Energy Companies

Carrizo Oil & Gas | Energy Companies | Guernsey County | Ohio | Utica Shale

Carrizo Call Reveals Recent Results for Guernsey, OH Utica Well
February 25, 2015February 25, 2015

A few weeks ago Carrizo Oil & Gas announced they would not do any new drilling in the Marcellus/Utica in 2015 and instead pull back and concentrate on other plays–namely the Eagle Ford in Texas (see Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015). In an analyst call yesterday Carrizo officials reiterated that strategy, saying they were still “early” to the play and lack of pipeline infrastructure played a role in their decision to suspend Utica drilling. They also had some interesting things to say about the production coming from a Utica well just brought online in Guernsey County and their future prospects for drilling in the condensate window of the play–whenever they return to the Utica…
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Allegheny County | Chevron | Energy Companies | Pennsylvania

Chevron Consolidates Reduced Marcellus Workforce Under One Roof
February 25, 2015February 25, 2015

In January, Chevron announced it is cutting 23% of its Marcellus Shale workforce in the Pittsburgh area (see Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh). Last July, the company put a long-planned massive new 350,000 square foot office complex project they planned to build in Moon Township on hold (see Chevron Puts Moon Twp, PA Office Building Project on Hold). The new office complex project is still under reconsideration. Meanwhile, since they’ve downsized, Chevron is consolidating the workforce under one roof, renting a new office space in Moon Township…
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Atlas Energy | Energy Companies

Atlas Resources Takes Out “2nd Lien” to Raise $250M in Cash – Why?
February 25, 2015February 25, 2015

Sometimes the world of high finance and elaborate corporate structures–particularly in the oil and gas industry–just boggles our minds. Sometimes it’s hard to wrap your brain around it. This is one of those times. In the past we’ve chronicled the rise and sale of Atlas Energy, a once-major driller in the Marcellus Shale. In 2011 Chevron bought a big chunk of Atlas for $4.3 billion (see India’s RIL Loses Bidding War for Atlas Energy – $4.3 Billion Deal with Chevron Goes Forward). The Cohen family that runs the company is interesting and colorful. They bought into the company in the 1990s and happened to be in the right place at the right time, just prior to the discovery of the Marcellus (see The Unconventional Rise & Sale of Atlas Energy). Then in October of last year, the Cohens did it again. They sold more of what was left–for a truly astonishing $7.7 billion–to Targa Resources Partners (see Atlas Energy/Pipeline Sells Itself (Again) – for $7.7 BILLION!). What’s left now? With respect to the Marcellus, we don’t think there’s much left. But Atlas still does own operating interests in Marcellus wells, so when we saw a press release from the company saying they have just taken a “second lien” on the company to raise $250 million in cash, it piqued our interest…
Read More “Atlas Resources Takes Out “2nd Lien” to Raise $250M in Cash – Why?”
Allegheny County | Energy Companies | Industrywide Issues | Olympus/Huntley & Huntley | Pennsylvania | Statewide PA | Taxation

Wolf’s Severance Tax Threat Costs Small PA Town $315,000
February 24, 2015February 24, 2015

Two weeks ago the hapless newly elected governor of Pennsylvania, Tom Wolf, introduced a new 7.5% severance tax plan to soak the Marcellus Shale industry in his state (see PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax). Wolf wants to target one industry, oil and gas, to give their hard-earned money away to another industry, teachers. He’s trying to pay back all of those good union voters in Philadelphia who elected him. But Wolf’s threat of a tax is already having very tangible consequences. Huntley & Huntley Energy Exploration has pulled out of a deal to lease 90 acres of land owned by Harmar Township (Allegheny County), PA. That just cost Harmar $315,000. Why did Huntley & Huntley pull out? The uncertainty over Wolf’s severance tax. If the tax passes, a great deal of drilling in PA’s Marcellus Shale will be idled–and that’s not idle speculation…
Read More “Wolf’s Severance Tax Threat Costs Small PA Town $315,000”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Cuts 2015 Budget 44%, Will Drill 70 New Marcellus Wells
February 24, 2015February 24, 2015

Last week Cabot Oil & Gas issued its fourth quarter 2014 and full year 2014 update, along with guidance on what they plan to do for 2015. In October Cabot said they would spend upward of $1.6 billion on drilling in 2015 and planned to grow their production a very healthy 20-30% (see Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!). Last week Cabot slashed the budget to $900 million and their new planned growth projection is 10-18%. Cabot also said they’re downsizing their rig fleet–in the Marcellus they’re going from 5 rigs to 3, and in the Eagle Ford (Texas) they’re cutting back from 3 rigs to 1. Revenue for 2014 was down 63% over 2013 due mostly to the low price of natgas along with certain other “impairment” charges. Amidst the bad news of budget cuts and lower revenue, there was really good news: Cabot hit a new production high of 531.8 billion cubic feet in 2014, up 29% from 2013; proved reserves increased 36%–to 7.4 trillion cubic feet equivalent; and they still plan to drill upward of 70 new wells in 2015 in the PA Marcellus (in Susquehanna County)…
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American Energy Partners | Chesapeake Energy | Energy Companies | Harrison County | Lease & Royalty Payments | Ohio | Utica Shale

Harrison County, OH Hauls in $1.6M in 2 Weeks from Utica Leases
February 24, 2015February 24, 2015

Even though the price of oil and natural gas is depressed, there are still lease deals happening–particularly in the Ohio Utica Shale region–that make your eyes pop out. Whoops! Just had to put an eyeball back in. It popped out at the latest lease numbers coming from Harrison County, OH where they’ve taken in $1.6 million over the past couple of weeks…
Read More “Harrison County, OH Hauls in $1.6M in 2 Weeks from Utica Leases”
American Energy Partners | Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation

McClendon Hires Top PR Firm to Respond to “Stolen Data” Charge
February 24, 2015February 24, 2015

Last week we told you about the silly lawsuit filed by Chesapeake Energy against its former co-founder and CEO Aubrey McClendon (see Chesapeake Energy Sues McClendon for Taking His Rolodex with Him). Chesapeake says McClendon took a bunch of data with him when he left and (gasp) used it to aggressively lease property in the Ohio Utica Shale. That is, they’re ticked that Aubrey continues to outclass them in every conceivable way. Did they think he’d just shrivel up and die after they tossed him out the door? Get real! Aubrey isn’t taking it lying down. This is a public relations battle as much as a court battle and in addition to having ace attorneys, Aubrey has hired one of the top PR firms in the country–Edleman–to respond to the Chesapeake lawsuit…
Read More “McClendon Hires Top PR Firm to Respond to “Stolen Data” Charge”
Antero Resources | Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | EV Energy Partners | EXCO Resources | Halcon Resources | Industrywide Issues | Research | Rex Energy | Warren Resources

19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica
February 23, 2015June 23, 2015

David Fessler is energy and infrastructure strategist (i.e. stock analyst/researcher) with The Oxford Club–a publisher based in Baltimore, Maryland that publishes the Oxford Resource Explorer, among other financial publications. Fessler spends his days immersed in the energy industry and in the stocks of companies in that industry. Fessler and The Oxford Club have produced a special report called “The Oil Company Death List” which is a list of 19 publicly-traded oil and gas companies that, according to a formula worked out by Fessler, will “die soon.” That is, they’ll go bankrupt if they don’t sell themselves or otherwise sell off major assets. Why? They’re “swimming in debt” and way over leveraged with “ugly balance sheets.” Fessler’s simple formula is all about a company’s debt ratio. When a company’s debts reach 4 times or higher its earnings (EBITDA), that’s a huge red flag. Below we have the list of 19 on the “death list” along with a copy of Fessler’s full report (describing his methodology). The interesting/troubling aspect is that 8 of the 19 are Marcellus/Utica operators–one of which is #1 for highest debt-to-earnings ratios. Some companies in the list surprised us–others did not. Is your favorite Marcellus/Utica driller in the list?…
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Anti-Drilling/Fossil Fuel | Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Regulation | Wastewater | West Virginia

GreenHunter Keeps Pressure on USCG to Barge Brine on Ohio River
February 23, 2015February 23, 2015

GreenHunter Resources is keeping up the pressure on the U.S. Coast Guard (USCG)–essentially daring them to stop GreenHunter from proceeding with barging brine–or produced water–from shale wells down the Ohio River (see GreenHunter to Coast Guard, We’re Barging While You Fiddle Around). In new comments last week, GreenHunter’s Chief Operating Officer Kirk Trosclair reaffirmed his company is proceeding with its plan to begin barging from a facility in Wheeling, WV. Meanwhile, so-called “environmental” groups are organizing and joining forces with the Wheeling Water Warriors (Warriors, Warriors, Warriors…that’s an echo you hear for our superheros) to oppose GreenHunter from barging a substance that isn’t anywhere near as toxic as the chemicals that currently float down the river on barges every single day. Here’s what Trosclair said last week…
Read More “GreenHunter Keeps Pressure on USCG to Barge Brine on Ohio River”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | West Virginia | Wetzel County

Magnum Hunter 7-Well Pad in WV Online, Yields 80/20 Gas/Liquids
February 23, 2015February 23, 2015

Last week Magnum Hunter Resources announced their recently completed Marcellus Shale well pad in Wetzel County, WV went online to production–all 7 wells on the pad. Combined, the 7 wells are producing an average 35 million cubic feet per day equivalent (MMcfe/d) of natural gas. Actually it works out to be around 17% natural gas liquids, 3% condensate and 80% natural gas/methane flowing from the wells. Here’s the details from MH…
Read More “Magnum Hunter 7-Well Pad in WV Online, Yields 80/20 Gas/Liquids”
Carrizo Oil & Gas | Columbia County | Encana Energy | Energy Companies | EXCO Resources | Lackawanna County | Luzerne County | Pennsylvania | Southwestern Energy | WPX Energy

Lights Out for Marcellus Drilling in Lackawanna/Luzerne Counties
February 23, 2015February 23, 2015

It’s lights out for Marcellus drilling in both Lackawanna and Luzerne counties in northeastern Pennsylvania. Lackawanna and Luzerne are otherwise known and Scranton and Wilkes-Barre, respectively. But it’s not because of the two large cities located in those counties that Marcellus drilling will not be done (there are plenty of rural locations in each). It’s because there’s no gas in the shale layer to be had in those counties–at least not in quantities that are commercially profitable. Over the past five years seven different wells have been drilled in both counties (or very close by in neighboring Columbia County). The seventh and final well, drilled by WPX Energy, has just been plugged and abandoned…
Read More “Lights Out for Marcellus Drilling in Lackawanna/Luzerne Counties”
Energy Companies | Industrywide Issues | M&A | Talisman Energy

Talisman Energy Sale to Repsol Takes 2 Giant Steps Closer
February 23, 2015February 23, 2015

Not that there was really any doubt, but last week the deal for Spanish oil giant Repsol to buy out Canadian shale driller Talisman Energy took a couple of big leaps forward (see Spanish Respol Buys Marcellus E&P Talisman Energy for $8/Share). Talisman has major drilling operations in the Pennsylvania Marcellus Shale. The company was having problems for some time and that invited the vultures, er, corporate raiders to show up (see Carl Icahn’s Claws Go Deeper into Talisman – 2 New Board Members). No doubt under pressure by Ichan’s lieutenants, Talisman had to either sell off key assets, or sell the whole company. They opted to do the later last December. Last week both the shareholders and the Canadian government gave it’s blessing to the sale. Now all that’s left is for the proverbial fat lady to sing…
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Energy Companies | Noble Energy

Noble Energy 2014 in Review, Spending $900M on Marcellus in 2015
February 20, 2015February 20, 2015

Noble Energy issued a pair of announcements yesterday. One was their their fourth quarter 2014 and full year 2014 results, the other was “guidance” or projections for what they plan to do in 2015. Noble is a big company with drilling both onshore and offshore. Of interest to us is their Marcellus program. In 2014, Noble drilled 24 Marcellus wells and they drilled their very first Utica well (in WV). According to Noble’s guidance, they plan to spend roughly $900 million on new Marcellus drilling in 2015…
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Access Midstream Partners | Bradford County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Williams

PA Landowners File RICO Royalty Lawsuit Against Chesapeake/Williams
February 19, 2015February 19, 2015

Along with acquiring Access Midstream (formerly Chesapeake Midstream), Williams has just acquired a brand new lawsuit. Two Bradford County, PA law firms along with a New Jersey law firm on Tuesday filed a RICO (Racketeer Influenced and Corrupt Organizations Act) lawsuit on behalf of 90 landowners in Bradford County against Chesapeake Energy and Williams Partners (because Williams is now the owner of what was Access Midstream) claiming Chessy and Williams/Access conspired to defraud landowners of royalty money by deducting post-production expenses they had no right to deduct…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Susquehanna County

Cabot O&G Loses PA Supreme Court Case to Extend Lease
February 19, 2015February 19, 2015

In October MDN told you about an important lawsuit that went to the Pennsylvania Supreme Court, a case called Harrison v Cabot Oil & Gas (see Important Landowner/Driller Case Heads to PA Supreme Court). In brief, Susquehanna County, PA landowners Wayne and Mary Harrison signed a lease with Cabot Oil & Gas for $100 per acre and 12.5% royalties. Learning that others in the area got better deals and feeling they were not only hoodwinked but pressured into signing, they sued Cabot halfway through the lease to dissolve it. Ultimately that lawsuit was decided in favor of Cabot. But by the time the lawsuit was done and dusted, the original 5-year term had expired without Cabot drilling. The Harrisons claimed since Cabot hadn’t drilled, the lease is now over with. Cabot said the lease went on “pause” when the Harrison’s sued–you can’t very well drill with an active lawsuit. This “lease on pause” case was appealed all the way to the Supreme Court in PA, and on Tuesday they rendered their decision…
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American Energy Partners | Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation

Chesapeake Energy Sues McClendon for Taking His Rolodex with Him
February 19, 2015February 19, 2015

This is rich. Yesterday Chesapeake Energy sued its former co-founder, Aubrey McClendon, claiming he took his rolodex (“contacts list” for our younger readers) with him when he left the building. Chesapeake said the data McClendon took with him had “trade secrets” in it. McClendon, in responding to the frivolous lawsuit, said that the data he took was part of his contractual agreement with Chesapeake. McClendon was and remains Chessy’s biggest partner, with a working interest in almost all of the wells they’ve drilled. Apparently his ongoing relationship with the company he co-founded bothers the Powers That Be (corporate raiders Carl Icahn and Mason Hawkins)…
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