Energy Companies

Access Midstream Partners | Columbiana County | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | NGLs | Ohio | Processing Plants | Statewide OH | Utica Shale

M3’s Kensington, OH NGL Plant Now Live & Processing
July 30, 2013July 30, 2013

A new $400 million natural gas liquids (NGL) processing plant in Kensington (near Hanoverton, OH) has went online Sunday. The Utica East Ohio Midstream (UEO) plant, a joint venture owned by M3 Midstream, Access Midstream (formerly Chesapeake Energy) and EV Energy Partners, was originally supposed to be online in May. That date slipped. In June, MDN picked up on a bit of news that indicated the plant would go live “by the end of July” (see M3 Midstream’s Kensington, OH NGL Plant Launch Date Slips). The July rumored date proved correct.

Yesterday, M3 issued the following press release announcing that the UEO plant is now operating and processing NGLs. It is the first plant of its kind to go online in the Utica Shale:
Read More “M3’s Kensington, OH NGL Plant Now Live & Processing”
Antero Resources | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

Antero Resources: Proved Reserves Up 47% from December
July 30, 2013July 30, 2013

Major Marcellus Shale driller Antero Resources announced yesterday that their “proved reserves” are up a healthy 47% from the end of last year–to 6.3 trillion cubic feet equivalent. If you look at their 3P reserves–proved, probably and possible–the number is 27.7 trillion cubic feet. Keeping an eye on a company’s reserves is important to know how much gas they will likely produce. It’s a measure often used by stock analysts and investors, but it’s a metric worth minding for landowners too. The numbers indicate what Antero says is in the ground, how much of it is there, and how healthy the company’s balance sheet is likely to look in the coming next few years.

Antero’s announcement from yesterday, with details about what makes up the reserve number (methane, ethane, etc.):
Read More “Antero Resources: Proved Reserves Up 47% from December”
Beaver County | Chesapeake Energy | CONSOL Energy | Energy Companies | EQT Corp | Hancock County | Pennsylvania | Range Resources Corp | Rex Energy | Upper Devonian Shale | West Virginia

5th Upper Devonian Driller + Maps of Best UD Spots to Drill
July 29, 2013July 29, 2013

It seems as if “out of the blue” the Upper Devonian Shale (UD) has popped up on the radar screen–quite suddenly and in quite a big way. The Upper Devonian is located a few hundred feet above the Marcellus Shale layer in the northeastern U.S. Over the past few weeks, MDN has highlighted stories of drillers expanding their UD drilling programs–including CONSOL, Rex Energy, Range Resources and EQT Corporation (see EQT 4th Driller to Target Upper Devonian Shale Layer). Courtesy of a sharp MDN reader, we can add a fifth UD driller to the list: Chesapeake Energy. Todd Sigler reports that Chesapeake has drilled an Upper Devonian well in Hancock County, WV and has several Upper Devonian permits in extreme western Beaver County, PA.

Todd also pointed us to two excellent drilling presentations about the UD, one from Range Resources and one from Rex Energy, which we’ve embedded below. The Range presentation includes a good backgrounder on the UD and a great series of maps showing where the best places to drill in the UD can be found–currently–based on our knowledge and experience so far. The Range presentation also discusses how Range (and others) are adopting a “stacked play” strategy of drilling the Upper Devonian, Marcellus and Utica layers–all in the same well bore. How cool is that?!
Read More “5th Upper Devonian Driller + Maps of Best UD Spots to Drill”
Energy Companies | Ohio | Oxford Oil Company | Statewide OH | Upper Devonian Shale

Ohio Drillers Not So Excited About Upper Devonian Shale
July 29, 2013July 29, 2013

It seems some drillers have become excited about the Upper Devonian Shale in southwestern Pennsylvania and West Virginia (see today’s companion story: 5th Upper Devonian Driller + Maps of Best UD Spots to Drill). However, it also seems that the UD isn’t all peaches and cream–especially for drillers in eastern Ohio. Akron Beacon Journal reporter Bob Downing reports the UD in Ohio has so far been pretty lackluster.

Surprisingly, there have already been 125 UD wells drilled in Ohio over the past two years, most of them vertical-only wells. An update on UD drilling in Ohio:
Read More “Ohio Drillers Not So Excited About Upper Devonian Shale”
Cameron County | Elk County | Energy Companies | Forest County | Lycoming County | Pennsylvania | Seneca Resources | Statewide PA

Seneca Resources Production Up 67%, Now 1/3 Bcf/d in Marcellus
July 29, 2013July 29, 2013

Seneca Resources, the Marcellus Shale drilling subsidiary of National Fuel Gas Company, released their fiscal third quarter (everyone else’s second quarter) operating results today. And boy of boy, were they good results! Seneca reports their Marcellus Shale production was up 67% from the same quarter last year, due to newly drilled wells in Lycoming County, PA going online. Seneca’s total Marcellus production was 374 million cubic feet per day average–or one-third of a billion cubic feet per day. Cabot Oil & Gas and now EQT have both hit 1 Bcfe/d of production in the Marcellus (see EQT 2Q13: Welcome to the Marcellus “1 Bcf/d Club”). Seems like Seneca is well on its way to the 1 Bcfe/d milestone too.

Here’s the full report, including details for some of the newest wells they’ve drilled in Elk, Cameron and Forest counties, and details about their use of a drilling technique called reduced cluster spacing (“RCS”) design:
Read More “Seneca Resources Production Up 67%, Now 1/3 Bcf/d in Marcellus”
Energy Companies | EQT Corp

EQT 2Q13: Welcome to the Marcellus “1 Bcf/d Club”
July 26, 2013July 26, 2013

EQT has distinguished itself by becoming the second Marcellus Shale driller to join the “1 billion cubic feet per day club” in Marcellus Shale gas production. Cabot Oil & Gas was the first member (see Who’s a Member of the Marcellus “1 Bcf/d” Club?). EQT had a tremendous second quarter, as reported in their 2Q13 update issued yesterday. Marcellus production was up an astonishing 111% from 2Q12.

A few more facts and figures from yesterday’s update: in 2Q13, EQT started to drill (or “spud”) 41 Marcellus wells; they completed three Utica wells with one of them going online for sales of gas; and EQT spud eight Upper Devonian wells (completing four of them), with plans to drill up to 22 UD wells this year…
Read More “EQT 2Q13: Welcome to the Marcellus “1 Bcf/d Club””
Energy Companies | EQT Corp

EQT 4th Driller to Target Upper Devonian Shale Layer
July 26, 2013July 26, 2013

EQT has become the fourth Marcellus/Utica driller (that we’re aware of) to target the Upper Devonian Shale, a shale layer that sits a few hundred feet above the Marcellus Shale layer. The other three drillers are Rex Energy, Range Resources, and CONSOL Energy (see New Shale Layer Above the Marcellus Yields Positive Results). EQT already has eight Upper Devonian wells (four of them completed) with plans to drill up to 22 Upper Devonian wells this year, according to CEO David Porges on an investors call yesterday…
Read More “EQT 4th Driller to Target Upper Devonian Shale Layer”
Energy Companies | Hilcorp Energy | Mahoning County | Ohio | Utica Shale

Hilcorp Sets Sights on More Utica Drilling in Mahoning County, OH
July 26, 2013July 26, 2013

A quick update on Hilcorp’s Utica Shale drilling program and where they’ll next, courtesy the Youngstown Business Journal:
Read More “Hilcorp Sets Sights on More Utica Drilling in Mahoning County, OH”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot’s Marcellus Marketing Plan / Slidedeck
July 26, 2013July 26, 2013

As MDN pointed out yesterday, Cabot Oil & Gas continues to shine in Susquehanna County, PA’s Marcellus Shale, with production up 52% from 2012 for the second quarter (see Cabot Continues to Shine in Susquehanna County Marcellus). As part of their reporting this week, Cabot released a slide deck called “Marcellus Marketing Supplementary Materials.” We’ve embedded it below. There’s a very interesting pipeline map and several charts discussing the region’s capacity to move gas to market–well worth a glance if you have an interest in the Marcellus in northeastern PA.

A hat-tip to MDN reader and contributor Chris Acker for alerting us to these slides. Here they are:
Read More “Cabot’s Marcellus Marketing Plan / Slidedeck”
Energy Companies | Energy Services | Ethane | Industrywide Issues | MarkWest Energy | NGLs | Pipelines | Processing Plants | Range Resources Corp | Sunoco Logistics

Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant
July 25, 2013July 25, 2013

Every now and again you come across a big, fat gold nugget of news in a press release. That happened for MDN today when we read yesterday’s press release from Range Resources, innocently announcing their second quarter 2013 results (see today’s story about Range). The gold nugget? Range reports that on July 21st their first deliveries of ethane via the Mariner West pipeline were made to Sarnia, Ontario, Canada. This is the first time ethane has made it to a processing (cracker) plant.

The little nugget of gold from Range, the only Marcellus driller (so far) to sell ethane…
Read More “Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant”
Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources: Marcellus Will Provide 20-25% Growth “For Years”
July 25, 2013July 25, 2013

A few weeks ago Range Resources gave us a high level heads-up on second quarter results, and their results from the Marcellus were indeed very good (see Range Resources 2Q13: Production Up 27% Due to Marcellus). Yesterday, Range Released the full 2Q13 update–both financial and operational. The numbers are good (see the report below).

The huge news hidden in yesterday’s announcement: Range reports that on July 21st their first deliveries of ethane via the Mariner West pipeline were made to Sarnia, Ontario, Canada where the ethane will (presumably) be processed at the Corunna ethane cracker plant. Below are selected portions of the 2Q13 report from Range, relevant to their Marcellus drilling program, including a breakdown of how much it costs them to produce each Mmcf of gas…
Read More “Range Resources: Marcellus Will Provide 20-25% Growth “For Years””
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Continues to Shine in Susquehanna County Marcellus
July 25, 2013July 25, 2013

Cabot Oil & Gas continues to be a star performer in the northeast PA Marcellus Shale. Releasing their second quarter update yesterday, Cabot reports their natural gas production is up 52% from 2Q12. Meanwhile, they’ve now added a sixth drilling rig in Susquehanna County, PA. If memory serves, it was only a little over a year ago that Cabot was running just three rigs in Susquehanna County.

According to MDN sources, some farmers in Susquehanna County, PA are getting $10,000 per day in royalties. In addition to spreading manure, they’re now spreading an incredible amount of wealth around the county! Here’s select portions of the latest press releases from Cabot:
Read More “Cabot Continues to Shine in Susquehanna County Marcellus”
Belmont County | Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport 2Q13: Oil Production Down, NatGas & NGLs Way Up
July 24, 2013

Gulfport Energy issued its second quarter 2013 operations update yesterday. Among the highlights: The company produced less oil than a year ago after selling off its Permian wells and acreage to Diamondback, but they saw a dramatic increase in production of natural gas and natural gas liquids from a year ago. Gulfport’s natgas production was up 6.5X and liquids production more than doubled–up 2.3X from last year. The company also said they increased their Utica Shale acreage by an additional 8,000 acres–they now own 145,000 leased Utica acres.

Also in the update are production numbers for a series of new wells recently brought online–the McCort wells in Belmont County (Somerset Township), OH. The full 2Q13 Gulfport update:
Read More “Gulfport 2Q13: Oil Production Down, NatGas & NGLs Way Up”
Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Susquehanna County

Study Proves Fracking Didn’t Cause Methane in Dimock Water Wells
July 23, 2013July 23, 2013

A research study appears in the May-June 2013 issue of Groundwater, a peer-reviewed scientific journal, that completely debunks the notion that fracking was the cause of methane contamination in local water wells in Dimock, PA (as famously claimed by Josh Fox and Gasland). The article, titled “Evaluation of Methane Sources in Groundwater in Northeastern Pennsylvania” (full copy embedded below), has flown completely under the radar and has received, so far as we can tell, no coverage in the mainstream media. It likely hasn’t been been covered because (a) the findings don’t fit the media narrative that fracking contaminates water, and (b) the study’s lead author is the head geologist for Cabot Oil & Gas, the company accused of contaminating some Dimock water wells with methane from nearby drilling activity.

The study looks at test results for 1,701 water wells around Susquehanna County, PA (where Dimock is located), both close to and far from shale drilling. What does the cold, hard data show? Methane is everywhere in Susquehanna County groundwater–and it has been for hundreds of years. No wonder Susquehanna County is such a productive gas field for Cabot! The study finds that methane in water is more prevalent in certain locations like valleys. Perhaps most importantly–the study finds no correlation between shale drilling and the level of methane in water wells. There’s no more methane in water wells close to drilling than there is in wells far from it. Science is science, and this study cannot be discounted simply because the wizards at Cabot wrote the report…
Read More “Study Proves Fracking Didn’t Cause Methane in Dimock Water Wells”
Anadarko | Atlas Energy | Chesapeake Energy | Chevron | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Pennsylvania | Range Resources Corp | Shell | Statewide PA | Talisman Energy

PA’s Top 10 Marcellus Drillers Based on Number of Permits
July 22, 2013July 22, 2013

Who doesn’t love a Top 10 list? David Letterman has built a career on them. There are a lot of different ways to measure who the biggest drillers are in Pennsylvania–the Top 10 drillers. Recently, the Pittsburgh Business Times took a fresh stab at it. They counted how many shale gas wells have been permitted for drilling companies. It doesn’t mean the wells have been drilled yet, but you don’t spend big bucks on a permit to not drill. We can safely assume if it’s permitted, it either has been or soon will be drilled.

So who are the Top 10? The names of the drillers in the list may not surprise you, but we bet the number of permitted wells they have and their order in the list may surprise you…
Read More “PA’s Top 10 Marcellus Drillers Based on Number of Permits”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Susquehanna County Picnic 2013: A Great Time for All!
July 22, 2013July 23, 2013

Saturday in New York’s Southern Tier and Pennsylvania’s Northern Tier (the border between Broome County, NY and Susquehanna County, PA) was OK weather-wise. It was a bit overcast and threatened rain, ~~which is likely what kept the crowds a bit lower~~ at this year’s Cabot Oil & Gas annual picnic in Susquehanna County, PA. (UPDATE: They actually broke the record! See update below.) Still, from what MDN editor Jim Willis saw, it was a packed house with long lines for free hamburgers and hot dogs, free games with prizes, and lots of equipment to see and touch (see pictures below).

Equal parts county fair, picnic, carnival and trade show, each year Cabot sponsors a “community picnic” in Susquehanna County–the only county in Pennsylvania where Cabot drills for Marcellus Shale gas…
Read More “Cabot Susquehanna County Picnic 2013: A Great Time for All!”