Energy Companies

Energy Companies | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Seneca Resources | Tennessee Gas Pipeline

TGP Signs up Seneca Resources for Niagara Expansion to Canada
December 18, 2013December 18, 2013

MDN already brought you the announcement that Kinder Morgan, owner of the Tennessee Gas Pipeline, successfully closed an open season that will allow the the TGP to expand their service to the Gulf Coast. A second announcement from KM yesterday says they’re also expanding service northward, to eastern Canada. KM said they’ve signed up Seneca Resources (drilling subsidiary of Buffalo-based National Fuel) to ship 158,000 dekatherms of natural gas per day to eastern Canadian markets on what KM calls their Niagara Expansion Project.

Seneca and their Marcellus Shale production will be the “foundation shipper” for the $74 million Niagara Expansion. Here’s the second KM announcement from yesterday:
Read More “TGP Signs up Seneca Resources for Niagara Expansion to Canada”
Energy Companies | Ethane | Industrywide Issues | Pipelines | Range Resources Corp

Range Resources Inducted into the Marcellus “1 Bcf/d Club”
December 17, 2013December 17, 2013

Range Resources issued an update today on recent activities and recent milestones achieved. They’ve just achieved a huge one. Range is now the third driller to achieve 1 billion cubic feet per day of production in the Marcellus Shale, joining Cabot Oil & Gas and EQT in that distinguished and exclusive “club” (see EQT 2Q13: Welcome to the Marcellus “1 Bcf/d Club”). Range also, ahead of an official announcement from Enterprise Products Partners, says that the ATEX (Appalachia-to-Texas Express) pipeline to the Gulf Coast is now up and running and they’re using it to ship up to 10,000 barrels of ethane per day. MDN knew the pipeline was in the testing phase but we did not know it’s now fully operational (see Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon).

The full update from Range:
Read More “Range Resources Inducted into the Marcellus “1 Bcf/d Club””
Energy Companies | Hilcorp Energy | Lawrence County | Pennsylvania

Hilcorp Goes Hogwild in Lawrence County – 11 Pads on the Way
December 17, 2013December 17, 2013

Marcellus/Utica driller Hilcorp continues to focus its efforts in Lawrence County, PA. In fact, you may say they’ve gone “hogwild” in Lawrence! The Lawrence County Planning Commission last week reviewed plans from Hilcorp for 11 (yes 11) well pad sites. Each pad has at least one well on it, and more likely 2-4 wells (perhaps more)–meaning Hilcorp plans to drill at least a couple dozen wells in the near future in Lawrence.

Here’s the details for where the 11 well pads are located:
Read More “Hilcorp Goes Hogwild in Lawrence County – 11 Pads on the Way”
Energy Companies | WPX Energy

WPX Energy CEO Ralph Hill is Out, Interim CEO James Bender is In
December 17, 2013December 17, 2013

A “hmmm, that’s interesting” story from WPX. Yesterday we told you about WPX’s kerfuffle over water buffaloes in Susquehanna County, PA (see WPX Decides to Let Franklin Forks Families Keep Water Tanks). Today, in what is likely unrelated to the water buffalo story, WPX has suddenly announced the departure (booting out?) of CEO Ralph Hill at the end of this month. Hill has spent his entire career (32 years) first with Williams, and then with the spun-off WPX Energy. However, he’s not an old man by any stretch–perhaps in his early to mid-fifties. The announcement wishes him well in his “future endeavors”–not in his “retirement.” Not only is Hill out as CEO, he’s off the board of directors too. Hmmm. What does it all mean?

The company is appointing James J. Bender as interim president, CEO and board member, effective Dec. 31, 2013. Hill will stick around until March to help with the transition. Here’s the mysterious WPX announcement issued today:
Read More “WPX Energy CEO Ralph Hill is Out, Interim CEO James Bender is In”
Energy Companies | Halcon Resources | Ohio | Statewide OH

Halcon Resources Lowers 2014 CapEx Spending, Not Production
December 17, 2013December 17, 2013

Yesterday Utica Shale driller Halcon Resources lowered their “guidance” (what they expect to do) in capital spending for 2014. That is, they said they will spend less money–about 14% less–than previously announced on their drilling programs in 2014. However, they also added they still expect to produce about the same amount of oil and gas, even though they’ll spend less.

Also in yesterday’s announcement, Halcon CEO Floyd Wilson, who tends to have a salty mouth (see Halcon CEO Says No More S***** Wells in Northern OH Utica), said the company will continue to sell off “non-core conventional assets” to raise an additional $300 million. Here’s the Halcon “spend less but produce more” announcement from yesterday:
Read More “Halcon Resources Lowers 2014 CapEx Spending, Not Production”
Chesapeake Energy | Energy Companies | EQT Corp | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP’s Mark Houser Says More Utica Acreage Sales Ahead in 2014
December 17, 2013December 17, 2013

EV Energy Partners (EVEP) recently attended the 12th Annual Wells Fargo Energy Symposium in New York City. EVEP’s CEO Mark Houser addressed the gathering and delivered a fair bit of information about EVEP’s Utica Shale drilling program. With 3/4 of a million leased acres in the Utica, when EVEP talks, people listen. You may recall that EVEP had previously put more than half a million of their Utica acres up for sale (see EVEP 3Q13: No New Land Deals to Announce). They’ve since done a small deal or two–but they retain most of their acreage. At the conference, Houser said he expects to announce more deals to sell their Utica acreage in 2014 (of course we heard the same story last year, see EV Energy Partners Utica Acreage Sale Delayed Until 2013).

Highlights of Houser’s talk at the Wells Fargo Symposium, including an update on their joint ventures with other drillers and EVEP’s view on the state of the midstream in Ohio:
Read More “EVEP’s Mark Houser Says More Utica Acreage Sales Ahead in 2014”
1st NRG | Energy Companies | Utica Shale

1st NRG Again Declares Their Intention to Drill the Utica, Maybe
December 17, 2013December 17, 2013

Something MDN finds amusing. Every now and again 1st NRG, a Denver-based exploration & production or “drilling” company pokes it’s head up and issues a press release to say in essence, “We’re still here, we still have 7,000 acres of leases in the Utica Shale, and we really really really really are gonna drill that acreage. Soon. Someday. As soon as we get the money. Really soon now.” We’ve chronicled this trawling-for-investors-by-press-release routine since October 2012 (see 1st NRG category on MDN for our previous stories).

Here’s the latest $99 press release that declares 1st NRG’s undying love for the Utica, along with their undying love for Wyoming’s Powder River Basin:
Read More “1st NRG Again Declares Their Intention to Drill the Utica, Maybe”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County | WPX Energy

WPX Decides to Let Franklin Forks Families Keep Water Tanks
December 16, 2013December 16, 2013

WPX Energy has made not only a smart move, but is doing the right thing. MDN told you last week about the three families in Franklin Forks, PA who say nearby Marcellus drilling by WPX Energy caused methane to migrate into their water wells (see WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp). The PA Dept. of Environmental Protection investigated (for years) and found the methane in the families’ wells is naturally occurring and not from WPX’s work. So WPX tried to remove the water tanks (“buffaloes”) they voluntarily provided to the families.

One family let them remove the water buffalo, the other two illegally resisted, so WPX was scheduled to come back today with warrants in hand to remove them. But last week WPX had a change of heart and said in essence, “Go ahead and keep the water buffaloes. We’ll donate them to you if you want them that badly.” To which we say, it was not only a smart PR move but a nice thing, the “right thing,” to do. It immediately denies the anti-drilling crazies more parading in front of TV cameras to talk about how heartless the drilling industry is. Here’s the latest on the Franklin Forks saga…
Read More “WPX Decides to Let Franklin Forks Families Keep Water Tanks”
American Energy Partners | Energy Companies | Utica Shale

McClendon Plan to Raise Additional $2B in “Unit” Offering
December 16, 2013December 16, 2013

Investors who want a piece of Aubrey McClendon’s plans to develop the Utica Shale are about to get a chance. On Friday, the Wall Street Journal and other media outlets disclosed that McClendon’s new company, American Energy Capital Partners, has filed with the Securities and Exchange Commission to sell up to 100 million “units” (something like a stock) for $20 per unit in an effort to raise up to $2 billion. McClendon plans to use the money to “develop or buy onshore oil and natural gas properties in the United States.” We imagine most of that will be focused on the Utica Shale where McClendon continues to focus his time and energy (see Exclusive: McClendon Buys 24K Acres of SWEPI Leases in OH Utica).

AECP has already raised $1.7 billion (see McClendon Gets a Little Help ($1.7B) from His Friends in OH Utica). Word of advice to Aubrey: Don’t sell any of those units to Carl Icahn…
Read More “McClendon Plan to Raise Additional $2B in “Unit” Offering”
Allegheny County | Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp

Range’s Big Money Deal to Drill Under Deer Lakes Park in SW PA
December 16, 2013December 16, 2013

MDN recently told you that Allegheny County, PA legislators, most of them Democrats, abandoned their fellow Dems to vote down a ban on drilling under county parks 9-2 (see Allegheny County (PA) Council Votes Down Drill Ban for Parks). We now know why. They all didn’t suddenly turn into pro-drillers–too many wacko constituents on their left to do that. No dear friends, just follow the money.

The signing bonus offered by Range Resources to legislators to drill under Deer Lakes Park is $3.5 million. But that’s peanuts if the drilling goes forward and if there’s as much gas under the park as Range believes there is. With a royalty rate of 17%, the county stands to make as much as a mind-blowing $70 million from that single county park! And of course the legislators will get to decide how all that cashola gets spent. It’s like putting a 10-ton carrot in front of Bugs Bunny. Just too much to resist…
Read More “Range’s Big Money Deal to Drill Under Deer Lakes Park in SW PA”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Seneca Resources

Seneca Resources – Now Drilling 2X Wells in Same Amount of Time
December 16, 2013December 16, 2013

Yesterday the Philadelphia Inquirer took an inside look at major Marcellus Shale driller Seneca Resources (the drilling subsidiary of National Fuel Company) and the dramatic increase in efficiencies Seneca has achieved. Like Cabot and other Marcellus drillers, Seneca just keeps getting better with time. A few years ago it took Seneca a month to drill a new Marcellus well. Today? About 16 days–roughly half the time. Put another way–they now drill two wells in the time it used to take them to drill one.

Not only that, the length of the borehole Seneca drills is much longer, meaning each well is more productive (more gas flows out). No wonder those in the industry call shale fracking a miracle. Those who say shale drilling “won’t last, wells will run dry before you say Bob’s your uncle” are either willfully ignorant of the facts–or just plain lying. Here’s a look behind the scenes at dramatically improved Seneca…
Read More “Seneca Resources – Now Drilling 2X Wells in Same Amount of Time”
Accidents | Energy Companies | Health Impacts | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Did Range Resources Cover-Up Spill at Well Site in PA?
December 13, 2013December 13, 2013

Here we go again. A lawsuit has been filed against Range Resources in Amwell Township (Washington County), PA by a group of neighbors close to the Yeager well drilled by Range with claims that they were “sickened” (no word on how) by drilling at the well site. The big news is that there was an alleged spill at the drill site in 2010 (three years ago!) and that the spill was “covered up” and not properly reported by Range. A juicy rumor like that is all PA Rep. Jesse “fake online ID” White needed to demand that state Attorney General Kathleen Kane (an anti-driller) and a host of other government officials should investigate this forthwith. Jesse, you may recall, was caught red-handed using fake online IDs to impersonate and slander his own pro-drilling constituents. He still hasn’t had the decency to resign and the Democrat Party in PA hasn’t had the decency to remove him from office. A new low in PA politics.

Here’s the rumor about a three year-old spill that may or may not have happened and the dreaded cover-up by the evil villain, ~~Snidely Whiplash~~ Range Resources (sarcasm intended):
Read More “Did Range Resources Cover-Up Spill at Well Site in PA?”
Anti-Drilling/Fossil Fuel | Energy Companies | Erie County (NY) | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Seneca Resources

Erie County, NY Falls for the FWW Lie, Bans Fracking & Road Salt
December 13, 2013December 13, 2013

On Monday MDN told you about an eminent vote in western NY to ban fracking (see Erie County (Buffalo) NY to Vote on “Near-Ban” of Fracking). Yesterday, legislators for Erie County, NY fell into the trap set by the odious Food & Water Watch–legislators voted 9-2 to ban the use of road salt and dust suppressant safely manufactured from brine water that comes from oil and gas drilling. They also voted to deny taxpayers in Erie County the right to profit from drilling on county-owned land, when and if it ever comes to the county.

Right at the front of the hit parade gloating was FWW agitator, er, “organizer” Rita Yelda, who continues to falsely slander fracking and the products made as a result of fracking, like deicer (road salt). We hope Erie County residents enjoy paying for steep legal fees when this illegal law is challenged next year by Buffalo-based National Fuel (Seneca Resources)…
Read More “Erie County, NY Falls for the FWW Lie, Bans Fracking & Road Salt”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Ritchie County | Tyler County | Utica Shale | Washington County (OH) | West Virginia

Magnum Hunter 2014 CapEx: Utica/Marcellus
December 13, 2013December 13, 2013

In our season of 2014 guidance statements, Magnum Hunter Resources has just issued theirs. And what do we find when we open this particular Christmas present? The company will spend $400 million on capital expenditure projects in 2014, and the vast majority of it will go to the Utica and Marcellus Shale. Magnum Hunter plans to lease more acreage in the Marcellus/Utica, increase drilling rigs from two to three, and build out more pipelines in the northeast too. The Ohio Utica is a particular focus for Magnum Hunter in 2014.

Here is their 2014 blueprint, including which counties in OH and WV will see drilling action from Magnum Hunter in 2014:
Read More “Magnum Hunter 2014 CapEx: Utica/Marcellus”
Energy Companies | Exxon Mobil | Industrywide Issues | Research

ExxonMobil Annual Energy Report: NatGas Fastest Growing Fuel
December 13, 2013December 13, 2013

Understanding the global energy picture is helpful so we know where the shale energy piece “fits” in that picture. Each year ExxonMobil prepares an annual energy outlook. Yesterday they released the 2014 ExxonMobil Outlook for Energy: A View to 2040 report (full copy embedded below). Some interesting tidbits from the report: ExxonMobil says global energy demand will be 35% higher in 2040 than it was in 2010. Not surprisingly, they figure 60% of the world’s energy needs for the foreseeable future (until 2040) will be met by oil and natural gas, although renewables continue to grow.

Something else they note of great interest to MDN readers: “Natural gas will continue to be the fastest-growing major fuel source as demand increases by about 65 percent. Natural gas is projected to account for more than one quarter of all global energy needs by 2040 and it is expected to overtake coal as the largest source of electricity.” Here’s ExxonMobil’s press release announcing some of the key findings in this year’s report, followed by a full copy of the report:
Read More “ExxonMobil Annual Energy Report: NatGas Fastest Growing Fuel”
Energy Companies | Pennsylvania | Susquehanna County | WPX Energy

WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp
December 12, 2013December 11, 2013

Is Franklin Township in Susquehanna County, PA the new Dimock? Let us explain. You may recall that 17 families in rural Dimock, PA claimed that nearby natural gas drilling by Cabot Oil & Gas led to water well contamination from methane (natural gas) and/or fracking chemicals. The history of Dimock is well-established on this blog and in numerous other places. It was made famous by Josh Fox and his Gasland fictional movies. No one seriously believes the water in Dimock was contaminated with fracking chemicals because it’s never happened–anywhere. Not once. Methane, on the other hand, is a different matter. It can and does migrate–sometimes.

To this day Cabot disputes that their drilling led to methane contamination of Dimock water wells. The PA DEP investigated and said it did. The case is now closed on Dimock (see Cabot Buys Second Dimock, PA Property on Carter Road). One of the more theatrical aspects of the Dimock story was when Cabot removed DEP-ordered water tanks, called water buffaloes, from homes that refused to allow Cabot to install DEP-ordered methane filtration systems. Some of the families, like Craig and Julie Sautner, were suing Cabot for big bucks and didn’t want their water supply fixed. When Cabot came to remove the water buffaloes, it was a media circus complete with celebrities bleating on camera. In some respects, a town about 15 miles from Dimock–Franklin Township–is turning into the same media circus. Different driller, different families, same issue of removing water buffaloes…
Read More “WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp”