Cheniere Deal Means Some Marcellus Gas Will Go to Portugal
At least one Marcellus Shale producer, Range Resources, will send Marcellus gas all the way to the Gulf Coast and Cheniere Energy’s LNG export facility in Sabine Pass near Corpus Christi, TX (see Range Announces Multiple Agreements to Sell Natgas & Ethane). It’s quite probable other producers will also ship Marcellus and Utica gas to the Cheniere facility for export as well (see More Marcellus Gas Going to Cheniere LNG Export Facility in TX?). So who will be buying at least some of that Marcellus gas? Yesterday, Cheniere announced a 20-year deal to sell LNG to Portuguese utility company EDP…
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Debtwire is an interesting service. They keep an eye on publicly traded companies to give subscribers to their service a heads-up on which companies are potentially carrying too much debt–companies that may, due to changing economic circumstances, have a hard time paying back that debt. Think of Debtwire as an early warning system to let you know BEFORE Moodys or Fitch Ratings downgrades a company’s credit rating. Later this month Debtwire will issue a new Distressed Watchlist with 176 companies on it. Some 55 new companies will be added to the list from the energy industry alone. With the addition of the 55 new companies, the Distressed Watchlist will have 70 (of 176) companies from the energy industry–making 40% of the list top heavy with energy companies. We have what we believe is an MDN exclusive–Debtwire has sent us the top 20 energy-related companies on the list. Of the top 20, four of them have operations in the Marcellus/Utica region…
Yesterday Range Resources released an announcement with two big pieces of news. The first (and lesser) news is this: Range is trimming its 2015 exploration and production budget by 18% compared to what they spent this year. The 2015 capital expenditure budget is now set at $1.3 billion. However, the company says production will continue to increase, even with less spending on drilling. The second and more important news: Range has drilled a Utica Shale well that has dethroned Magnum Hunter’s Utica well (see 
On Saturday, Triad Hunter, wholly-owned drilling subsidiary of Magnum Hunter Resources, lost control of a Utica Shale well in Monroe County, OH. The well had been drilled and temporarily plugged as the company planned to drill three more wells at the pad. However, “the well began to flow uncontrollably while recommencing production operations” according to a statement released by Magnum Hunter. Well pad personnel along with 28 homes located within a mile and a half were evacuated. Wild Well Control of Houston has been contacted and (presumably) now on site to contain the well. No injuries have been reported…
PDC Energy, with 67,000 acres of leases in Ohio’s Utica Shale, is not among the largest Utica drillers. But they’re by no means insignificant either. The company released their 2015 capital expenditure (capex) budget and production guidance yesterday. PDC says they will idle their single drilling rig in the Ohio Utica in 2015 and spend just $38 million in the Utica next year (compared to $190 million in 2014) to finish up several wells already begun. PDC says the price of natgas is just too darned low right now and that they will be back when the price goes up. (Our thought: PDC will have a long wait!) PDC is instead spending their money in the Niobrara Shale in Colorado–although the company plans to spend 14% less next year than they did this year…