Energy Companies

Bradford County | Chief Oil & Gas | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Greene County (PA) | Lease & Royalty Payments | Pennsylvania | Susquehanna County

PA’s Top 10 Marcellus Shale Wells – Full Details
October 14, 2013October 14, 2013

Who doesn’t like a Top 10? We have one for you: What are the Top 10 producing Marcellus Shale wells in Pennsylvania? Would it surprise you to learn that 8 of the top 10 wells are found in a single PA county, drilled by the same driller?

Here’s the Top 10 PA Marcellus Well List, complete with the name of well, county, driller, estimated earnings per day and estimated royalties paid per day:
Read More “PA’s Top 10 Marcellus Shale Wells – Full Details”
CBM Ohio | Energy Companies | Harrison County | Lease & Royalty Payments | Ohio | Utica Shale

Harrison County, OH Leases 357 Acres to CBM Ohio for $5K/19%
October 11, 2013October 11, 2013

CBM Ohio, a company that until now has concentrated on producing coalbed methane (hence the name), is venturing into producing natural gas from the Utica Shale.

CBM’s first Utica foray comes in leasing 357 acres of county-owned land in Harrison County, OH. On Wednesday, Harrison County officials signed a lease with CBM for $5,000 per acre signing bonus and 19% royalties…
Read More “Harrison County, OH Leases 357 Acres to CBM Ohio for $5K/19%”
Antero Resources | Energy Companies

Antero’s Stock Climbs 18% on First Day of Trading
October 11, 2013October 11, 2013

The news continues to be good for Antero Resources, one of the biggest drillers in the Marcellus Shale that went public two days ago raising a boatload of money (see Antero’s IPO Fetches $1.57B, Company Valued at $11B!). In the first full day of trading (yesterday), Antero’s stock price just kept going up and up and up…
Read More “Antero’s Stock Climbs 18% on First Day of Trading”
American Energy Partners | American Energy Utica | Energy Companies | Ohio | Statewide OH | Utica Shale

McClendon Gets a Little Help ($1.7B) from His Friends in OH Utica
October 10, 2013October 10, 2013

After the mass(acre) firings at Chesapeake Energy earlier this week (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day), we expect there may be a line out of the door at the Oklahoma City-based American Energy Partners (AEP), a company founded by former Chesapeake CEO, Aubrey McClendon–who was fired from Chesapeake earlier this year. Fired Chesapeake employees may have good reason to head on over to AEP HQ.

Yesterday McClendon announced AEP has raised $1.7 billion and plans to use that money this year to (a) snap up 110,000+ acres in the OH Utica, and (b) begin drilling on that acreage. He even has deals set up with midstream companies for gathering and processing. The details from McClendon and AEP (cue music to “With a Little Help from my Friends” by the Beatles):
Read More “McClendon Gets a Little Help ($1.7B) from His Friends in OH Utica”
Chesapeake Energy | Energy Companies

OK Gov. Fallin Weighs in on Chesapeake Energy Mass Firings
October 10, 2013October 10, 2013

Yesterday’s axing of 800 Chesapeake Energy employees nationwide by newly appointed CEO Doug Lawler is still reverberating throughout the industry (see The Great Chesapeake Massacre: Lawler Fires 800 People in One Day).

Of the 800 fired, 640 of them worked at Chessy’s headquarters in Oklahoma City, OK. When 640 people lose their jobs in a single city (heck, in a single state), it’s a really big deal–big enough that the firings rated a statement from Oklahoma Gov. Mary Fallin, who had this to say:
Read More “OK Gov. Fallin Weighs in on Chesapeake Energy Mass Firings”
Energy Companies | Lario Oil and Gas | Ohio | Portage County | Trumbull County | Utica Shale

Tracker Lario Utica LLC Looks to Expand in Eastern OH
October 10, 2013October 10, 2013

Back in January, MDN told you what precious little we knew about Kansas-based driller Lario Oil & Gas and their foray into the OH Utica Shale (see New Driller Enters Eastern Ohio’s Utica Shale). We now have a teeny tiny little bit more news about Lario, now flying under the name Tracker Lario Utica, and about their Utica drilling efforts.

Lario now has a partner (Tracker Resource) and is looking to add to their 25,000 acre position–previously purchased from Chesapeake and EnerVest–in eastern OH:

Read More “Tracker Lario Utica LLC Looks to Expand in Eastern OH”
Antero Resources | Energy Companies

Antero’s IPO Fetches $1.57B, Company Valued at $11B!
October 10, 2013October 10, 2013

MDN told you a few weeks ago that Antero Resources, a privately-owned (and major) driller in both the Marcellus and Utica Shale, would soon float an initial public offering (IPO)–or in the parlance of the financial industry, they would soon “go public” (see Antero Resources Offers 30M Shares of Stock in IPO). Today is the day that Antero goes public and begins trading under ticker symbol AR.N. Yesterday they floated the IPO shares and the company got even more money than they had hoped for–raking in $1.57 billion (they wanted $1.4 billion).

Because of the really good IPO, the company begins its public life with a market valuation of $11 billion–with plenty of borrowing power to finance their many drilling projects in the Marcellus/Utica…
Read More “Antero’s IPO Fetches $1.57B, Company Valued at $11B!”
Chesapeake Energy | Energy Companies

The Great Chesapeake Massacre: Lawler Fires 800 People in One Day
October 9, 2013October 9, 2013

Doug Lawler, Chesapeake Energy’s new CEO–brought over from Anadarko Petroleum after Chessy board member and corporate raider Carl Icahn booted Aubrey McClendon to the curb–says he’s now done swinging the ax at the once-great natural gas driller. And boy did he end his ax-swinging with a bang–he must be exhausted. Yesterday Lawler fired another 800 people companywide, in addition to the ones already let go in his recent firing sprees (see Chesapeake’s Lawler Continues to Swing the Ax – More VPs Gone and God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?). Yesterday was more like a massacre than a mass firing. We seriously wonder how long Lawler will last after inflicting so much psychological (and real) damage on the company. Is he just getting the company ready for sale at his master’s bidding–so Icahn can add a few more zeros to his already robust bank account?

Some 640 of the 800 who were fired yesterday worked at Chessy’s Oklahoma City headquarters (is there anyone left to turn the lights out?). Twenty of the fired were Pennsylvania employees, on top of the dozen or more PA employees already let go a few months ago. No word on how many got the ax in OH or WV. However, the total body count now stands at around 1,200 since the beginning of the year. That’s 1,200 people out of work thanks to Carl Icahn and Doug Lawler. Here’s the bloody details…
Read More “The Great Chesapeake Massacre: Lawler Fires 800 People in One Day”
Energy Companies | Talisman Energy

Carl Icahn Snaps Up 6% of His Next E&P Victim: Talisman Energy
October 9, 2013October 9, 2013

Now that Carl Icahn has a toady in place to prep Chesapeake Energy for sale or greater things (we’re not sure which, see today’s story about the mass(acre) firings at Chesapeake), Icahn is already growing restless again. Apparently the wealth of the entire world would not be enough for Lord Icahn, so he’s out on the prowl–and what has he found? That’s right, another drilling company with operations in the Marcellus Shale: Canadian-based Talisman Energy (with 208,000 net acres leased, a number of wells drilled in the Marcellus).

Unfortunately for Talisman, Icahn now has his claws in the company, buying up nearly 6% of the company–more than enough to throw his weight around. Like a cat playing with a mouse, Icahn used Twitter to send a signal (threat?) to the company: “May have conversations with mgmt re strategic alternatives, board seats, etc.” If we were CEO Hal Kvisle, we would be very worried…
Read More “Carl Icahn Snaps Up 6% of His Next E&P Victim: Talisman Energy”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Litigation | Pennsylvania

Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner
October 8, 2013October 8, 2013

This is not the kind of story we enjoy sharing with you. Hilcorp, a major driller in the Utica and Marcellus Shale, has decided to take what we consider “the low road” and is using a 1961 Pennsylvania law to sue a landowner to allow them to drill under their property. It’s called “forced pooling,” “compulsory integration,” and a variety of other terms. MDN does not support it. Our argument is simple: My neighbor should not have the right to tell me I can’t drill on and under my land, and I should not have the right to force it on my neighbor if they don’t want it. We believe it’s the only defensible position in the drilling debate.

Regardless, Hilcorp has moved forward with a legal action against a landowner in Lawrence County, PA who owns just 14.6 acres in a drilling unit leased by Hilcorp–and that 14.6 acres apparently prevents Hilcorp from drilling. So off to court they go…
Read More “Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Dow Disingenously Tells Shell to Forget About a PA Cracker Plant
October 8, 2013October 8, 2013

Manufacturing and labor leaders held a confab yesterday in Pittsburgh to discuss jobs, the economy, and how the Marcellus is lifting both in southwestern Pennsylvania (see our companion story today). One of the speakers at yesterday’s meeting was Peter Molinaro, vice president and senior advisor on government affairs for The Dow Chemical Co. One of Dow Chemical’s chief rivals and competitors is Shell Chemical. Shell, as MDN readers are well aware, is currently conducting a multi-year evaluation of whether or not to build a regional ethane cracker plant in Beaver County, PA, outside Pittsburgh about 30 miles.

It probably won’t surprise you that Dow’s Molinaro said at yesterday’s meeting that PA probably doesn’t need a cracker plant after all. Are Molinaro’s comments about a PA cracker wise and measured counsel from an industry participant who has a feel for the economics of U.S. manufacturing and what it truly needs? Or are his comments trash-talking a competitor in hopes of scuttling a deal and eliminating competition so more ethane will be pipelined to the Gulf–where Dow’s cracker plants are located? You decide…
Read More “Dow Disingenously Tells Shell to Forget About a PA Cracker Plant”
Carrizo Oil & Gas | Energy Companies | Ohio | Statewide OH | Utica Shale

Carrizo’s New Drilling Strategy: Closer Well Spacing
October 7, 2013October 7, 2013

An analysis by brokerage firm Sterne Agee turns up an interesting strategy change by Carrizo Oil & Gas. Carrizo is a driller in the Utica Shale. They also have active drilling in the Eagle Ford “oily” play (in Texas).

The interesting change-up in their strategy? In the Eagle Ford Carrizo is experimenting with well spacing. Currently the company spaces wells on 105-acre sections. But lately they’re trying it on 80-acre sections, which allows them to place more wells on their leased acreage. Will they use the same strategy in the Utica?…
Read More “Carrizo’s New Drilling Strategy: Closer Well Spacing”
American Energy Partners | Carroll County | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Aubrey Leases More Land for Drilling — in the Northern Utica!
October 7, 2013October 7, 2013

The puzzle pieces continue to fall into place with respect to the deals being done by former Chesapeake Energy CEO Aubrey McClendon in the Utica Shale. Last week MDN told you about a joint venture between McClendon’s new company, American Energy, and Red Hill Development, to lease land for drilling in southeastern Ohio–counties like Guernsey and Harrison (see McClendon’s Utica Company Does JV with OH Driller, Drilling Soon). We now know about a second joint venture–this one with Great River Energy–a new production company formed through a partnership between McClendon’s American Energy and Texas firm Orange Energy Consultants.

The surprise about this new jv? They’re leasing land in Columbiana and Carroll counties, north of what is thought to be the “sweet spot” in the Utica wet gas area. Looks like Aubrey just can’t stay away from the northern Utica!…
Read More “Aubrey Leases More Land for Drilling — in the Northern Utica!”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

The Cabot O&G Marcellus Rocketship – To the Moon!
October 4, 2013October 4, 2013

Cabot Oil & Gas, one of our favorite Marcellus drillers, continues to amaze and astound just about everyone. Last Friday (a week ago) the company issued a new “guidance” or “this is our best, educated guess” as to how much natural gas production the company will end up producing for 2013, and how much they believe it will grow in 2014. Given Cabot is already the number one natural gas producer in PA and the first member of what MDN calls the “billion cubic feet per day” club (see Who’s a Member of the Marcellus “1 Bcf/d” Club?), it’s amazing that in 2014 they predict production will be up another 30-50% over this year. Wow!

Something just as startling and no doubt the envy of all their competitors, Cabot CEO Dan Dinges tips their hand as to what the breakeven price is at which the company starts to make money. It’s a LOT lower than even we thought is was…
Read More “The Cabot O&G Marcellus Rocketship – To the Moon!”
Energy Companies | Trans Energy | Tyler County | West Virginia

Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?
October 3, 2013October 3, 2013

Yesterday Trans Energy, a pure play driller focused on the Marcellus Shale (in West Virginia) announced they’re selling off their holdings in Tyler County, WV so they can concentrate on their holdings and drilling operations in Marshall, Wetzel and Marion counties instead. The deal is for 1,163 acres, two well pad sites and one uncompleted Marcellus Shale well. Trans Energy is getting $11.2 million for the transaction.

The announcement from Trans Energy does not identify who is doing the buying, but MDN has what we consider a pretty solid guess…
Read More “Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?”
East Resources | Energy Companies | Shell | SWEPI

Russian Spinmeisters Talk Down American Shale, Makes Us Laugh
October 3, 2013October 3, 2013

Russia hates the American shale revolution because it threatens their worldwide dominance in natural gas, and it threatens their ability to threaten others with it. Vlad Putin has long poo-pooed our shale reserves as nothing more than a flash in the pan. So we found it amusing to read the story (below) from the Voice of Russia Radio network that tries to spin Shell’s recent exit from some of its holdings into a story about oil and gas companies are “losing interest” in American shale. Yeah right! We had to pick ourselves up off the floor after laughing so hard.

Uh, VOR, have you ever heard of the wholly-owned Shell subsidiary called SWEPI? It stands for Shell Western Exploration and Production Inc. Oh, and East Resources? Yeah, Shell bought them. Shell now owns 850,000 acres in the Marcellus Shale play–#2 behind Chesapeake’s 1.8 million acres. So please, tell us again how Shell is abandoning American shale plays–we need another good laugh!…
Read More “Russian Spinmeisters Talk Down American Shale, Makes Us Laugh”