Energy Companies

Chevron | Crime | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

2 Men Indicted by Feds for Vandalizing Chevron Wells in SWPA
March 12, 2015March 12, 2015

A Green County man–Heath A. Rankin, 33, of Carmichaels, PA–was indicted earlier this week by a federal grand jury on a felony charge of damaging a shale well (or wells) on the Burchianti Pad in Greene County in March 2014. The pad is owned by Chevron, which is, according to one news source, planning to seek restitution for damages exceeding $5,000 allegedly caused by Mr. Rankin. Another man, Brian Harbarger, 34, of Cumberland, PA–was indicted for the same thing in December 2014. It’s too early to jump to any conclusions. Are they environmentalists that tipped over the line? Are they former/disgruntled employees? Drunk and out for a joy ride? We simply don’t know. Here’s what we do know…
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Chesapeake Energy | Energy Companies | Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Ohio | Tuscarawas County | Utica Shale

Chesapeake Tries Waterless Fracking at OH Utica Shale Well
March 12, 2015March 12, 2015

Something we consider pretty big news: Chesapeake Energy is running an experiment with waterless fracking. They’ve contracted with Canadian waterless fracking company GASFRAC to attempt what is the second (that we’re aware of) waterless frack job on a Utica Shale well–in Tuscarawas County, OH. The first waterless frack job done by GASFRAC was for EV Energy Partners on a Utica well also in Tuscarawas County (see Details on GASFRAC’s Waterless Frack Test in OH Utica). We consider it a good sign that Chessy thinks its worth a few million bucks to try it out for themselves. Chessy stresses this is still very preliminary…
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Energy Companies | Energy Services | EQT Corp | Industrywide Issues | Pipelines | WGL Holdings

Mountain Valley Pipeline Picks Up 2 New Investors/Partners
March 12, 2015March 12, 2015

Yesterday we told you that some landowners in West Virginia are not happy with what they call threatening letters coming from the Mountain Valley Pipeline (see WV Landowners Say They’re Bullied by Mountain Valley Pipeline). MVP is a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. It’s a joint venture between EQT and NextEra US Gas Assets. At least it was a jv between the two until yesterday when MVP announced two more partners/investors: WGL Midstream and Vega Midstream. Who’s on top? EQT owns 55% (and manages) the jv, NextEra owns 35%, WGL will own 7% and Vega 3%. Here’s the announcement from yesterday…
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Chesapeake Energy | Columbiana County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio

Columbiana Landowners Win Right to Renegotiate Some Lease Terms
March 11, 2015March 11, 2015

In 2008, before the word “Utica Shale” was on people’s lips and in their consciousness, landmen from Patriot Energy Partners “smiled and dialed” calling up landowners in Columbiana County, offering them a whopping $10 (yes 10 bucks) an acre to sign gas and oil exploration leases. Patriot mailed them the contracts, the landowners signed and sent them back, and then got pennies on the dollar for what those leases were actually worth. Patriot then flipped the leases, selling the deep exploration rights to Chesapeake Energy–for $1,100 an acre. Patriot claimed the practice (of hoodwinking landowners and flipping leases) is legal. The landowners wised up and in 2011, 25 landowner families sued to have their leases dissolved. Four years later the case, after going to arbitration, is resolved…
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Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

Range Re-Opens 2 of 3 Water Impoundments in Washington County, PA
March 11, 2015March 11, 2015

Last September Range Resources was fined $4.15 million for a series of violations at eight water impoundments they operate in southwestern PA (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). As part of the deal worked out with the PA Dept. of Environmental Protection (DEP) under then-Sec. Chris Abruzzo, Range agreed to shut down five of the eight impoundments. Actually, all eight of the impoundments ceased operation either during or prior to last September. Two of the remaining three impoundments–the “Carter” and “Carol Baker” impoundments–are now back up and running. The Carter impoundment is handling only fresh water these days, while the Carol Baker impoundment has been upgraded and once again handles wastewater. The remaining “Jon Day” impoundment is being upgraded to begin handling wastewater again, when the weather breaks…
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Energy Companies | EQT Corp | Industrywide Issues | Pipelines | Regulation | West Virginia | Wetzel County

WV Landowners Say They’re Bullied by Mountain Valley Pipeline
March 11, 2015March 11, 2015

Last June EQT and NextEra US Gas Assets formed a joint venture to build a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA to deliver abundant, cheap Marcellus and Utica Shale gas to markets throughout the southeast (see EQT Announces New Marcellus/Utica Pipeline to Southeastern US). The new pipeline was dubbed the Mountain Valley Pipeline (MVP) project. Since that time, MVP has filed paperwork with the Federal Energy Regulatory Commission (FERC), which has jurisdiction on whether or not to build it because the pipeline crosses state lines (see EQT’s WV to VA Pipeline Open Season a Success, FERC Filing in Oct). In February, rumors began to bubble that the pipeline is changing its route (see WV to VA Mountain Valley Pipeline Changing Routes?). There has been some resistance, as there always is, on the part of some landowners who refuse to let surveyors on their property. So MVP sent letters to landowners threatening to sue them if they don’t allow the surveyors access. How can they sue? Using the power of eminent domain–but FERC hasn’t yet approved the project which would trigger the right to use eminent domain…
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | Statewide WV | West Virginia

EQT Sells WV Pipeline Gathering System to Itself for $1B
March 11, 2015March 11, 2015

We’re always somewhat amused by these stories. Sometimes a company will spin off a division into its own company–a subsidiary–and later transfer or “sell” certain assets to the subsidiary. On paper the subsidiary is its own company with its own set of investors, its own board, and its own management. But the primary investor with controlling interest remains the mother company. For all practical purposes, the subsidiary IS the same company as the mother company. Midstream companies tend to do this with some regularity. Back in 2012 we noted that Kinder Morgan did it (see Kinder Morgan Sells Tennessee Pipeline to Itself). This week it’s EQT–selling its Northern West Virginia Marcellus Gathering System, along with a “preferred interest” in another EQT subsidiary, for $1.05 billion to the company’s pipeline subsidiary, EQT Midstream Partners…
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American Energy Partners | EQT Corp | Equinor/Statoil | Gastar Exploration | HG Energy | Stone Energy | Triad Hunter | West Virginia | Wetzel County

Who’s Still Leasing Land and Where in WV?
March 10, 2015March 10, 2015

Who’s leasing land for drilling–and where? Perhaps the bigger question is, are drillers still leasing land?! The answer to that would be a resounding “yes, they are still leasing.” We don’t have a comprehensive overview of where people are leasing, but we spotted a list of leases filed with the clerk in Wetzel County, WV and found it interesting. Here’s who leased, how much acreage, and which energy company they signed with (sorry, no lease terms with signing bonuses and royalties, just acreage & driller)…
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Cunningham Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Tyler County | West Virginia

WV “Landowner” Wins $4.8M in Lawsuit for Failure to Drill
March 9, 2015March 9, 2015

By Andy Leahy

On March 3, a federal judge awarded a Tyler County, WV mineral owner $4.8 million in present and future royalties (plus interest) as damages in a dispute involving the operator’s failure to follow through on some unusually generous lease terms. The operator, Cunningham Energy LLC of Charleston, WV, had promised to horizontally drill eight wells to and through the Marcellus Shale formation within three years, but was unable to do so–largely because the leaseholds were far too small to develop as stand-alone units, and the surrounding lands turned out to be already under lease to other drillers…
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Energy Companies | Pennsylvania | Seneca Resources | Tioga County (PA)

Another Impressive Utica Well Pops Up…in Pennsylvania!
March 6, 2015March 6, 2015

Tioga County, PA is getting a reputation. No, not THAT kind of reputation silly! Tioga County, PA is getting a reputation for impressive Utica Shale wells. Last September MDN told you that Shell had drilled a pair of Utica wells in Tioga County (see Shell Drills 2 Successful Utica Wells in NEPA Marcellusland). Shell’s “Gee” Utica well produced a respectable 11.2 million cubic feet of natural gas per day (Mmcf/d). However, their “Neal” Utica well had an initial production rate of 26.5 Mmcf/d–a top-tier well. The current reigning champ for Utica wells is Range Resources’ Claysville Sportsman’s Club No. 1 well in Washington County, PA which initially produced a mind-blowing 59 Mmcf/d (see Range Resources Drills Highest-Ever Initial Producing Utica Well). Back to Tioga County. Yesterday Seneca Resources, a division of National Fuel Gas, reported drilling a Utica well in Tioga with an initial production rate of 22.7 Mmcf/d. VERY respectable–placing it in the top tier of Utica wells. Oh! And the well is located on PA state-owned land. Isn’t this news delicious–coming after Gov. Tom Wolf has signed an executive order preventing any new leasing of state-owned land…
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Eclipse Resources | Energy Companies | Ohio | Statewide OH

Eclipse Resources has “Transformative” 2014, Cutting Back in 2015
March 6, 2015March 6, 2015

Eclipse Resources released their full year and fourth quarter 2014 update on Wednesday. Eclipse is a small but rapidly growing driller headquartered in State College, PA but doing most of its drilling in eastern Ohio. The company reports last year they drilled 57 gross (41 net) operated wells, completed 36 gross (27 net) operated wells and placed 28 gross (22 net) operated wells into sales. The vast majority of wells they’ve drilled are condensate producers. Last year was, as CEO Ben Hulburt said, a transformative year for the company. They went from producing an average 4.5 million cubic feet equivalent per day (Mmcfe/d) in 2013 to producing 73.5 Mmcfe/d in 2014. The company spent $809 million last year–but this year they’re whacking that, perhaps in half. In December they planned to spend $640 million in 2015, down 38% from last year. On Wednesday they didn’t put a number to it, but Eclipse said they were lowering it even more. Ouch. Here’s the low down on what happened in 2014, and what Eclipse has planned for 2015…
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Eclipse Resources | Energy Companies

Eclipse Resources March Analyst Phone Call + Slides
March 6, 2015March 6, 2015

It doesn’t happen often (with other companies), but yesterday on an analyst/investor phone call, Eclipse Resources top management, including CEO Ben Hulburt, EVP/COO Tom Liberatore and EVP/CFO Matt DeNezza conducted a well-organized dog and pony show (and we say that affectionately) by talking through the company’s latest PowerPoint presentation. Slide by slide they give us the rundown. So we thought we would bring you a transcript of their explanations, along with a copy of the slide deck so you can look at the slides and read through their comments. Eclipse, drilling in the Marcellus/Utica of eastern Ohio, is a smart operator and a company to keep an eye on. It was founded by several top people who left Rex Energy, another small company we like…
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Antero Resources | Energy Companies

Antero Says Super Size Me – Floats 13.1M Shares of New Stock
March 6, 2015March 6, 2015

Antero Resources, one of the largest drillers in the Marcellus/Utica, wants cash and they want it bad. Two days ago we told you that Antero is in the market floating IOUs (or “notes”) looking to raise a huge $1.25 billion (see Antero Shops for $1.25B Cash from IOUs, Wants to Pay Down Old Debt). Just two days later the company put out a pair of press releases announcing a new stock offering too. At first they issued a press release saying they will float 11.5 million shares of new stock. A few hours later they issued another press release saying they are “upsizing” the offering to 13.1 million shares. Apparently McDonald’s meals aren’t the only thing that can get super sized (ba dop bop). Antero hopes to raise $485 million with this latest round. If everything happens as desired, they’ll haul in $1.25 billion from debt financing, and $485 million from equity financing, for a total of $1,735,000,000…
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Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Hilcorp Energy | Jefferson County (OH) | Mercer County | Ohio | Pennsylvania

More Permits Issued for Drilling in (Yes) Northern Utica in OH/PA
March 5, 2015March 5, 2015

More evidence that drilling in the northern Ohio and Pennsylvania Utica is most definitely NOT dead. Both Chesapeake Energy and Hillcorp recently received permits to drill in the northern Utica on both sides of the border…
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American Energy Partners | Energy Companies | Ohio | Statewide OH

McClendon Looking to Sell 29K Utica Shale Acres in Ohio
March 4, 2015March 4, 2015

Hats off to Columbus Business First and intrepid reporter Tom Knox for unearthing what we consider to be some pretty big news: Aubrey McClendon and his American Energy Partners are shopping 29,000 acres of Utica Shale leases in Ohio. At last count, McClendon has raised over $10 billion, much of it used to purchase land deals in the Utica and Marcellus (see Aubrey McClendon Raises Huge $8.7B for Shale Drilling…So Far and Aubrey Goes Shopping Again, Wants Another $2 Billion for Drilling). He’s amassed around 250,000 acres in the Ohio Utica Shale. Now he’s beginning to sell some of it. Where? We have the answer…
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Anadarko | Energy Companies

Anadarko Latest Marcellus Driller to Cut 2015 Budget – Down 33%
March 4, 2015March 4, 2015

Anadarko Petroleum has been an active driller in the Pennsylvania Marcellus Shale over the past couple of years. They’re also a big company with operations in other shale plays and in offshore drilling as well. Yesterday the company announced they are trimming back their 2015 capital budget for drilling by about 1/3–to $5.4 to $5.8 billion. Anadarko is just one of a parade of companies doing the same thing (see Dramatic Budget Cutbacks in Marcellus Budgets for 2015). We have no specific comments or numbers about how Anadarko’s cuts will impact the Marcellus, but Anadarko did say they are reducing onshore rig activity by 40% and deferring 125 onshore well completions. Marcellus is part of onshore, so you do the math. Here’s what we do know about Anadarko’s pull back in 2015…
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