Energy Companies

Eclipse Resources | Energy Companies | Utica Shale

Utica Driller Eclipse Resources Talking IPO in 2014
November 6, 2013November 6, 2013

MDN has written several stories in the past about a small but rapidly growing driller in the Utica Shale–Eclipse Resources. In June we told you that Eclipse, headquartered in State College, PA, bought out Oxford Oil, adding to their Utica acreage portfolio (see Eclipse Resources buys Oxford Oil, Adds Another 49K Utica Acres). Eclipse currently has over 90,000 acres leased in the Utica and another 20,000 acres leased in the Marcellus Shale–all of the acreage located in Ohio.

Seeing the very successful Antero Resources initial public stock offering (Antero’s market capitalization as of today is $14.35 billion!), Eclipse wants some of that IPO action too. CEO Benjamin Hulburt, no stranger to running oil & gas companies (he co-founded Rex Energy), says Eclipse is looking at an IPO in the middle of 2014…
Read More “Utica Driller Eclipse Resources Talking IPO in 2014”
Energy Companies | Pennsylvania | Susquehanna County | Talisman Energy

Talisman 3Q13: Marcellus Production Up 4%, Avg 443 Mmcf/d
November 6, 2013November 6, 2013

Talisman Energy released their third quarter financial and operations update today. Talisman, a Canadian company, is a major driller in the Marcellus Shale, among other plays both here and around the world. In this update, Talisman CEO Hal Kvisle gives a big thumbs up to the Marcellus. In his opening remarks he comments: “We are achieving excellent results in the Marcellus, sustaining gas production rates through production optimization and a modest drilling program.”

In this really, really, really long 3Q13 update, Talisman says both production and cash flow are up company-wide for the quarter, and drilling costs are down. We’ve extracted out the information from the update on Talisman’s Marcellus drilling program, which is really, really short–but enlightening nonetheless:
Read More “Talisman 3Q13: Marcellus Production Up 4%, Avg 443 Mmcf/d”
Accidents | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Wastewater | XTO

PA AG Pressures Judge to Step Aside in XTO Spill Case
November 5, 2013November 5, 2013

A quick update on the political persecution being shamefully conducted by Pennsylvania’s new Attorney General Kathleen Kane against XTO Energy (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Kane is attempting to turn a 3 year-old accidental spill into a criminal case–beyond imagination.

Kane continues to abuse her power. She has pressured the judge who would have heard the XTO case to recuse himself because he has a share/interest in a gas lease. The judge’s lease is not with XTO, but that’s not good enough for anti-drilling Kane. She wanted him gone–so he’s gone…
Read More “PA AG Pressures Judge to Step Aside in XTO Spill Case”
Energy Companies | Gulfport Energy | Utica Shale

An Update on Utica Shale’s #2 Driller – Gulfport Energy
November 5, 2013

As Gulfport Energy gets ready to release its third quarter update today, GuruFocus provides a helpful overview of Gulfport’s recent drilling and production, particularly in the Utica Shale which is now Gulfport’s number one producing play. Gulfport is the #2 driller in the Utica behind Chesapeake Energy.

We found this interesting and thought you might too…
Read More “An Update on Utica Shale’s #2 Driller – Gulfport Energy”
Carrizo Oil & Gas | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA | Utica Shale

Carrizo Down on Marcellus, Up on Utica and Other Wet/Oil Plays
November 5, 2013November 5, 2013

Carrizo Oil & Gas is a driller in both the Marcellus and Utica Shale, as well as several other non-northeast shale plays. Carrizo released their third quarter operations and financial update yesterday. Although Carrizo’s current drilling program is focused primarily in the Eagle Ford and the Niobrara, they continue to drill in the Marcellus (some). In 3Q13 Carrizo picked up an additional 5,900 net acres in the Utica Shale, increasing their acreage in the Utica to 21,700.

Carrizo isn’t so happy with the Marcellus right now because of low commodity prices for dry gas (methane). They’re more happy with the Utica because of wet gas production. Below are select (brief) sections from yesterday’s update relevant to the Marcellus/Utica:
Read More “Carrizo Down on Marcellus, Up on Utica and Other Wet/Oil Plays”
Energy Companies | Pennsylvania | Southwestern Energy | Statewide PA

Southwestern 3Q13: Marcellus Production Doubled from Last Year
November 5, 2013November 5, 2013

Last week Southwestern Energy released their third quarter operations and financial update. Southwestern is a large and important driller in the Marcellus Shale–particularly in northeastern Pennsylvania. They also have an active drilling program in several other shale plays. In the Marcellus, Southwestern’s production shot up 196% (nearly doubled!) over the same time last year. They now produce 600 million cubic feet per day (Mmcf/d) and predict they will be producing over 1 billion cubic feet per day by the end of 2015.

Here’s the beginning portion of the Southwestern update from last week, which includes details about their Marcellus drilling program:
Read More “Southwestern 3Q13: Marcellus Production Doubled from Last Year”
Energy Companies | Stone Energy

Stone Energy 3Q13: Drilling 30 Marcellus Wells, Testing UD
November 5, 2013November 5, 2013

Stone Energy is mostly an off-shore driller with a number of rigs and operations off the shores of the U.S. However, their one on-shore drilling program is in the Marcellus Shale. They’re also starting to drill test wells in the Upper Devonian (also in the northeast, same area, different shale layer).

Stone issued their third quarter 2013 update yesterday. Here are the mentions of Stone’s operations in the Marcellus and UD:
Read More “Stone Energy 3Q13: Drilling 30 Marcellus Wells, Testing UD”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?
November 1, 2013November 1, 2013

On an analyst call yesterday, Shell’s outgoing CEO Peter Voser stoked fears that Shell may be ready to pull the plug on the announced ethane cracker plant planned for Monaca, PA. According to Voser, the company will make “hard choices” over the next few quarters about which projects it will fund and build. Specifically, Voser said the company had previously announced three big projects: the ethane cracker in PA, a gas-to-liquids plant in Louisiana, and an LNG plant in Canada. He said Shell cannot build all three projects. Gulp.

Voser’s comments have led to speculation that the ethane cracker plant in PA will get the ax, especially with two ethane pipelines coming online by the end of this year, and two more mixed NGL pipelines coming online in the next few years (see our companion story today, “Midstream Knife Fight”). Just last week we highlighted a story from the Wall Street Journal and industry analyst Rusty Braziel which also cast doubt on the PA cracker plant (see WSJ Says PA Cracker Plant May Not Happen After All). Are things going south–literally and figuratively–for the Shell cracker? Yesterday’s comments from Voser:
Read More “Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?”
Energy Companies | Ohio | PDC Energy | Utica Shale | Washington County (OH)

PDC Energy 3Q13: “Excited” about Utica in Washington County, OH
November 1, 2013

PDC Energy, headquartered in Denver, CO, has drilling operations in both the Marcellus and Utica Shale region. In June of this year, PDC sold off “non-core” assets they owned in Colorado and said they would invest that money in drilling the Utica Shale (see PDC Energy Sells CO Assets, Will Use Money for Utica Drilling). In their third quarter update, issued yesterday, PDC is positively effusive about their first Utica Shale well in Washington County, OH. It is the first well they’ve drilled in their “southern Utica” acreage and judging by the results, they plan to drill many more in that area.

In addition to good tidings from the Utica, PDC announced they raised $276 million from floating a new stock offering. They were also listed in the Russell 2000 index. It’s been a busy three months for PDC. Relevant (Utica) portions of their 3Q13 update:
Read More “PDC Energy 3Q13: “Excited” about Utica in Washington County, OH”
Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus
October 31, 2013October 31, 2013

Range Resources, the very first driller to sink a well into the Marcellus, is also perhaps the biggest cheerleader and booster of the Marcellus. And why not? The Marcellus has been very good to Range.

Most of Range Resources’ wells and acreage is located in southwestern PA, in the “wet gas” area of the play. On a call with analysts yesterday discussing third quarter results, Range officials, including CEO Jeff Ventura, effused about the Marcellus, saying Range has enough acreage and opportunity in the Marcellus to allow them to continue drilling new wells for at least another 20 years. That is, they’ve hit the bull’s-eye (our words) in the Marcellus…
Read More “Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus”
Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess Officials Talks About the Utica on 3Q13 Earnings Call
October 31, 2013October 31, 2013

Yesterday the parade of third quarter earnings calls continued. One of them was held by Hess, continues to be a major player in the Utica Shale.

MDN has slogged through the transcript from yesterday’s call and selected out those portions where Hess officials talk about the Utica, their recent accomplishments and their plans going forward…
Read More “Hess Officials Talks About the Utica on 3Q13 Earnings Call”
Energy Companies | Ethane | Exporting | Hydraulic Fracturing | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Statewide PA | Washington County

Range Resources’ Top 10 Wet Gas Wells, New Company Presentation
October 30, 2013October 30, 2013

Yesterday Range Resources released their financial and operations update for third quarter 2013 (see our companion story from today). Nestled in that update is reference to a new company presentation released yesterday as well, available on the Range website. MDN downloaded it (full copy embedded below) and wow! What a presentation it is. This sucker is loaded with useful charts, maps, bullet points and more. Range has done the industry (and their investors) a great service with this presentation.

Below we will highlight some of our favorite “don’t miss it” slides from the presentation, so you know which ones to zero in on right away. However, the one slide many will want to view first is the list of Range’s Top 10 Liquids Rich (“wet gas”) wells. That slide lists the wells and their locations (hint: they’re all found in a single PA county), initial production levels, production mix (how much oil, NGLs, gas), lateral length, and number of frac stages. With lots of maps and lots of charts, here are some of our favorites, including the Top 10 Wells slide:
Read More “Range Resources’ Top 10 Wet Gas Wells, New Company Presentation”
Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA

Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%
October 30, 2013October 30, 2013

Range Resources, the heavyweight Marcellus driller that was the very first company to drill a Marcellus well (back in 2004), continues the flurry of third quarter updates with their own yesterday. Range reports that revenues (or cash flow) were up 29% vs one year ago, costs were down 12% vs one year ago, and the Marcellus was their date to the ball and they’re still dancing with her. They also report record production of 960 million cubic feet per day (Mmcf/d)–getting close the one billion cubic feet per day (Bcf/d) mark.

Range’s most interesting comments (to MDN) are about the Mariner West Project, an ethane pipeline that runs from the Marcellus all the way to Sarnia, Canada. Range is one of the main customers for Mariner West which is due to be “fully operational” in November. However, Range said in early September their first delivery of ethane had already reached Sarnia, which made us scratch our heads (see Sunoco Says Mariner West Opening Soon, but Range Already Using??). After reading Range’s statements below, we now understand that Sunoco Logistics has been testing the new pipeline and it will be fully up to speed sometime in November…
Read More “Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%”
Beck Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | Utica Shale

Beck Energy Sues OH Attorneys for Lease “Interference”
October 30, 2013October 30, 2013

An interesting court case that landowners in Monroe County, OH with old (30 year-old) non-Utica gas leases will be interested in following. Beck Energy holds many of those old leases (originally signed for an average $50/acre) which allows them to drill vertically into the Clinton sandstone for natural gas. However, the old leases prevent landowners from signing new leases (at much higher signing bonuses) to allow Utica Shale drilling. Apparently some enterprising attorneys have taken up the cause by shopping (i.e. advertising) for plaintiffs and Beck is none to happy about it. Beck has filed a lawsuit against the attorneys and their law firms to stop them from making mischief with “their” leases.

After reading the details of whose done what to whom (below), it seems to MDN no one will come out of this one smelling clean…
Read More “Beck Energy Sues OH Attorneys for Lease “Interference””
Access Midstream Partners | Energy Companies | Energy Services | EnerVest | Harrison County | Industrywide Issues | M3 Midstream | Ohio | Processing Plants | Utica East Ohio Midstream | Utica Shale

Gov. Kasich “Turns the Valves” at Scio Fractionation Plant
October 30, 2013October 30, 2013

MDN told you that Ohio Gov. John Kasich went foreigner-hunting on Monday and was glad to find no “foreigners” (i.e. out-of-state workers) lurking around the Hickory Bend processing plant in Mahoning County that he was visiting for a dedication ceremony (see OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). While he was in the general neighborhood, Gov. Kasich also slipped over to Harrison County on Monday to check out the Scio fractionation plant (now being called the Harrison Hub), to see if there were any foreigners hiding there. Nope! A banner day for Gov. Kasich!

The Scio plant, built by the Utica East Ohio Buckeye joint venture (M3 Midstream, Access Midstream and EnerVest) held a “turn the valves” dedication on Monday to take advantage of Kasich being in the area. Phase 2 of the plant went online in July adding an additional 45,000 barrels per day of NGL processing capacity. Phase 3 is now being build and due to go online in early 2014. Highlights from the Kasich visit and more details about the plant from UEO officials…
Read More “Gov. Kasich “Turns the Valves” at Scio Fractionation Plant”
CONSOL Energy | Economic Impact | Energy Companies | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling
October 29, 2013October 29, 2013

CONSOL Energy continues what seems to be its inevitable transformation from being a coal mining company to being a natural gas drilling company. The federal government (EPA) is killing the coal industry by killing electric power generating plants that run on coal with onerous new “pollution” standards. It is intentional–Obama’s EPA wants to kill coal. CONSOL is feeling the heat–losing more and more customers for their coal. And so CONSOL has announced they’re selling five more of their coal mines located in West Virginia and Pennsylvania and using the money to expand their natural gas drilling operation.

In fact, CONSOL says it plans to invest an eye-popping $24 billion in West Virginia and Pennsylvania natural gas drilling over the next 10 years. By comparison, MDN found in the most recent volume of the Marcellus and Utica Shale Databook that announced midstream infrastructure projects in the northeast add up to a $40 billion investment. CONSOL, a single driller, will spend more than half that amount on new drilling alone! These are truly staggering numbers and very good news for the states involved. Too bad New York (where MDN is located) is seeing NONE of this investment…
Read More “CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling”