Energy Companies

Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Otsego County | Regulation | Statewide NY | Tompkins County

NY Pro-Drillers File Final Briefs in Dryden/Middlefield Cases
January 10, 2014January 10, 2014

According to Tom West, lead attorney in the New York “Dryden” court case that seeks to overturn bad lower court decisions that allow towns to completely ban fracking, the “last word” has been now been filed by landowners and (in the case of West’s client), drillers like Norse Energy. West, via his blog site, announced two days ago that the final briefs with counter-arguments have been filed for both the Dryden and Middlefield cases (copies of both final briefs are embedded below). According to West, additional friend-of-the-court briefs (called amicus briefs) will still be filed, but until oral arguments are heard in a few months, this is the final word from our side of the isle. Interestingly, when you read through the two briefs, they each make slightly different arguments–perhaps increasing the odds that something will resonate with the justices.

Here’s what West says via his blog site about the filings:
Read More “NY Pro-Drillers File Final Briefs in Dryden/Middlefield Cases”
Energy Companies | EQT Corp | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Deal Done to Lease Washington County, PA Airport for Drilling
January 10, 2014January 10, 2014

MDN told you yesterday about an impending vote by Washington County, PA commissioners to lease portions of the county airport for drilling under (but not on) airport property (see Washington County, PA Airport Considers Offer to Lease). The vote was taken, and the deal was approved. In the end, it looks as though the county, which does not own the mineral rights for all 400 acres of airport property, does own the rights to at least 135 acres, which they leased for a signing bonus of $6,400 per acre and 18.25% royalties on any gas produced.

The taxpayers of Washington County should be happy that a check for $864,000 of “newfound money” is heading their way…
Read More “Deal Done to Lease Washington County, PA Airport for Drilling”
Energy Companies | WPX Energy

Shotgun Wedding: New Board Member Forced on WPX Energy
January 9, 2014January 9, 2014

Yesterday WPX Energy, the spin-off drilling company from midstream giant Williams Partners, announced the appointment of Karl Kurz to the board of directors. MDN previously told you that WPX is being jerked around by its second largest stockholder, Taconic Capital Advisors, which led to the firing of the WPX’s CEO (see CEO Shake-up Explained: Taconic Capital Jerking WPX’s Chain). It appears that Kurz, previously COO for Anadarko Petroleum, is Taconic’s toady on the board–there to do his masters’ bidding.

Here’s the interesting thing to MDN: Williams, WPX’s one-time parent that still has a major stake in WPX, was attacked by a Carl Ichan disciple at the same time WPX was attacked by Taconic–no coincidence if you ask us (see Bad News: Corporate Raiders Take Aim at Williams). Carl Icahn’s toady at Chesapeake Energy is it’s new CEO Doug Lawler–a one time executive at Anadarko (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day). Now we get a former Anadarko person on the board at WPX. See a trend here?…
Read More “Shotgun Wedding: New Board Member Forced on WPX Energy”
Energy Companies | EQT Corp | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Washington County, PA Airport Considers Offer to Lease
January 9, 2014January 9, 2014

Washington County, PA commissioners will vote today on a proposed lease of the county’s airport property–to allow shale drilling under (but not on top of) the property. According to the deal offered, the county would receive $6,400 per acre as a signing bonus and 18.25% royalties on any gas produced. It’s unclear how much of the 360 airport-owned acres will generate revenue for the county because when the county purchased the property some landowners retained mineral rights. However, the deal, if signed, is sure to generate a boatload (or planeload) of money for Washington County.

Here’s more details about the proposed offer, and which drillers (plural) are cooperating to do the drilling…
Read More “Washington County, PA Airport Considers Offer to Lease”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow
January 8, 2014January 8, 2014

Eureka Hunter, the wholly-owned midstream (pipeline) subsidiary of driller Magnum Hunter, published their month by month flow numbers yesterday for how much gas they pumped through their pipelines in West Virginia and Ohio during 2013. It was an impressive year for Eureka Hunter. The average daily flow or “throughput” in 2012 was 23,291 million Btus (or MMBtus), which equates to 23.3 million cubic feet per day (or MMcf/d). If the “average” well is producing, say, 3 MMcf/d, that’s the equivalent of having 8 wells connected to the pipeline. The average daily flow in 2013 was 83,828 MMBtus, or 83.4 MMcf/d, or 28 wells hooked up and flowing. That’s a 360% year over year increase–nearly quadruple the volume!

What the average doesn’t tell you, however, is that by the end of the year, Eureka Hunter’s pipeline flowed nearly 160,000 MMBtus, or 160 MMcf/d, which is production from an average 53 wells. They predict in 2014 the daily flow rate will hit 206,500 MMBtus. Somewhere between 40-50% of the gas they flow is from Triad Hunter, another Magnum Hunter subsidiary (sister company to Eureka Hunter). Below is the press release with Eureka Hunter’s monthly flow numbers. With our explanation above, you now know how to view it!…
Read More “Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow”
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”