Energy Companies

Energy Companies | Gastar Exploration

Gastar 2015 Budget: Scaling Back Marcellus/Utica Drilling
September 18, 2014September 18, 2014

A pair of announcements issued by Marcellus/Utica driller Gastar Exploration on Monday. One of the announcements is that the company is floating another 17 million shares of stock to help raise more operating capital. The second (we would argue related) announcement is a brief update on Gastar’s 2015 capital budget. The company will spend $257.3 million in 2015, comprised of $222.7 million for drilling, completion and infrastructure costs; $28 million for land and seismic expenditures; and “other” costs of $6.6 million. The interesting tidbit in Gastar’s 2015 budget announcement is how much they spend to drill a well in various plays, including the Marcellus and the Utica, and that in 2015 they won’t drill very much in the northeast…
Read More “Gastar 2015 Budget: Scaling Back Marcellus/Utica Drilling”
CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble Energy | Pipelines

CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M
September 18, 2014September 18, 2014

Three weeks ago MDN brought you the news that CONSOL Energy together with Noble Energy (two drillers who joint venture together on some Marcellus drilling) have joined forces to form a midstream (pipeline) company called CONE Midstream to hook up pipelines to their Marcellus wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). The new pipeline company will take the corporate form of a master limited partnership, or MLP. Yesterday Noble announced an initial public offering (IPO) for “units” in the new company (think shares of stock). The companies hope to sell 20.1 million units and raise $422.6 million for the fledgling midstream company…
Read More “CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | M&A

Morgan Stanley Buys Partnership in Eureka Hunter for $65M
September 17, 2014September 17, 2014

Yesterday Magnum Hunter, a Marcellus/Utica driller with a number of subsidiaries, including midstream company Eureka Hunter, announced that Morgan Stanley is becoming a partner in Eureka Hunter. Price tag for becoming a partner? $65 million. According to Magnum Hunter and Morgan Stanley, Eureka Hunter is now worth $1 billion. The deal itself is complicated and includes multiple subsidiaries and names you’ve likely never heard of (like Ridgeline Midstream and ArcLight Capital Partners). We just told you the news in a nutshell. Below is the press release from Magnum Hunter announcing that news–a press release obviously written by lawyers, rendering it virtually unreadable for the rest of us…
Read More “Morgan Stanley Buys Partnership in Eureka Hunter for $65M”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation

Mich. AG Continues to Target Chesapeake, Racketeering Charge
September 17, 2014September 17, 2014

In June 2012 Reuters tried to stir up trouble against Chesapeake Energy by broadcasting “leaked” (Watergate anyone?) emails that somehow magically appeared on the Reuters doorstep that supposedly show Chesapeake trying to collude with Encana Energy to keep the price of Michigan state land oil and gas leases artificially low (see Did Reuters Break the Law with Latest Chesapeake Story?). Eventually the Michigan Attorney General’s office filed charges against Chesapeake, even though the federal government had investigated and didn’t find anything worth pursuing (see Feds Clear Chesapeake & Encana in Collusion Case, Michigan Next?). Michigan is still hell-bent on shaking down Chesapeake (see Michigan AG (Unbelievably) Files More Charges Against Chesapeake). The same Michigan Attorney General, Bill Schuette, has also filed charges against Chesapeake’s leasing arrangements with private landowners. On Monday, a Michigan court said Chessy must face a trial on one charge of racketeering (a felony) and 20 counts of using false pretenses to allegedly defraud private landowners in the state…
Read More “Mich. AG Continues to Target Chesapeake, Racketeering Charge”
Chesapeake Energy | Energy Companies

Chesapeake Hires New Mouthpiece
September 17, 2014September 17, 2014

Chesapeake Energy has a new mouthpiece: Brad Sylvester. The company announced (a few weeks ago) that Sylvester is joining Chesapeake as its new Vice President of Investor Relations and Communications. He has his job cut out for him. The company is being sued and hauled into court in multiple states over leasing practices. Michigan, as we highlight in another MDN story today, continues to press the attack on Chesapeake–this time with a racketeering charge in federal court (a felony). Sylvester was most recently employed by Southwestern Energy. He’ll report to Chesapeake’s Chief Financial Officer, Nick Dell’Osso. Nick, you may recall, is one of Aubrey McClendon’s fair weather friends (see McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him). Here’s the Chessy announcement that Sylvester is stepping into the lion’s den:
Read More “Chesapeake Hires New Mouthpiece”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY | Tompkins County

Norse Energy Appeals Town Ban Case Back to NY High Court
September 16, 2014September 16, 2014

In April MDN reported on the rumors that Norse Energy, the ill-fated company that bet big on New York State with 180,000 acres of leased land in NY, had been sold at bankruptcy court (see Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?). As we pointed out in the story, we don’t know if the company was actually sold, and if it was, who the actual buyer was. We still don’t know. What we do know is that the only thing left to sell were Norse’s leases, since they had already sold off all of the hard assets (see Lights Turned Off, Door Closed – Good Night, Norse Energy). However, the Norse trustee retained at least some of the leases assets so the company could continue their lawsuit against New York for bankrupting them. Try to get back at least some of that money. Then the double-whammy: The New York Court of Appeals (our highest court) ruled against Norse and said local towns can ban fracking (see Shale Drilling in NY is Over – High Court Upholds Town Bans). The new news, just coming to light for us, is that Norse appealed that decision back to the Court of Appeals for a second time, based on a recent decision in a Colorado court…
Read More “Norse Energy Appeals Town Ban Case Back to NY High Court”
Butler County | Carroll County | Energy Companies | Ohio | Pennsylvania | Rex Energy | Utica Shale

Rex Energy: Utica Wells Pump Liquids; New Rig in PA; LOC +$100M
September 16, 2014September 16, 2014

Rex Energy yesterday issued an interim third quarter 2014 update on results for their recently drilled and completed Utica Shale wells in Ohio, and on operations in Butler County, PA. Rex’s OH Utica wells coming online in Carroll County, OH showed low daily output for methane–2.1 million cubic feet per day–but more than made up for it with big output for condensate (“natural gasoline”) and natural gas liquids: one set of Rex’s Utica wells averaged 454 barrels per day of condensate and 433 barrels per day of NGLs. Rex also announced they are adding a third drilling rig in their Butler, PA area starting in early 2015 after picking up 208,000 acres from Shell (see Rex Energy Takes Shell to the Cleaners – Picks up 208K Acres). And, the company got a $100 million increase in their line of credit…
Read More “Rex Energy: Utica Wells Pump Liquids; New Rig in PA; LOC +$100M”
Energy Companies | Vantage Energy

Vantage Energy IPO Target Goes from $400M to $601M
September 16, 2014September 16, 2014

In July, Colorado-based Vantage Energy, with a major operation in the Marcellus Shale, filed paperwork with the Securities and Exchange Commission for an initial public offering (IPO) in which they said they want raise $400 million (see Marcellus Driller Vantage Energy Files for $400M IPO). That’s out the door. Yesterday, Vantage announced it is moving forward with an IPO later this month and they now hope to sell up to 23,550,000 shares of common stock and raise $601 million–a pretty healthy jump. Vantage owns 48,000 acres in the Marcellus Shale–in Greene County, PA. They also have a sizable stake in the Barnett Shale (in Texas). Vantage is a relatively young company, founded in 2006 by the former president of EnCana, Roger Biemans…
Read More “Vantage Energy IPO Target Goes from $400M to $601M”
Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Rex Energy

Rex Gets Permits to Drill Near Martian School, Antis Apoplectic
September 15, 2014September 22, 2014

Finally! On Friday, the Pennsylvania Dept. of Environmental Protection wisely granted drilling permits to Rex Energy for a site 3/4 of a mile away from a school in Mars (Butler County), PA. Some of the Martian parents are anti-drilling and demanded the school board engage in the illegal action of setting up a no-drill zone two miles beyond school property (see Martians Still Trying to Invade Neighbors to Prevent Drilling). Clearly such a measure would never hold up in court–but that doesn’t stop anti-drillers from trying, wasting everyone’s time and money. Now it looks to be a moot point. However, the Martians are not done yet. They’re a bit shell-shocked that their pretentious demands have been turned down (adult versions of spoiled children who have just been told “NO!”), so they’re regrouping and hatching new strategies on where to go from here…
Read More “Rex Gets Permits to Drill Near Martian School, Antis Apoplectic”
East Resources | Energy Companies | Erie County (NY) | New York | Statewide NY

National Media Acknowledges Marcellus Shale Saved the Bills
September 15, 2014September 15, 2014

It’s not often that MDN sets the trend for national news, but we have to say we believe we did this time. Going back to June 2014, MDN speculated that if the Buffalo Bills franchise was purchased by billionairre Terry Pegula, it would be Marcellus money funding the purchase (see Fascinating Connection Between NFL & Marcellus/Utica). We then brought you the news that Aubrey McClendon, the former Chesapeake CEO and fracking “bad boy” the media loves to hate, would also help fund the purchase via his purchases of Marcellus and Utica property from Pegula (see Aubrey McClendon’s Money Makes Purchase of Buffalo Bills Possible). Last week the deal was struck and indeed, Pegula the Marcellus fracking billionaire, was the winner (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money). After we reported that story on Wednesday, it took a couple of days, but eventually even Gannett and the Binghamton Press & Sun-Bulletin had to admit we were right. In an interesting twist, the PSB reports that NY Gov. Andrew Cuomo is gushing with praise for Pegula, which of course just points out his sleazy, political double-standard on the fracking issue…
Read More “National Media Acknowledges Marcellus Shale Saved the Bills”
Energy Companies | Shell

Shell CEO van Beurden Talks on American Shale, Global Warming
September 12, 2014February 1, 2016

Last Friday Shell’s still relatively new CEO, Ben van Beurden, had a sit-down interview with editors and reporters from the Washington Post. You may recall that not long after taking the reigns of Shell (in March 2014) van Beurden announced the company would shed some of its American shale assets (see Cuts Coming to Shell’s Marcellus Shale Operations). Sure enough, they did (see Rex Energy Takes Shell to the Cleaners – Picks up 208K Acres). But a few days later Shell picked up more Marcellus acreage, making our heads spin (see After Selling 208K Marcellus Acres, Shell “Buys” 155K More Acres!). When asked by Post editors about Shell’s stumbling and bumbling in American shale, van Beurden said the company is not abandoning American shale–just being picky and going after “the best of the batch”…
Read More “Shell CEO van Beurden Talks on American Shale, Global Warming”
East Resources | Energy Companies | Erie County (NY) | New York

Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money
September 10, 2014September 10, 2014

For some time we’ve followed, with interest, the story of the sale of the Buffalo Bills NFL football team (see Fascinating Connection Between NFL & Marcellus/Utica). East Resources–an oil & gas driller with extensive holdings in the Marcellus–is owned by Terry Pegula. Terry sold much of his Marcellus holdings in 2010 to Shell/SWEPI for $4.7 billion. He later purchased the Buffalo Sabres NHL hockey team. Not long ago he sold off more (the rest?) of his Marcellus and Utica acreage to Aubrey McClendon for $1.75 billion (see Aubrey McClendon’s Money Makes Purchase of Buffalo Bills Possible). Terry has, according to “sources” of Buffalo Business First, won the bidding contest for the Bills. The price? Uncoincidentally, $1.4 billion–the highest price paid for any NFL franchise in the history of the league…
Read More “Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money”
Accidents | Energy Companies | Hilcorp Energy | Industrywide Issues | Mercer County | Pennsylvania

Hilcorp has 2 Accidents (in 3 Weeks) in Mercer County, PA
September 9, 2014September 9, 2014

Hilcorp is having some bad luck in Mercer County, PA. Three weeks ago two storage tanks at a Hilcorp well pad caught fire and exploded–no one injured. Then, this past Saturday (three weeks later), a separator caught fire at a well pad. No big explosions this time–at least none that were heard. However, up to 20 homes had to be evacuated while the fire was extinguished. Once again, no injuries…
Read More “Hilcorp has 2 Accidents (in 3 Weeks) in Mercer County, PA”
Energy Companies | Gastar Exploration | Marshall County | Utica Shale | West Virginia

Gastar’s First Utica Well Shines – Nearly 30 Mmcf/d
September 8, 2014September 8, 2014

Gastar Exploration is out today with an operations update for their Utica drilling program. The company reports initial production on their first-ever Utica Shale well, drilled in Marshall County, WV, is flowing at a rate of 29.4 million cubic feet of gas per day. Those numbers easily put Gastar’s first Utica well among some of the top performers. According to Gastar CEO Russell Porter, they plan to drill “one or two” more Utica wells later this year/early 2015, get the results, ans then make a decision on how aggressively they’ll roll out their full Utica drilling program. Here’s the details on Gastar’s first Utica well…
Read More “Gastar’s First Utica Well Shines – Nearly 30 Mmcf/d”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | Shell

Shell Files Permit to Build Barge Facility at Cracker Plant Site
September 8, 2014September 8, 2014

Something just coming to light now. In February of this year, Shell applied for a permit with the U.S. Army Corps of Engineers to build a barge facility on the Ohio River in Beaver County, PA at the site of Shell’s proposed ethane cracker. Is this yet another sign that Shell is finally getting serious about building the multi-billion dollar cracker plant in PA?…
Read More “Shell Files Permit to Build Barge Facility at Cracker Plant Site”
American Energy Partners | Chesapeake Energy | Energy Companies

Another Brilliant McClendon Move: ‘Pure Play’ Public Companies
September 5, 2014September 5, 2014

Big news from MDN friend and Marcellus/Utica driller Aubrey McClendon. McClendon, now CEO of American Energy Partners (and former CEO of Chesapeake Energy), told a Hart Energy conference yesterday that the companies he’s started since leaving Chesapeake will soon go public–each of them individually. And he’ll start even more companies that will go public. McClendon is adopting a “pure play” approach in which each company will be independently run and focus on a single shale play. Once again McClendon has taken the road less traveled and is pioneering a brilliant strategy to dominate the plays which he chooses to target. MDN’s words when the Chesapeake board dismissed Aubrey (from April 1, 2013) were prophetic: “Why is it an error to show McClendon to the door even in light of his aggressive financial deals? You think McClendon will take his piles of money and sit on a Caribbean beach somewhere? In your dreams! He’ll be back, and he’ll start (or buy) another company that will directly compete with Chesapeake. You can bank on it.” (see McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him)…
Read More “Another Brilliant McClendon Move: ‘Pure Play’ Public Companies”