Energy Companies

Antero Resources | Energy Companies | Industrywide Issues | Research

Drill Capital Launches Drill Research; Nifty Antero/Utica Report
January 8, 2014January 8, 2014

MDN does not usually run self-serving press releases that are the sum total of “look at us.” But sometimes we do–when the release piques our interest. Such a release was issued yesterday by investment firm Drill Capital–a firm focused on investing in the North American energy sector. According to yesterday’s press release, Drill Capital has formed a separate, dedicated research arm called Drill Research that will evaluate energy sector investment opportunities. Of course this is a marketing technique to attract customers (i.e. investors) to join Drill Capital. Certainly nothing wrong with that! What piqued our interest is their publication of a sample model portfolio highlighting Drill Research’s top pick. Which is? One of the top drillers in the Marcellus and Utica Shale: Antero Resources.

By visiting the Drill Research webpage highlighted in the release, you can read their research and view the model portfolio. If you do, you’ll find interesting details about Antero, the Utica Shale, the Marcellus Shale and several other major U.S. shale plays. It’s definitely worthwhile info, which is why we share it with you…
Read More “Drill Capital Launches Drill Research; Nifty Antero/Utica Report”
Energy Companies | Energy Corporation of America | Greene County (PA) | Pennsylvania

China Comes to the Marcellus – to Learn and to Profit
January 8, 2014January 8, 2014

In the dead of the holiday season, on Friday, Dec. 27, Energy Corporation of America (ECA) issued a press release that largely went unnoticed. In the release, ECA announced it has formed a 50/50 joint venture partnership with the world’s second largest (and China’s largest) coal company, China Shenhua Energy Company (100% Chinese government owned), to drill 25 Marcellus wells in Greene County, PA. Shenhua will invest $90 million in the venture and in the process learn how drill in shale–knowledge currently lacking in China. It’s not much of a stretch to predict this is not the final involvement of Chinese money that will flow to the Marcellus and Utica Shale.

Here is the brief statement issued by ECA, followed by a story about the jv from China Daily:
Read More “China Comes to the Marcellus – to Learn and to Profit”
Energy Companies | Lease & Royalty Payments | Ohio | Protege Energy | Utica Shale | Washington County (OH)

Marietta, OH Offered $4,750/Acre + 17.5% Royalties for 35 Acres
January 7, 2014January 7, 2014

An offer–or more accurately a pre-offer–was made at the Marietta (OH) City Council meeting yesterday that would put an initial $166,250 in the city’s coffers from leasing 35 city-owned acres along the edge of the city for shale drilling. A driller is tentatively offering $4,750 per acre as a signing bonus, plus 17.5% royalties, for land in the area. Some city council members (Democrats) expressed concerns about the potential offer, and several residents from anti-drilling groups in attendance also added their ~~drivel~~ 2 cents.

Here’s more of the details about the offer–the driller who’s making it, when the drilling would begin, and what was ultimately decided as the next step at yesterday’s meeting…
Read More “Marietta, OH Offered $4,750/Acre + 17.5% Royalties for 35 Acres”
Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Mahoning County | NiSource | Ohio | Pennant Midstream | Processing Plants | Utica Shale

Pennant Midstream Says Hickory Bend (OH) Cryo Plant Now Ready
January 7, 2014January 7, 2014

Good news! Pennant Midstream announced yesterday that its Hickory Bend cryogenic processing plant in Mahoning County, OH is now live and online and ready to receive “wet gas” from the Utica Shale. You may recall Gov. John “foreigner hunter” Kasich dedicated the plant back in October (see OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). However, the $375 million plant was not quite ready at that point. It is now, and the gas will start flowing soon.

The even better news is that Pennant, a joint venture between Hilcorp Energy and NiSource, is preparing to build two more plants at the same location. Each plant can handle 200 million cubic feet of raw gas per day, separating it into methane and natural gas liquids (NGLs). The NGLs are then pipelined elsewhere for further processing. Here’s yesterday’s announcement:
Read More “Pennant Midstream Says Hickory Bend (OH) Cryo Plant Now Ready”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy Issues Utica Production Guidance for 2013, 1Q14
January 7, 2014January 7, 2014

Gulfport Energy, one of the most important (and increasingly prolific) drillers in the Utica Shale released a short update yesterday to crow about their production numbers for 2013, set production expectations for the first quarter of 2014, and to remind investors to invest early and invest often.

Here’s yesterday’s Gulfport update…
Read More “Gulfport Energy Issues Utica Production Guidance for 2013, 1Q14”
Antero Resources | Chesapeake Energy | Energy Companies | Gulfport Energy | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Surprise Move: ODNR Releases 3Q13 Utica Shale Production Report
January 6, 2014January 6, 2014

Just as MDN went into hiatus for a few days for the holidays, on New Year’s Eve the Ohio Dept. of Natural Resources (ODNR) issued a major announcement: they published their first-ever quarterly production report for the Utica Shale. As MDN previously reported, the Ohio legislature passed a law that requires quarterly reporting (see Ohio Moves One Step Closer to Quarterly O&G Production Reports). However, last word we had was that the reporting would not be required by drillers until “starting” January 2014 (see Ohio Moves to Quarterly Production Reports Starting Jan 2014). Obviously our (and everyone else’s) understanding was wrong. The ODNR has been quietly requiring drillers to start reporting quarterly in 2013, not 2014, and the first such report–for the third quarter of 2013–was released on New Year’s Eve.

We’re certainly not complaining! Just surprised. What does the report show? It shows that the OH Utica produced 33.6 billion cubic feet (Bcf) of natural gas in just 3Q13. For context, the OH Utica produced just 12.8 Bcf of natural gas for all of 2012. It means that 2013 will shape up to be an extraordinary production year in the Utica Shale, proving the naysayers wrong and validating the Utica Shale as one of the most important shale plays in the country. We provide the ODNR announcement below, which crowns two Gulfport wells as most productive (one for oil and one for gas) for 3Q13. We also include analysis of the numbers by our friends at the Akron Beacon Journal. Finally, below is a full copy of the report, in handy PDF format (7 pages long) for you to download or print for your own use.
Read More “Surprise Move: ODNR Releases 3Q13 Utica Shale Production Report”
Chesapeake Energy | Energy Companies

Chesapeake Energy Jan 2014 IR Update Focuses on Utica/Marcellus
January 6, 2014January 6, 2014

Corporate raider Carl Icahn will be happy. Chesapeake Energy, the company where Icahn pulls all the strings, released an investor’s report (IR) on Jan. 2 that shows capital expenses year over year have dropped an astonishing 48%, thanks to Doug Lawler (Icahn’s toady) firing 1,200 Chesapeake employees in 2013 (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day). The company reports net income for 2013 is forecast to be up 150%, and profits will be up 33%. However, overall production for the company is only up a minuscule 3%, largely because Chesapeake sold off so many assets in order to “right” the financial ship–or so they say.

Below is a good analysis of the Jan. 2 IR by a Seeking Alpha contributor, along with a copy of the Jan. 2 IR (embedded below). Interesting to MDN: Although the Chesapeake report contains a map showing 10 shale plays where Chesapeake remains active (slide #5), management chose to highlight just three of those 10 plays by providing detailed information in the Jan 2 report. Two of the three are the Utica and Marcellus (slides #14 & #15)…
Read More “Chesapeake Energy Jan 2014 IR Update Focuses on Utica/Marcellus”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County | WPX Energy

Hanger Continues to Use Franklin Forks Water as Campaign Issue
December 30, 2013December 30, 2013

As MDN has previously pointed out, former Secretary of the PA Dept. of Environmental Protection (DEP) John Hanger is trying to make political hay out of methane in the water supply of three families in Franklin Forks (Susquehanna County), PA (see John Hanger Uses Franklin Forks Water Issue to Boost Gov Campaign). Which is kind of ironic since Hanger himself was raked over the coals by his own liberal buddies in Gasland for his handling of the same issue about 15 miles away in Dimock, PA. Hanger claims the DEP’s 16-month investigation in Franklin Forks was not independent enough for his taste. The DEP has fired back at their old boss and said they didn’t just rely on WPX’s investigation (as Hanger claims) but that they also conducted their own independent investigation and that Hanger is just making noise to, as we put it, boost his failing campaign for governor.

The sentiment coming from the DEP seems to be, “thanks for your unhelpful assistance John–now butt out”…
Read More “Hanger Continues to Use Franklin Forks Water as Campaign Issue”
Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Lenape Resources | Livingston County | New York | Regulation | Statewide NY

NY’s Ongoing War Against Natural Gas – An Update
December 30, 2013December 30, 2013

Lenape Resources is one of MDN’s favorite NY-based energy companies. We’ve heard their CEO John Holko speak at events touting the benefits of shale drilling in NY. John doesn’t just say good things about drilling, he puts his money (and his time) into the cause as well. In 2012 Lenape sued the Town of Avon, NY (Livingston County) over their hastily passed fracking ban, a ban that not only bans horizontal or shale fracking (which isn’t even allowed in NY) but also ended up banning vertical fracking in the town, something that’s been going on in NY for more than 40 years. Lenape lost the case in lower court and appealed it (see Lenape Appeals Ruling, Seeks to Overturn Frack Ban in Avon, NY).

In its heyday, before the NY frack moratorium that’s now 5 1/2 years old, Lenape employed 100 people. Today? They have 5 people. Sound familiar (cough *Norse Energy* cough)? NY is driving energy companies out of business with ongoing hostility by municipalities like Avon and with delays by the state. NY is about as business unfriendly as you get. Here’s an AP update on Lenape and the ongoing negative impact of the frack moratorium in NY:
Read More “NY’s Ongoing War Against Natural Gas – An Update”
Energy Companies | Seneca Resources

National Fuel’s Executive Chairman Retiring on April 1st, Sort of
December 30, 2013December 30, 2013

National Fuel is a big company–a $6.2 billion integrated company with its headquarters in Buffalo, NY and different divisions involved with shale drilling, pipelines and storage, utilities and more. National Fuel is also the parent of wholly-owned subsidiary Seneca Resources, one of the largest drillers in the Marcellus Shale (at last count they are the third largest owner of acreage with 775,000 Marcellus Shale net acres). So when there’s personnel changes at the top, it’s news. Today National Fuel announced that David Smith, formerly CEO until March of this year, and now Executive Chairman of the Board, will retire on (no joke) April Fool’s Day–April 1st. However, the announcement is a bit difficult to understand.

Apparently Smith is currently Executive Chairman of the Board, but after April 1st he’ll remain on the board as just Chairman (no Executive) of the Board. Say what? Yeah, we don’t know what the difference is either–except it seems to signal a further stepping away from day to day operations for Smith. That’s the takeaway we get from the National Fuel announcement…
Read More “National Fuel’s Executive Chairman Retiring on April 1st, Sort of”
Beaver County | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Begin Demolition at PA Ethane Cracker Site Early 2014
December 27, 2013December 27, 2013

In June 2011 Shell announced to the world that they would build a “world-scale” ethane cracker plant in the northeast (see Shell Commits to Building a Billion Dollar Chemical Plant in the Marcellus Region of U.S.). After looking around and being heavily courted by West Virginia, Ohio, and Pennsylvania, Shell finally chose a location northwest of Pittsburgh–in Beaver County, PA–in March 2012 (see Shell Announces Location of Ethane Cracker Plant). At the time a spokesperson said the final decision about whether or not to proceed was years away (see Shell’s Cracker Plant Actually “Years Away”?). She wasn’t kidding.

Fast forward two years later and it’s been a real roller coaster ride as to whether or not Shell would proceed–especially in light of recent comments by Shell’s retiring CEO Pete Voser that the company would not be able to build all three of its previously announced big projects, which includes the PA ethane cracker (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). But several recent things have happened to indicate the PA cracker plant project is alive and well, including the announcement yesterday that Shell has extended their option to purchase the proposed plant site in PA and intends to start demolishing existing buildings on the site in early 2014…
Read More “Shell to Begin Demolition at PA Ethane Cracker Site Early 2014”
Energy Companies | Hilcorp Energy | Lawrence County | Pennsylvania

A Look Back (& Forward) at Marcellus Drilling in Lawrence County
December 27, 2013December 27, 2013

As part of a year-end story review, the Elwood City Ledger (Lawrence County, PA) looks at how one of the smallest counties in the Marcellus Shale region has become a late-bloomer with a dozen new wells drilled in 2013. We hadn’t heard much about drilling in Lawrence County until recently. The news has all been about Hilcorp, and if our most recent story about Hilcorp is any indication, drilling in Lawrence will at least double, maybe triple in 2014 (see Hilcorp Goes Hogwild in Lawrence County – 11 Pads on the Way).

Here’s the “year in review” article from the Ledger that covers Marcellus drilling in Lawrence County, a year which (sadly) included a resolution passed by the Elwood City Council calling for a severance tax on shale drilling:
Read More “A Look Back (& Forward) at Marcellus Drilling in Lawrence County”
Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Statewide OH | Utica Shale

Summit Midstream Buys Gulfport’s Interest in Ohio Gathering
December 24, 2013December 24, 2013

Summit Midstream, until recently, has had midstream operations (pipelines, processing plants) in other major North American shale plays–but they are actively moving into the Marcellus and Utica Shale. In June MDN reported that Summit Midstream had purchased the Mountaineer Midstream gathering system from MarkWest Energy for $210 million in WV (see MarkWest Sells Doddridge County, WV Pipeline System to Raise Cash). On Friday, Summit purchased a significant joint venture share in the Ohio (Utica Shale) Gathering system for an undisclosed sum (although NGI’s Shale Daily is reporting the deal is worth $190 million). We have the Summit press release below, but it’s heavy and dense with joint venture this and partnership within partnership that.

Here’s the MDN simplified view of the deal…
Read More “Summit Midstream Buys Gulfport’s Interest in Ohio Gathering”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Monroe County | Ohio | Utica Shale

Magnum Hunter’s 3 Ormet Wells in Monroe County – Okay Results
December 24, 2013December 24, 2013

Some interesting production numbers from three wells drilled by Triad Hunter, the drilling subsidiary of Magnum Hunter, on property owned by the now bankrupt Ormet Corp, a huge aluminum smelter plant. The wells are in Monroe County, OH, the home of the (so far) most productive Utica Shale well in the state–the Yontz well drilled by Antero Resources (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d).

Monroe County is south of Belmont County and in what is now believed to be the sweet spot of the sweet spot in Utica Shale drilling–which includes Belmont, Harrison, Guernsey, Noble and Monroe counties. The production numbers for the three Magnum Hunter wells are, well, not all that impressive when compared to the Antero well and other wells in the southeastern OH area. Production for the MH three wells range from 2.7 to 5.1 million cubic feet per day of natural gas. However, the three wells together produce an average 1,788 barrels of condensate, which is impressive, because condensate sells for (a lot) more money than methane…
Read More “Magnum Hunter’s 3 Ormet Wells in Monroe County – Okay Results”
Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Range Strikes Deal with Mt Pleasant for 1 of 4 Water Impoundments
December 23, 2013December 23, 2013

Finally a happy ending in the ongoing kerfuffle over the fate of our water impoundments (“ponds”) in Mt. Pleasant (Washington County), PA. For a long time now MDN has reported on the back and forth between Range Resources, who operates the impoundments, and the local town board over whether those impoundments can continue to operate now that the wells they were intended to support have been drilled. As recently as September the town was telling Range to stuff it (see Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments).

However, after continuing negotiations, the two sides struck a deal last week for one of the four impoundments. At least it’s a start…
Read More “Range Strikes Deal with Mt Pleasant for 1 of 4 Water Impoundments”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter Top Brass Buys Their Own Stock
December 23, 2013December 23, 2013

We usually don’t report on stock prices going up or down for a given company (unless it’s part of a larger story line). We also don’t typically report on the how much stock senior management holds in a company. This time are reporting it, for a couple of reasons. In our daily review of the news, we noticed an article about the CFO and CEO of Magnum Hunter, a large Marcellus and Utica Shale driller, buying large blocks of stock in their own company. Which of course makes you wonder, what do they know that we don’t?

As part of the story below, we also learn that the company’s largest outside investor is the odious George Soros who has upped his stake in the company by 882% in recent months. He now owns 1.43% of the company. Soros is an interesting, er, “character.” His money backs rabidly anti-drilling groups like the Public Accountability Initiative, while at the same time he’s buying up major stakes in companies like Magnum Hunter, EQT and Pioneer Natural Resources (see George Soros Plays Both Sides of Fracking Issue, for Profit). Here’s the low-down on MH’s top brass buying more of their own stock…
Read More “Magnum Hunter Top Brass Buys Their Own Stock”