Energy Companies

Energy Companies | EQT Corp | Ohio | Statewide OH | Utica Shale

EQT Shutters OH Utica Drilling, Still Likes PA/WV Utica Drilling
February 9, 2015February 9, 2015

On an earnings call with analysts last Thursday, EQT’s top management said that they are “writing off” their Ohio Utica Shale acreage, taking a $162 million hit. The acreage performed “significantly below expectations.” However, that doesn’t mean EQT is giving up on the Utica–just their Utica acreage in Ohio. EQT owns a LOT of acreage in southwest Pennsylvania and West Virginia (over 400,000 acres) with dry gas Utica under much of it–and they’re eyeing the Utica in those locations very closely. EQT is in the midst of drilling two dry gas Utica test wells–one in Greene County, PA, the other in Wetzel County, WV…
Read More “EQT Shutters OH Utica Drilling, Still Likes PA/WV Utica Drilling”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

GreenHunter/Coast Guard War of Words — MDN Explains It
February 6, 2015February 6, 2015

MDN now believes we have the full story, and a proper understanding, for the current war of words between GreenHunter and the U.S. Coast Guard over the issue of barging produced water, sometimes referred to as brine, on the Ohio River and other inland waterways. On Wednesday MDN brought the news that GreenHunter claimed the Coast Guard has given the all clear to begin barge shipments of brine (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). Yesterday we reported a response from the Coast Guard saying no, they haven’t decided and haven’t given clearance (see Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter). Yesterday GreenHunter, a publicly traded company, filed a statement with the Securities and Exchange Commission (SEC) challenging the Coast Guard’s statement. It all comes down to semantics. MDN has spoken with a barge operator, has read the GreenHunter SEC statement (below), and we now think we know what is happening…
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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County

More on that Range Rig Fire in Washington County, PA
February 6, 2015February 6, 2015

Range Resources dodged a bullet with the fire at a well pad in North Strabane (Washington County, PA) on Wednesday. We now know that a hydraulic line leaked oil and that’s what started the fire. Personnel on site tried to extinguish it but enough oil spread on the rubber well pad liner that the liner itself caught fire–essentially like a huge tire burning. Which is what caused the billowing black smoke in the area. The fire spread and consumed the rig, destroying it, and a couple of trailers parked at the site. Range was in the beginning stages of drilling the well. The bullet they dodged is that no one was injured. Equipment can be replaced–people can’t…
Read More “More on that Range Rig Fire in Washington County, PA”
Energy Companies | EQT Corp

EQT 2014: Drilled 345 Wells, Production Up 26%, Net Income Up 74%
February 6, 2015February 6, 2015

Lots of EQT news to share today. Yesterday the company pushed out several updates, including a recap of their 2014 operational and financial results–for both the production/drilling side of the company and the midstream/pipeline side. Production sales volume was up 26% for the year over 2013; midstream gathered volume was up 27%; net income was up 74% from a year ago; and they still have an available borrowing credit line of $1.5 billion in the bank. EQT drilled 196 Marcellus wells, 103 Huron wells and 41 Upper Devonian wells in 2014…
Read More “EQT 2014: Drilled 345 Wells, Production Up 26%, Net Income Up 74%”
Energy Companies | EQT Corp

EQT Slashes 2015 Capex Budget 24%, Reduces Drilling Program 45%
February 6, 2015February 6, 2015

Perhaps the biggest news coming from EQT yesterday is the news that they’ve once reduced their capital expenditure (capex) budget for 2015. In December, the company said they would spend $2.5 billion on capex in 2015–down from $2.7 billion spent in 2014—and drill 244 new wells this year (see EQT’s 2015 Plans: 181 Marcellus Wells, 58 UD Wells, 5 Utica Wells). Yesterday EQT whacked the budget again, given the low price of oil and gas. They will now spend $2.05 billion on capex (down 24% from last year) and instead drill 191 wells, as opposed to the 345 wells they drilled in 2014 (down 45%)…
Read More “EQT Slashes 2015 Capex Budget 24%, Reduces Drilling Program 45%”
Energy Companies | EQT Corp | Industrywide Issues | Reserves (Proved and Unproved)

EQT Proved Reserves Up 29% in 2014, EURs Up 10%
February 6, 2015February 6, 2015

Among the mountain of news pushed out yesterday by EQT is a rundown on the company’s proved reserves, which rose 29% in 2014 to a whopping 10.7 trillion cubic feet equivalent (Tcfe). In their announcement about reserves, EQT mentions that estimated ultimate recoveries (EUR) per well are even higher than they hoped for: EUR of proved Marcellus wells drilled in 2014 averaged 7.9 billion cubic feet equivalent (Bcfe) as opposed to Marcellus wells drilled in 2013, which were estimated at an average of 7.2 Bcfe (up 10%) per well. EUR means the total amount of gas a well is expected to pump over its lifetime. Here’s a rundown on EQT’s reserve numbers, including 3P numbers (proved, probable and possible)…
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Energy Companies | Warren Resources

New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015
February 6, 2015February 6, 2015

So far as we can tell, Warren Resources, a small driller headquartered in New York City, hasn’t drilled a thing in the Marcellus or Utica Shale (for background, see CEO of Warren Resources Quits, Replaced by Citrus Energy CEO). According to Warren’s recently released 2015 capex budget and guidance announcement, that will change in 2015. Warren plans to drill two Marcellus Shale wells at a cost of $13 million. In fact, one well is already drilled and will be completed in March…
Read More “New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015”
Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County

Fire at Range Resources Well Pad in Washington County, PA
February 5, 2015February 5, 2015

Photo Credit: NewsChopper 2/KDKA

A “large fire” broke out at a Range Resources well pad in Washington County, PA last night. Fortunately no one was injured. The fire was caused by “equipment failure” according to Range. The fire did not at any time involve the well itself. It was a fire in the machinery on the well pad. The details as we know them…
Read More “Fire at Range Resources Well Pad in Washington County, PA”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter
February 5, 2015February 5, 2015

Was GreenHunter fibbing when they claimed the U.S. Coast Guard has given them permission to barge produced water down the Ohio River? MDN brought you the news yesterday that parent company MagnumHunter CEO Gary Evans and GreenHunter COO Kirk Trosclair said they have received approval from the U.S. Coast Guard to ship produced water via barge down the Ohio River (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). You can listen to them say it themselves on this analyst phone call. However, according to an article in today’s Pittsburgh Tribune-Review, the Coast Guard is saying that’s not true–they have NOT yet given a final go-ahead to GreenHunter…
Read More “Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Regulation | Wastewater | West Virginia

GreenHunter Faces Challenge to Get Wheeling Barge Facility OK’d
February 5, 2015February 5, 2015

Yesterday MDN shared the big news that GreenHunter Resources has now received permission from the U.S. Coast Guard to haul produced water via barge down the Ohio River (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). Today that assertion is in question (see our related story on the Coast Guard’s response). Aside from the question of whether the Coast Guard did or did not grant permission for barging of produced water, GreenHunter has another problem–getting permission to load the water onto barges in the first place at their facility in Wheeling, WV…
Read More “GreenHunter Faces Challenge to Get Wheeling Barge Facility OK’d”
Energy Companies | Industrywide Issues | Regulation | Southwestern Energy | Statewide WV | West Virginia

WV Gov Tomblin Signs “We Love You Southwestern” Bill into Law
February 5, 2015February 5, 2015

Last week MDN told you about the hurry-up-and-pass-it Senate Bill (SB) 280 in the West Virginia legislature. Southwestern Energy has just paid over $5 billion to acquire a bunch of land and drilling operations from Chesapeake Energy, most of it in WV (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). A new drilling law passed a few years ago stipulates if leases/operations change hands, the new owner must apply for permits to drill all over again, even if the previous owner had already been awarded those permits. The law threatened to shut down a number of drilling operations for new owner Southwestern. So the legislature passed a law “fixing” that problem–in record time. They then hustled it over to Gov. Earl Ray Tomblin’s desk where, as we predicted, he was waiting with bells on to sign it…
Read More “WV Gov Tomblin Signs “We Love You Southwestern” Bill into Law”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Regulation | Ritchie County | Wastewater | West Virginia

US Coast Guard Approves Brine Shipping via Barge on Ohio River
February 4, 2015February 4, 2015

Some big news coming from GreenHunter Resources, the wastewater disposal arm of MagnumHunter Resources. As MDN has chronicled for the past several years, MagnumHunter has been trying to secure a permit from the U.S. Coast Guard to transport frack wastewater via barges down the Ohio River. The Coast Guard floated a preliminary plan to allow it all the way back in November 2013 (see More on Coast Guard Plan to Allow Barging of Frack Wastewater). However, until now, they have withheld permission due to meddling by The White House and other federal agencies. According to a conference call last week, MagnumHunter/GreenHunter officials said the Coast Guard “quietly” granted permission in December to allow them to begin barge shipments down the Ohio River. The permission apparently applies only to brine, or “produced water” and not flowback for frack wastewater…
Read More “US Coast Guard Approves Brine Shipping via Barge on Ohio River”
CONSOL Energy | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

CONSOL Proved Reserves Jump 19%, Completed 53 Wells in 2014
February 4, 2015February 4, 2015

Yesterday CONSOL Energy, the coal company that’s rapidly converting into a gas drilling company, issued an update to say that their proved gas reserves jumped 19% in 2014 over the same estimates in 2013. CONSOL says they now can reasonably expect to extract 6.8 trillion cubic feet of natural gas, of which 89% is in the Marcellus Shale. CONSOL produced 236 billion cubic feet equivalent of natural gas in 2014. They drilled and completed 53 new wells in 2014…
Read More “CONSOL Proved Reserves Jump 19%, Completed 53 Wells in 2014”
Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County

PennFuture Does Happy Dance for Stopping Range Wells in SWPA
February 4, 2015February 4, 2015

The anti-drilling organization PennFuture–once the employer of newly nominated Secretary of the PA Dept. of Environmental Protection, John Quigley, and the organization whose president was, until recently, Cindy Dunn, now nominated as Secretary of the PA Dept. of Conservation and Natural Resources–is once again celebrating that shale drilling won’t happen. PennFuture has just pushed out a press release to claim credit for stopping Range Resources from drilling at a site in Washington County because the well pad would be a mile away from a school. They’re such heroes, such champs of the environment. What a positive organization serving the great good in PA (not!)…
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Energy Companies | EQT Corp | Industrywide Issues | Pipelines | Statewide VA | Virginia

WV to VA Mountain Valley Pipeline Changing Routes?
February 4, 2015February 4, 2015

Last October the Mountain Valley Pipeline, a 330-mile project that will run from Wetzel County, WV to Pittsylvania County, VA, completed a successful open season to sign up potential customers (see EQT’s WV to VA Pipeline Open Season a Success, FERC Filing in Oct). However, the map we included in the October article is changing. The current path will take it through Giles, Montgomery, Roanoke and Franklin counties before ending at the Transco pipeline in Pittsylvania County. Word is out that the pipeline has been looking in Craig County, VA, which borders Giles, as an alternative path…
Read More “WV to VA Mountain Valley Pipeline Changing Routes?”
Energy Companies | Pennsylvania | Southwestern Energy | Statewide PA | Susquehanna County | WPX Energy

WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern
February 3, 2015February 3, 2015

WPX Energy announced yesterday they have completed the sale and transfer of some 46,700 acres of leases and 63 operational Marcellus Shale wells in northeastern Pennsylvania to Southwestern Energy. MDN first told you about the $300 million deal in early December (for details and a map, see: First Shoe Drops: WPX Sells 1/2 Marcellus Assets to Southwestern). As we said at the time, that was the first shoe. We’re still waiting for the other shoe. WPX owns acreage and/or wells in Centre, Clearfield and Westmoreland counties, in southwestern PA. According to WPX spokesperson Susan Oliver-Stough, the company is actively shopping those assets too. When sold, WPX’s presence in northeast shale drilling will be done…
Read More “WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern”