Energy Companies

Chesapeake Energy | Energy Companies | Southwestern Energy

Fitch Ratings Says Chesapeake/Southwestern Megadeal a “Win/Win”
October 20, 2014October 20, 2014

There are three ratings agencies (the “big three”) that rate companies and governments on their financial health, including the ability to borrow money and pay it back. The big three are Standard & Poor’s, Moody’s and Fitch Ratings. Fitch, in a move we have not seen before, issued a press release on Friday commenting on last Thursday’s really big news that Chesapeake is selling 413,000 acres and 435 drilled wells–all of it in the Marcellus/Utica–to Southwestern Energy (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). Fitch jumped in with their own analysis of the deal and has pronounced it a “win/win”…
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Antero Resources | Energy Companies

Antero Resources’ Line of Credit Upped $1B to $4B
October 20, 2014October 20, 2014

One of the largest Marcellus/Utica drillers is Antero Resources. Last week we reported on Antero’s third quarter update in which they tout that by using shorter stage lengths (SSLs) when fracking wells has resulted in better producing wells (see Antero Resources 3Q14: Shorter Stage Lengths Yield 20-30% More Gas). Looks like Antero’s bankers liked that news too. They’ve just extended Antero’s credit line an extra $1 BILLION!…
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BG Group | Energy Companies | Equinor/Statoil

BG Poaches Statoil CEO Helge Lund with Big Bucks
October 20, 2014October 20, 2014

Statoil is a Norwegian oil and gas company that has a number of joint venture deals–along with their own drilling program–in the Marcellus and Utica Shale (see MDN’s list of Statoil stories here). So it was with interest that we noticed a changing of the guard at the top. Statoil CEO Helge Lund was lured away by BG Group. What lured him away? Big money. BG gave Lund a £12m “golden hello” (that’s a roughly $19.4 million signing bonus) and the possibility of annual earnings of £13.5m (or $21.8 million, per year!) if he hits all his targets. BG wanted Lunde bad. We searched and found one reference on MDN to BG–they spent $950 million in 2010 to lock up 654,000 acres of leases here in the U.S., including 186,000 acres in the Marcellus, although they have no active drilling program of their own in the northeast (see Recent Marcellus Shale Joint Venture Deals). What does Lunde’s change from Statoil to BG mean for northeast shale drilling?…
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Antero Resources | Energy Companies

Antero Resources 3Q14: Shorter Stage Lengths Yield 20-30% More Gas
October 17, 2014October 17, 2014

Earlier this week Antero Resources, one of the largest drillers in the Marcellus/Utica, released their third quarter numbers along with an operational update. The company reports their new strategy of using shorter stage lengths (SSLs) when fracking wells has resulted in better producing wells–like 20-30% more productive than a non-SSL well. We’ve pulled out their operating update for both the Marcellus and Utica (an interesting read)…
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Anadarko | Energy Companies | EOG Resources | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

More on NY AG Schneiderman’s Bullying of Anadarko & EOG Resources
October 17, 2014October 17, 2014

If a mafia boss walks into a business owner’s store and “informs” that owner that the owner will start doing things the good fellas way (pay money, say 10% of all revenue) in return for “protection” from the “bad guys” that otherwise may make a visit to that place of business, it’s called a shake down. If we substitute “New York Attorney General Eric Schneiderman” for mafia boss and “oil/gas company” for business owner, you’d have what’s just happened in New York State–and it’s called “good government.” Schneiderman isn’t personally getting rich from the deal he’s just forced down the throats of two major o&g companies (we don’t think, anyway). But make no mistake–the businesses Schneiderman targets would lose massive amounts of money in lower stock valuations if they don’t agree to Schneiderman’s “offer.” Schneiderman held the gun of his office to the collective heads of Anadarko Petroleum and EOG Resouces over the issue of fracking (something not even happening in NY), and they agreed to dance and sing his tune. They’ve just been shaken down. Here are the details…
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Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Southwestern Energy | Statewide WV | Washington County | West Virginia

Chesapeake Sells Close to 25% of Marcellus/Utica Operation
October 16, 2014October 16, 2014

The Chesapeake Energy fire sale continues–and this time it’s cut right into the bone and sinew of the company. The beneficiary of Chesapeake’s ongoing divestiture, this time, is Southwestern Energy. Southwestern has signed a deal to pick up 413,000 (!) Marcellus/Utica acres, most of it in West Virginia with some of it in Washington County, PA. Much of the land is in prime wet gas areas (see the map below). The deal includes 256 (!) operating and producing Marcellus and Utica Shale wells and another 179 (!) non-operated, non-producing wells–a total of 435 drilled wells. Southwestern is paying Chesapeake $5.375 BILLION for the deal–which will make Chesapeake’s real boss, corporate raider Carl Icahn, very happy…
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Energy Companies | Keystone Mountaineer | Mountaineer Keystone | PDC Mountaineer | Statewide WV | West Virginia

Major New Player in the Marcellus Emerges: Mountaineer Keystone
October 16, 2014November 19, 2015

Earlier this week Mountaineer Keystone, a shale driller headquartered in Pittsburgh, announced it had bought out PDC Mountaineer for half a billion dollars ($500 million). Who are these two players? Mountaineer Keystone is backed by the money of investment firm First Reserve. PDC Mountaineer is a joint venture between PDC Energy and investment firm Lime Rock Partners. The deal means Mountaineer Keystone picks up a huge 131,000 net acres in the Marcellus/Utica region, boosting the company’s position to a new 181,000 net acres. Also part of the deal is a small gathering pipeline operation. Here’s the details…
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Allegheny County | Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Odebrect Cracker Aims to Attract Chemical/Plastics Manufacturing
October 16, 2014October 16, 2014

David Peebles, Odebrecht’s vice president of business development and the guy working to make the $4 billion ethane cracker and petrochemical plant project in Parkersburg, WV a reality, gave some great insights into just how vast and complex a process building that plant is. Speaking yesterday at the Penn State Natural Gas Utilization Conference in Southpointe, PA, Peebles said…
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Energy Companies | Pennsylvania | Statewide PA | WPX Energy

WPX Marcellus Assets Being Shopped in “Controlled Auction”
October 15, 2014October 15, 2014

As MDN has pointed out for some time now, Elvis, er um, WPX has left the building. Meaning WPX, although finishing up wells already permitted and started in the Marcellus–will not drill any new wells in the Marcellus. Does that mean landowners should be concerned that WPX will sell their already-drilled (and producing) wells in the Marcellus? In February, WPX spokeswoman Susan Oliver told MDN the company is definitely not selling their already drilled wells–100 of them or so (see WPX Gives MDN an Update on Their 2014 Marcellus Plans). However, an analysis by a trusted energy analyst has us wondering…
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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Rex Energy

Martian Chronicles: Delaware River Basin Shifts to Western PA?
October 14, 2014October 14, 2014

The Martians are getting an assist from THE Delaware Riverkeeper herself (Maya van Rossum). Get this: The Delaware Riverkeeper, along with another anti-drilling group called The Clean Air Council (both based near Philadelphia), have filed an appeal with Adams Township (Butler County), PA over the town’s decision to grant Rex Energy permits to drill gas wells 3/4 of a mile away from the Mars public school. In June, Adams Township supervisors voted 4-1 to allow drilling to commence, subject to getting permits from the Dept. of Environmental Protection (see Adams Twp, PA Votes to NOT Block Drilling “Near” Mars School). Just a month ago, Rex got the permits from the DEP to begin drilling (see Rex Gets Permits to Drill Near Martian School, Antis Apoplectic). Some Martian parents objected, and found a sympathetic wallet all the way across the state in Philadelphia with van Rossum. What does Butler County, on the western edge of PA have to do with van Rossum’s Delaware River Basin group, which is focused exclusively on the eastern edge of PA? NOTHING. Except for her personal hatred of fossil fuels and willingness to spend her own (and other people’s) money to fight shale drilling wherever it happens…
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Endeavour International | Energy Companies

Endeavour Intl Files for Bankruptcy, Blames North Sea Projects
October 14, 2014October 14, 2014

Since 2011 MDN has covered the story of driller Endeavour International’s aborted attempt to buy 50,000 Marcellus Shale acres from SM Energy. Five months after signing the deal, Endeavour pulled out of the deal (see Endeavour Leaves SM Energy at the Altar, SM Ready to Sue). Two and a half years of litigation later, the two sides finally settled (see Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties). Although Endeavour has no active drilling program in the Marcellus/Utica, they do still have acreage under lease in the Marcellus. Last Friday, with plenty of excuses (seems to be their standard operating procedure), Endeavour filed for bankruptcy protection and their stock has been suspended on the NYSE…
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Atlas Energy | Energy Companies

Atlas Energy/Pipeline Sells Itself (Again) – for $7.7 BILLION!
October 13, 2014October 13, 2014

Breaking news as we go to press: Pittsburgh-based Atlas Energy and Atlas Pipeline, both with operations in the Marcellus/Utica (part of which was previously sold to Chevron for $4.3 billion, see The Unconventional Rise & Sale of Atlas Energy), has just sold what was left of itself–again. This time the buyer is Targa Resources for a truly atounding $7.7 billion…
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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Statewide PA | Tioga County (PA) | Washington County | Wastewater

Second Generation Wastewater Impoundments – Truly Safe?
October 13, 2014October 13, 2014

Little did we know it at the time, but former PA Dept. of Environmental Protection Chris Abruzzo’s last public interview was granted to MDN editor, Jim Willis, just three weeks ago before Abruzzo resigned (see PA DEP Sec. Abruzzo’s Last Public Interview…with MDN). Topic A that Jim asked Sec. Abruzzo was about the recent record fine of Range Resources ($4.15 million) for a series of leaky wastewater impoundments. Abruzzo stated during that interview, several times, that newer “next generation” impoudments have come along that are much safer. What are these “next generation” impoundments and are they really safer?…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Susquehanna County

Important Landowner/Driller Case Heads to PA Supreme Court
October 13, 2014October 13, 2014

A Pennsylvania landowner signed a lease with Cabot Oil & Gas in 2007. Part of the way through the lease, before Cabot initiated drilling, the landowner sued Cabot to dissolve the lease, citing certain reasons that they believe justified that action. The case went to court and the court eventually threw out the landowner’s case, meaning the lease is still in effect. Cabot then filed a counterclaim to have the lease term extended, something called an “equitable extension of lease terms.” In other words, once sued, the lease term should go on pause, and because they won, Cabot should then be able to un-pause the lease term and continue (which would otherwise have expired due to the long time it takes for court cases to play out). The court did not grant Cabot’s request and the case has now been appealed all the way to the PA Supreme Court. The decision will set an important precedent for both landowners and drillers…
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East Resources | Energy Companies | Erie County (NY) | New York

Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B
October 10, 2014October 10, 2014

As MDN previously told you, Marcellus money has just purchased the Buffalo Bills NFL team (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money). Yesterday NFL owners, who had gathered to vote, took all of about 15 seconds to approve the $1.4 BILLION purchase of the Bills team by East Resources (and former Marcellus Shale driller) Terry Pegula and his wife Kim. The vote was 32-0 in favor of the sale. We think in honor of this momentous occasion the team should be renamed to be the Buffalo Marcellus Bills. Maybe we can just call them the “MarBills” for short?…
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Chesapeake Energy | Energy Companies

Carl Icahn Has Lost $633 Million on Chesapeake Gamble…So Far
October 10, 2014October 10, 2014

The firings will continue until morale improves! Or at least until Carl Icahn makes money. Once upon a time corporate raider Carl Icahn was Chesapeake Energy’s second largest investor. Today, he’s the company’s largest investor. Ichan has certainly made his presence know. Using his proxy (we call him a toady) Doug Lawler, the CEO Icahn installed after he ousted founder Aubrey McClendon from that position, Doug “the ax” Lawler went to work (see Chesapeake’s CEO Celebrates Axing 1,200 People Making Carl More $). To hear Chessy people talk (the few that are left) it’s been all butterflies and unicorns. Everything is looking up–except Ichan’s investment. With the downturn in oil and natgas prices, Ichan’s Chesapeake stocks have tanked and his big gamble on Chesapeake isn’t looking so rosy anymore…
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