Energy Companies

Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Litigation | Mercer County | Pennsylvania

Mercer County Landowners Suing Halcon Get Small Victory
December 12, 2013December 11, 2013

Last fall Halcon Resources signed letters of intent with landowners in Mercer County, PA to lease some 60,000 acres for drilling, via CX Energy (Co-eXprise). In September 2012 Halcon called a meeting with landowners and told them they would only proceed with leasing about half of the acreage (see Halcon Says No Drilling for Half of Mercer County Landowners). Needless to say the half that were jilted didn’t take it well. In fact, they felt defrauded by Halcon and filed a class action lawsuit in federal court against Halcon.

The U.S. Court of Appeals Third Circuit has just passed the case (“remanded” it) back to a Pennsylvania trial court, which is a small victory for the landowners. How so? Well, it’s complicated, but we’ll do our best to explain it…
Read More “Mercer County Landowners Suing Halcon Get Small Victory”
Energy Companies | Ohio | PDC Energy | Statewide OH | Statewide WV | Taylor County | Utica Shale | West Virginia

PDC Energy to End Marcellus Drilling in 2014, Continue in Utica
December 11, 2013December 11, 2013

It’s the “Get out an update on what we plan to do in 2014” time of year. Doesn’t exactly roll off the tongue like “It’s the most wonderful time of the year!” End of year is not only about holidays but also about telling investors what they can expect next year–how a company plans to make money and provide a good return. Even though these statements are sometimes routine and dry, often you find interesting details when you pick through them. Like yesterday’s 2014 guidance statement from PDC Energy, a driller in both the Marcellus and Utica Shale.

In a low-key but to us surprising announcement, PDC’s statement says they will suspend drilling in the Marcellus in 2014. They plan to finish drilling four wells already under way in Taylor County, WV and then not drill any more Marcellus wells, but instead concentrate their time and effort on the Utica Shale and on Colorado’s Wattenberg Field. For those interested in Marcellus and Utica drilling, reading these updates is anything but dry! Take time to look over PDC’s plans for 2014, particularly their plans for the Utica…
Read More “PDC Energy to End Marcellus Drilling in 2014, Continue in Utica”
Energy Companies | Pennsylvania | Rice Energy | Washington County

Impending Rice Energy IPO Creating a Buzz
December 11, 2013December 11, 2013

MDN has known–well, suspected–since October that Rice Energy would soon be going public and that an initial public offering of stock (IPO) would value the company as much as $2.5 billion (see Rice Energy Rumored IPO – Dan Rice Gets Last Laugh). So when we reported yesterday that Alpha Natural Resources was selling its 50% joint venture stake to Rice for $300 million ($200 million of it in Rice stock when it goes public), we didn’t think much of it (see Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy).

Apparently not everyone knew about Rice going public and the news has hit like a thunderclap. Here’s an example, along with an estimate of when shares in the IPO will be offered:
Read More “Impending Rice Energy IPO Creating a Buzz”
Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Sullivan County | Susquehanna County | Tioga County (PA) | Wyoming County (PA)

Southwestern Energy’s Board Changes, Marcellus Plans for 2014
December 11, 2013December 11, 2013

Some fairly big news from one of the Marcellus Shale’s largest drillers–Southwestern Energy. In a flurry of announcements issued yesterday, we learn that Southwestern’s President & CEO, Steve Mueller, will take over as Chairman of the Board next May when current Chairman Harold Korell retires. Mueller plans to keep the title of CEO but apparently he will shed the title of President, so that begs the question, who will become Southwestern’s new president next year? Interestingly (perhaps related?) Southwestern also announced yesterday the promotion of Jeffrey Sherrick to the position of Executive Vice President for Corporate Development. Hmmm.

In addition to personnel announcements, Southwestern issued a guidance statement about their plans for capital spending in 2014. The statement indicates Marcellus production will increase by a whopping 60% next year. Southwestern’s estimated Marcellus production for 2013 is 148-149 billion cubic feet (Bcf). Next year they expect it will be 244-249 Bcf based on superb well performance in Bradford, Lycoming and Susquehanna counties. Southwestern boasts that one of their Susquehanna County wells achieved an initial production of 32 million cubic feet per day! In 2014 Southwestern plans to begin drilling in three additional northeastern PA counties…
Read More “Southwestern Energy’s Board Changes, Marcellus Plans for 2014”
Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Trumbull County

Halcon Proposes 14-Mile Pipeline from Vienna to Lordstown, OH
December 11, 2013December 11, 2013

Halcon Resources has been pretty tightfisted when it comes to spending money on leases for drilling–and now, perhaps–for pipelines as well. More than a year ago MDN told you about a landowner group that had formed in the Lordstown, OH area that hoped to negotiate new leases. The landowners were bound under 20-50 year-old leases purchased by Halcon that never envisioned shale drilling. Halcon said they wanted to work with landowners but stopped short of agreeing to renegotiate the leases (see Halcon Resources Responds to Lordstown, OH Landowners Group).

Halcon not only drills wells, they also have a midstream (pipeline) division to connect them. Halcon even stores and ships oil and gas–they’re building a $70 million storage and railroad transloading facility in Lordstown (see Halcon Resources Plans $70M Oil Terminal in Lordstown, OH). As part of the new storage facility, Halcon wants to run a 14-mile pipeline from Vienna to Lordstown. The problem, according to some communities along the route, is that Halcon doesn’t want to pay all that much to install a permanent pipeline…
Read More “Halcon Proposes 14-Mile Pipeline from Vienna to Lordstown, OH”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy Beefs Up Management Team for OH Utica
December 11, 2013December 11, 2013

Gulfport Energy may be based in Oklahoma City, OK, but their heart (and most of their focus) is in Ohio–in the Utica Shale. Gulfport is one of the premier Utica drillers with some of the most impressive wells drilled to date (see Gulfport’s New Record-Breaking Well in Belmont Cnty – 30.3 Mmcf/d). In keeping with their laser focus on the Utica, Gulfport announced yesterday a bunch of new hires and promotions–all of them focused on the Utica Shale.

At the top of the hit parade is a brand new Chief Operating Officer (COO) for the Utica–Ross Kirtley–who was previously a VP with Sandridge Energy. Robert Jones was appointed VP of drilling for Ohio, Mark Malone was appointed VP of operations for Ohio, and Ty Peck was appointed Managing Director of Midstream Operations. Certainly seems like a pretty major restructuring on the part of Gulfport as they prepare to do more great things in the OH Utica. Here’s the press release with details…
Read More “Gulfport Energy Beefs Up Management Team for OH Utica”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Oil & Gas & The Marcellus – An “Unstoppable” Combination
December 10, 2013

Cabot Oil & Gas continues to exceed expectations and, well, impress just about everybody! Yesterday Cabot issued an operations update. Among the highlights: They’ve just completed a 10-well pad in Susquehanna County (dry gas portion of the Marcellus). Calling it, “the new standard for operational efficiencies and technological advancement,” Cabot said the 10-well pad was completed with 170 frac stages and had a combined peak production rate of a huge 201 million cubic feet (Mmcf) per day. That’s an average of 20.1 Mmcf/d per well for all 10 wells! This is exciting stuff folks.

In addition to the excellent Marcellus news, Cabot announced they’ve sold more of their mid-continent “non-core” assets, bringing the total to $325 million worth of non-core assets this year. A good share of that money is being invested in the Marcellus. Below we have the full Cabot press release, the Cabot investor slide deck (with some great charts and maps), and energy analyst Robert Zeit’s key takeaways from yesterday’s update…
Read More “Cabot Oil & Gas & The Marcellus – An “Unstoppable” Combination”
CONSOL Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Statewide WV | West Virginia

CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too
December 10, 2013December 10, 2013

MDN brought you today’s CONSOL press announcement that they have closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million (see separate story today). Not mentioned in the CONSOL announcement is the deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

Here’s the “complimentary/competing” press announcement issued today from Dominion. Their side of the story, if you will…
Read More “CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too”
Barbour County | CONSOL Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide WV | Washington County | West Virginia

CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report
December 10, 2013December 10, 2013

CONSOL Energy issued a press release today updating their Marcellus Shale well results from wells drilled in Washington County, PA. In addition to PA, CONSOL owns leases for and is actively drilling in the West Virginia Marcellus area–most of it in the “wet gas” (natural gas liquids) area of the Marcellus. The update says they just completed their first pad in Barbour County, WV, a pad with six wells on it.

The big news in today’s announcement: CONSOL has just purchased another 90,000 acres of leases in WV–from Dominion Resources–for $190 million ($2,111 per acre). The deal will allow CONSOL to not only drill in the Marcellus layer, but also the Upper Devonian shale layer as well. CONSOL is one of the few drillers (so far) targeting the Upper Denonian (see MDN’s Upper Devonian category for stories about who else is targeting that layer)…
Read More “CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report”
Energy Companies | Greene County (PA) | Pennsylvania | Rice Energy

Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy
December 10, 2013December 10, 2013

Alpha Natural Resources, a coal company, formed a 50/50 joint venture with Rice Energy in 2010 to drill Marcellus Shale gas wells in Greene County, PA. Yesterday Alpha announced they’re bailing out and selling their 50% stake to Rice Energy for $300 million. The terms are Alpha gets $100 million in cold, hard cash now, and stock in Rice Energy once Rice goes public.

Yesterday’s announcement with the details:
Read More “Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy”
Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Belmont County, OH Waiting for $3M Lease Check from Rice Energy
December 10, 2013December 10, 2013

In early October MDN told you Rice Energy had cut a deal with Belmont County to pay the county a $7,500 per acre signing bonus, more than the $5,900 per acre it promised to private landowners in the area (see Rice Pays Belmont County Higher Signing Bonus than Landowners). The lower per acre no doubt rankled some landowners–but many of them already have their money. So far, the county does not.

When will Belmont County get its $3 million check from Rice Energy? Because they really need it…
Read More “Belmont County, OH Waiting for $3M Lease Check from Rice Energy”
Allegheny County | Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Washington County Seeks Proposals to Drill Under Mingo Creek Park
December 9, 2013December 9, 2013

A few weeks ago the Allegheny County legislature voted down a proposed ban on drilling under county parks 9-2 (see Allegheny County (PA) Council Votes Down Drill Ban for Parks). In the end, even though the Allegheny County legislature is heavily Democrat, they abandoned their fellow Democrats. The money from leasing is so good, and the risk is so low, even the left-leaning Allegheny County legislature can’t ignore it.

It seems that neighboring Washington County, PA also thinks drilling under county parks is a good idea. Washington County commissioners are looking for proposals to drill under Mingo Creek Park. The same driller that’s interested in drilling under Deer Lakes Park in Allegheny County is also interested in drilling under Mingo Creek Park in Washington County: Range Resources…
Read More “Washington County Seeks Proposals to Drill Under Mingo Creek Park”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Odds in Favor of a PA Ethane Cracker Just Went WAY Up
December 6, 2013December 6, 2013

At the end of October, MDN told you about comments from Shell’s retiring CEO Peter Voser that stoked fears that the previously announced Pennsylvania ethane cracker plant they may build was in doubt (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). Voser said that Shell’s wishlist included three major projects: the ethane cracker in PA, a gas-to-liquids plant in Louisiana, and an LNG plant in Canada. At the time Voser said Shell cannot build all three projects and would need to make “hard choices.”

It looks like the choice has been made and it’s very good news for PA! Yesterday Shell announced they are nixing the gas-to-liquids project in Louisiana, which (MDN’s view) makes it much more likely the PA ethane cracker plant will go forward. Here’s Shell’s statement from yesterday:
Read More “Odds in Favor of a PA Ethane Cracker Just Went WAY Up”
Energy Companies | Talisman Energy

Carl Icahn’s Claws Go Deeper into Talisman – 2 New Board Members
December 4, 2013August 18, 2020

MDN recently told you the sad news that corporate raider Carl Ichan now has his claws in Marcellus driller Talisman Energy, just like he does at Chesapeake Energy (see Icahn Now Throwing His Weight Around at Talisman, Like Chesapeake).

We’re sorry to have to report the Icahn’s claws are now sunk in a lot further. Talisman announced on Monday they’ve caved in to Icahn’s pressure and have appointed two new board members that are Icahn lackeys, there to do their master’s bidding, which will no doubt include massive layoffs and selling pieces of the company so Icahn can turn a tidy profit on his stock when he flips it…
Read More “Carl Icahn’s Claws Go Deeper into Talisman – 2 New Board Members”
Energy Companies | Landowner Coalition News | Morgan County | Ohio | PDC Energy | Utica Shale

Morgan County, OH Looks to Join the Utica Shale Well Club
December 2, 2013December 2, 2013

So far Morgan County, OH (south of Muskingum County, west of Noble County) has been quiet with respect to Utica Shale drilling. We’ve heard nothing. However, in November, Petroleum Development Corporation (PDC) obtained three Utica Shale permits in Center Township, Morgan County. Depending on the results of those three wells, more may be on the way.

In addition to the first three Utica wells to be drilled in Morgan by PDC, another surprise (to MDN): There’s a landowner group in Morgan County we were not aware of–the Morgan County Landowner Group (MCLG)–which incorporated as a non-profit in 2012 and already has 60,000+ acres…
Read More “Morgan County, OH Looks to Join the Utica Shale Well Club”
Chief Oil & Gas | Clarion County | Electrical Generation | Energy Companies | Energy Services | Greene County (PA) | IMG Midstream | Industrywide Issues | Pennsylvania | Statewide WV | Susquehanna County | West Virginia | Wyoming County (PA)

4 Electric Plants Coming to NE PA, Powered by Marcellus Gas
November 27, 2013November 27, 2013

In August MDN told you the news that Chief Oil & Gas has struck up a deal with IMG Midstream (sort of misnamed, IMG is not a pipeline company) to provide IMG with Marcellus Shale gas to power several small regional, super efficient and low-polluting electric generation plants they plan to build in northeastern Pennsylvania (see Chief Strikes Deal to Provide Marcellus Gas for Electric Plants). We have good news: projects to build those plants are moving forward with all due speed.

We now know that there are four plants planned for Pennsylvania and one for West Virginia. We also know where those plants will be built…
Read More “4 Electric Plants Coming to NE PA, Powered by Marcellus Gas”