Wetzel County

6 Months Later: Gastar Deal to Drill Under Ohio River Not Done
April 20, 2015April 20, 2015

Last October MDN brought you the news that Gastar Exploration had won a lease with West Virginia to drill under a 232-acre tract of the Ohio River at the border of Marshall and Wetzel counties (see Gastar Wins Lease to Drill Under Ohio River in WV). Terms of the lease: $3,500 per acre signing bonus with 20% royalties. At that time, “final aspects of the lease” were being negotiated. In March of this year Statoil signed a deal with WV to drill under 474 acres of the Ohio River (see Statoil Cuts Deal to Drill Under 474 Acres of the Ohio River in WV). Terms of the Statoil lease: $8,732 per acre signing bonus with 20% royalties. The Statoil deal is done and dusted. The Gastar deal? It’s six months later and the lawyers are still squabbling back and forth. The final contract has not yet been signed…
Read More “6 Months Later: Gastar Deal to Drill Under Ohio River Not Done”
American Energy Partners | American Energy Utica | Energy Companies | Harrison County | Ohio

McClendon’s American Energy-Utica Signs OH Water Deal with MWCD
April 20, 2015April 20, 2015

The Muskingum Watershed Conservancy District (MWCD) continues its pro-drilling ways. MWCD was organized in 1933 to reduce the effects of flooding and conserve water for beneficial public uses, oversees 16 dams and reservoirs across 22 counties in Ohio, covering 20% of the state. A huge part of Ohio is under the oversight and control of the MWCD. We’ve previously covered their deals with Antero Resources to lease District property for drilling. We’ve also covered District deals to sell water to Antero and other shale drillers. Last week they signed a new deal, much smaller than others they’ve signed, to sell water to Aubrey McClendon’s American Energy-Utica subsidiary. American Energy will pay $6 per 1,000 gallons (a little over half a penny per gallon). The deal is only for three months–from May through July…
Read More “McClendon’s American Energy-Utica Signs OH Water Deal with MWCD”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Range Loses 2nd Appeal, Must Provide PA Well Site Chemical List
April 20, 2015February 8, 2019

Three families who live near a former drill site and frack wastewater impoundment at the Yeager Marcellus Shale site in Washington County, PA sued Range Resources in May 2012 claiming the air they breathe and the water they drink had been contaminated by Range’s operation at the site (see EPA Investigating Range Drill Site in Western PA). Litigation ensued, and years passed. In 2013, a Washington County court ordered Range (not its contractors, but Range itself) to disclose a list of all chemicals used at the site–right down to the type of motor oil used in vehicles coming and going at the site (see PA Judge Forces Range, Contractors to Provide Chemical List). It will be an almost impossible task to construct such a list at this point, especially in light of the fact they’re in the process of closing the site. So Range appealed. Last June they lost that appeal (see Court Says Range Resources Must Disclose Chemicals in SW PA). Range appealed again, and last week they lost that second appeal…
Read More “Range Loses 2nd Appeal, Must Provide PA Well Site Chemical List”
Energy Companies | EQT Corp | Industrywide Issues | Litigation | Pipelines | West Virginia | Wetzel County

Why Some WV Landowners Resist MVP Pipeline: Threats & Low $$
April 20, 2015April 20, 2015

Two weeks ago MDN told you that EQT, NextEra US Gas Assets and their Mountain Valley Pipeline (MVP) project have sued 103 West Virginia landowners to force them to allow access to their property so they can survey it for potential paths for the MVP (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). MVP is a 330-mile pipeline that will stretch from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. But landowners in, of all places, WV seem to be turning against the pipeline. There are so many projects underway in WV and other Marcellus/Utica areas, it almost seems as if there is pipeline fatigue setting in. Make no mistake, pipelines like the MVP are desperately needed to move large volumes of Marcellus/Utica gas to markets outside of the immediate region. Without the pipelines, the drilling will stop–which is what anti-drillers want to happen. But sometimes otherwise supportive landowners are not so supportive of a given pipeline project. Let’s get an inside perspective to better understand some of the reasons why…
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Energy Companies | Energy Services | Keystone Clearwater Solutions | Rex Energy

Rex Energy: 1Q15 Production Up 60%; Still Selling Keystone Clearwater
April 20, 2015April 20, 2015

Rex Energy issued a brief announcement today to say a) first quarter 2015 production was up 60% over first quarter of last year, and b) the company is still on track to sell its 60% ownership interest in Keystone Clearwater Solutions, the company’s water service subsidiary (announced in February, see Rex Energy Looks to Sell 28,300 Marcellus Acres in Bid to Raise $). Here’s the details…
Read More “Rex Energy: 1Q15 Production Up 60%; Still Selling Keystone Clearwater”
Education | Energy Companies | Exxon Mobil | Industrywide Issues | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA

ExxonMobil Donates $47M to Higher Ed, Including Marcellus Region
April 20, 2015April 20, 2015

ExxonMobil runs an incredibly generous program called the Educational Matching Gift Program under which they have just donated $47 million to ~900 colleges and universities across the United States. Here’s how it works: for every $1 ExxonMobil employees, retirees, directors and surviving spouses contribute to the Matching Gift Program, ExxonMobil matches it with $3. In Pennsylvania, the total pot donated to higher education was $3.8 million. In Ohio, it was $909,000. Virginia colleges are getting $1.3 million. New York State colleges and universities are getting a whopping $3.4 million–after New York State has screwed ExxonMobil royally (the company has lost millions of dollars in lease expirations when it couldn’t drill shale wells in the state because of Andrew Cuomo’s fracking ban). And yet, ExxonMobil gave money to the Empire State anyway, to some of the very schools who provide shelter and sponsor anti-drilling zealots. It shows the caliber of the people who run the company. One more: New Jersey, big users of oil and gas, but haters of pipelines and shale drilling, got $1.1 million…
Read More “ExxonMobil Donates $47M to Higher Ed, Including Marcellus Region”
Anti-Drilling/Fossil Fuel | Crime | Energy Companies | HG Energy | Industrywide Issues | Statewide WV | West Virginia

Domestic Eco-Terrorism: Worker Shot at Rural WV Oil Well Site
April 17, 2015November 3, 2015

We have what appears to be an act of eco-terrorism, (possibly attempted murder) in southwestern West Virginia, by what appears to be an anti-driller who has had a snap with reality. Mark Miller, a 39 year-old married father of two who works for oil and gas company HG Energy, was visiting a conventional oil well site in Lincoln County on Monday. Miller said in an interview he was at the well, which has a history of leaks, to take pictures of an existing leak. The well is located on state-owned land, in a rural wildlife management area. Miller, in an unmarked pickup truck, started to drive away when a “tall, lanky man dressed in camouflage, with black stuff rubbed all over his face” approached the truck. Miller stopped to see if he could help, assuming the man’s vehicle was broken down somewhere nearby. The man approached the passenger side window, didn’t talk but held up a recorder which played something about not drilling, and he stuck a gun through the window, pointing it at Miller’s head. Miller tried to knock the gun away and the man pulled the trigger, shooting Miller in the hand, shattering bones in his left hand…
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