Energy Companies

Accidents | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | XTO

Minor Setback for XTO in PA AG’s Criminal Case for 2010 Spill
November 4, 2014November 4, 2014

Arriving with the promise to hassle the Marcellus drilling industry when she took office in January 2013, Pennsylvania Attorney General Kathleen Kane kept her promise. After assuming office, she promptly looked for old cases she could reopen in order to make a name for herself. She found one in a two year-old case of an accidental spill of frack wastewater by XTO Energy (part of ExxonMobil). She proceeded to abuse the power of her office by bringing criminal charges against XTO for that two year-old (now four year-old) case (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). There is a new development in the case. XTO requested the case be dismissed because it was previously investigated “jointly” by both state and federal investigators. The judge presiding over the case has found that there was no “jointly” in the investigation and eventual settlement…
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Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell

MDN’s “Juvenile” Needling of Shell over Slow Cracker Pace
November 4, 2014November 4, 2014

An MDN reader wrote editor Jim Willis yesterday to take issue with our observation that “it’s about time” Shell did something to advance their ethane cracker project in Beaver County, PA (see Shell to Hold Info Session on Monaca Ethane Cracker Next Week). In a not-so-subtle way, the reader essentially told us to get our heads out of our…frac sand…and take note that Shell has been very active over the past year or so with advancing their project, contrary to our “juvenile” remarks suggesting otherwise. In particular, the old Horsehead Holding Corp. zinc smelter at the site was shut down this past May. The buildings were knocked down and are now almost completely removed from the site. Our not-so-subtle source also pointed us to Jeff Burd’s excellent blog site called Building Pittsburgh. Jeff refers to Shell and their cracker project as being like a duck…
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Chevron | Commodity Price | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues

EnLink Takes Ownership of Henry Hub from Chevron
November 4, 2014November 4, 2014

Technically this is not a Marcellus or Utica story–but it does has implications for the Marcellus/Utica region. If you’re around the natural gas marketplace in the United States for any amount of time, you will soon run into this strange-sounding price point called “the Henry Hub.” The HH is a market point where natural gas is bought and sold in southern Louisiana. Once upon a time, because of the pipelines running through the Gulf Coast (many of them from off-shore), some 20% of all natural gas flowed through the HH, making it the “benchmark” or best average price for natural gas–used for futures contracts and by NYMEX in commodity trading. All natural gas prices quoted at other sales locations use the HH as its benchmark or “basis” and compare themselves with the HH price. It’s been that way for two decades. The new news is that EnLink Midstream (the former Crosstex Energy and Devon Energy midstream units merged together) has just taken ownership of the pipeline system that includes the HH…
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Chautauqua County | Economic Impact | EmKey Gathering | Energy Companies | Energy Services | Industrywide Issues | Litigation | New York | Norse Energy | Pipelines | Taxation

Cuomo Dithers and Towns Like Gerry, NY Pay the Bill
November 3, 2014November 3, 2014

Not only has NY Gov. Andrew Cuomo’s dithering and refusal to make a decision on whether or not to allow horizontal hydraulic fracturing in the state materially harmed tens of thousands of landowners and farmers in the state (not to mention all of those who would have had high-paying jobs in the industry), it’s also harmed taxpayers in places like Gerry (Chautauqua County), NY. Because Cuomo dithered and Norse Energy went bankrupt, a division of Norse, Norse Pipeline, also went bankrupt because the gas wasn’t available to run through their pipeline in places like Gerry. That pipeline was sold to Emkey and a court has just re-adjusted the assessment of that pipeline’s value–from $2,616,444 to $320,439, causing Gerry to lose $2,305,368 of its tax base. Not only that…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Hold Info Session on Monaca Ethane Cracker Next Week
November 3, 2014November 3, 2014

All’s we can say is, It’s about time! Shell will hold a pair of public meetings next Thursday, Nov. 13, at the Lincoln Park Performing Arts Center in Midland (Beaver County) PA to discuss their plans for an ethane cracker plant in Monaca with area residents. Yes, no doubt the crazies from outside of the area will show up to gripe and complain, as always happens. No big deal. As of next week it be exactly one year ago that Odebrecht announced their “world scale” ethane cracker for Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Seems to us that since that time all of the momentum to actually build a cracker plant has been with Odebrecht/WV and that Shell’s PA effort seems to have lost steam. Perhaps Shell is finally stepping up their game once again and getting serious about building a plant, originally announced all the way back in March 2012 (see Shell Announces Location of Ethane Cracker Plant)…
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Alpha Natural Resources | Energy Companies

Alpha Natural Resources Back in the Marcellus
October 31, 2014October 31, 2014

Last December MDN reported that Alpha Natural Resources, a Virginia-based company and one of the country’s largest coal producers, had sold its Alpha Shale division with active Marcellus drilling in Greene County, PA to Rice Energy for $300 million (see Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy). We thought that was probably it for Alpha with respect to northeast shale drilling. But hold on, not so fast. What we weren’t aware of is that Alpha has a new joint venture with EDF Trading Resources and Alpha is drilling two wells this year in the Marcellus, with plans to drill another four next year…
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Accidents | American Energy Partners | Energy Companies | Industrywide Issues | Jefferson County (OH) | Ohio

AEP Well “Malfunction” Leads to Evacuation of ~400 Homes in SE OH
October 30, 2014October 30, 2014

A mechanical malfunction at a producing American Energy Partners Utica Shale well in Jefferson County, OH caused the evacuation of about 400 area homes from Tuesday night into early Wednesday morning, according to the Ohio Dept. of Natural Resources (ODNR). The well, near the Mingo Sportsmen’s Club, was successfully shut down by Boots & Coots International Well Control Inc. Although area residents interviewed said they didn’t feel in danger, it’s still disconcerting (and a hardship) when something like this happens. Here’s an ear-witness account…
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Energy Companies | Range Resources Corp

Range Resources 3Q14: Production Hits 1.2 Bcf/d, Big Credit Line
October 30, 2014October 30, 2014

Range Resources released their third quarter 2014 operational and financial update yesterday. The report shows the company is now producing 1.2 billion cubic feet per day, on average, of natural gas equivalents–up 26% from the same time last year. The company says they continue to realize “outstanding” well results in the Marcellus Shale, which is their main focus. Range also has a new bank line of credit agreement in place that allows them to borrow up to a massive $4 billion…
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Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess 3Q14: Says Almost Nothing About Utica Operations
October 30, 2014October 30, 2014

Not long ago Hess sold off its retail (gas stations) and transportation operations, completing its transformation into an E&P-only company (see Marathon Petroleum Buys the Hess Truck! What Will We Do for Xmas?). One of the operational areas for Hess is the Utica Shale in Ohio. In May of this year, the company said it was in the process of drilling 35 Utica wells this year (see Hess Likes Early OH Utica Results, Drilling 35 Utica Wells in ’14). However, when we look at the latest quarterly update from the company, published yesterday, we find the following very brief references to the Utica…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!
October 29, 2014October 29, 2014

Last week Cabot Oil & Gas issued its third quarter update. The official announcement was long on the financials and very short on details for their ongoing Marcellus Shale program in Susquehanna County, PA. We’ve lifted the relevant (short) section below. However, the company also held the ubiquitous analyst phone call and in that phone call (transcript below), we get a lot more detail about Cabot’s Marcellus program. One gem: the company is now producing 1.8 to 2.0 billion cubic feet per day of natural gas in the Marcellus. Cabot will be the first company to be officially inducted into the record-breaking 2 Bcf/d Club! Although the company plans to drill 180-190 new wells in 2015, only about half of those wells will be in the Marcellus. Alas, another shale play is now turning the head of Cabot…
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Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Susquehanna County

Southwestern 3Q14: 2 Wells Near NY Border are “Promising”
October 29, 2014October 29, 2014

Southwestern Energy released their third quarter financial and operational update late last week. Picking through the release we find that their Marcellus gas production is up 47% from a year ago this time. At the end of September, the company had 234 operating Marcellus wells in production, and another 102 wells in various stages of being drilled. The vast majority of Southwestern’s wells are in Susquehanna and Bradford counties (PA), with a fair number also in Lycoming County, PA. Southwestern says they continue to test “the Upper Marcellus” and have drilled three such wells to date. Perhaps the biggest news (for New Yorkers) is this statement: “Two wells have also been drilled near the New York border in Susquehanna County. Early results are positive and work has begun to build a gathering system for future development in this area.” You can’t tell us there isn’t a boatload of gas sitting right across the border in the Empire State–if only the man-child Andrew Cuomo would make up his mind to allow drilling…
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CONSOL Energy | Energy Companies

CONSOL Energy 3Q14: Splitting the Company in Two, 1 Bcf/d Club
October 29, 2014October 29, 2014

CONSOL Energy continues its transformation from coal company to oil and gas company. In fact, it’s nearly complete. On a conference call yesterday discussing the company’s stellar performance in the Marcellus and Utica Shale, CONSOL officials hinted that they will soon split the company, putting the coal operation into its own master limited partnership (MLP). Meanwhile, also on the same call, CONSOL CEO Nick Deluliis said any day now the company’s production volume will blow on by the 1 billion cubic feet per day mark. Welcome to the 1 Bcf/d club!…
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Energy Companies | Noble Energy

Noble Energy 3Q14: Production Up 95%, Drilled 23 New Wells
October 29, 2014October 29, 2014

Noble Energy released their third quarter numbers and operational update yesterday. The company operates in several U.S. shale basins as well as the Gulf of Mexico and several foreign locations. Of note is their ongoing program in the Marcellus Shale. Production for Noble from the Marcellus is up 31% from 2Q14 and up a big 95% year over year in 3Q14. They drilled 23 Marcellus wells during 3Q14 and brought 23 wells online during the quarter as well. Here’s the low down on Noble’s Marcellus program over the last three months:
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Accidents | Eclipse Resources | Energy Companies | Guernsey County | Industrywide Issues | Ohio

Explosion at Eclipse Resources Site in Guernsey Cnty – 1 Injured
October 28, 2014October 28, 2014

There was an explosion at an Eclipse Resources drilling site in Guernsey County, OH late last Friday night. One worker was reportedly hurt and taken by helicopter to the burn unit at the Akron Children’s Hospital. There are virtually no news accounts (so far) about the accident, and Eclipse has not yet posted anything on their website about the accident. Here’s the very brief (and only) account we can find, thus far:
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Antero Resources | Energy Companies | Industrywide Issues | Pipelines | Processing Plants

Antero Resources Launches Midstream IPO, Seeks $1B+
October 28, 2014October 28, 2014

Can Antero Resources do it again? A little over a year ago, in October 2013, Antero, one of the biggest players in the Marcellus/Utica Shale, floated an initial public offering (IPO) for the company, called “taking it public” because shares of stock will be owned and traded on a public stock exchange–and raised an incredible $1.57 billion (see Antero’s IPO Fetches $1.57B, Company Valued at $11B!). Antero is hoping lightening will strike twice, and indeed it may. Yesterday the company announced that it will spin off its midstream division into a new wholly-owned subsidiary, under a master limited partnership (MLP) structure, and offer “units” (think shares of stock) that will be publicly traded. The company plans to offer more than 43 million units to investors and if it gets the target $19-$21 per unit, the grand total will once again exceed $1 billion of new investment…
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Eclipse Resources | Energy Companies

Eclipse Resources 3Q14: Production Up 104% from 2Q14
October 28, 2014October 28, 2014

Yesterday MDN ran what we thought was a stellar analysis between two sets of wells drilled by Eclipse Resources in the Ohio Utica Shale (see Eclipse Numbers: Dry Gas vs Wet Gas in Utica – Which One Wins?). In addition to details for those two sets of wells, Eclipse also released (yesterday) a brief summary of third quarter production numbers. The numbers, compared to the biggies in the Marcellus/Utica like Cabot and Range, are small. But definitely trending in the right direction. Production for Eclipse is up 104% from previous 2Q14 levels–an average 85.8 million cubic feet equivalent per day. The production mix during 3Q14 was 78% natural gas, 9% natural gas liquids and 13% oil…
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