Energy Companies

Accidents | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | XTO

XTO Pays Dearly for 2010 Wastewater Spill in Lycoming County, PA
July 19, 2013July 19, 2013

Yesterday, the federal Environmental Protection Agency (EPA) and U.S. Department of Justice announced a deal with XTO Energy to resolve what they say was a violation of the Clean Water Act in 2010 when XTO experienced a spill of fracking wastewater from a storage tank in Lycoming County, PA.

That spill is going to cost XTO dearly: a $100,000 fine, and another $20 million to craft a “comprehensive plan to improve wastewater management”…
Read More “XTO Pays Dearly for 2010 Wastewater Spill in Lycoming County, PA”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Some PA Landowners Mull Decision to Sue Chesapeake over Royalties
July 19, 2013July 19, 2013

Are you a landowner in Pennsylvania leased with Chesapeake Energy? And if you are, do you feel cheated with your royalty payments? If so, you may want to join what’s shaping up to be a class action lawsuit in PA against Chessy over what some claim are underpaid royalties.

Landowners are being pursued by a couple of Scranton-area lawyers working with a couple of out-of-state lawyers–from New York City–to go after Chesapeake on the issue of what they say are shorted royalty payments. Are these lawyers champions of the downtrodden, defending the rights of shafted landowners? Or the real estate equivalent of ambulance chasers? You decide…
Read More “Some PA Landowners Mull Decision to Sue Chesapeake over Royalties”
Antero Resources | Energy Companies

Antero Resources Expands Credit Line by $250M for More Drilling
July 17, 2013July 17, 2013

Antero Resources is a major Marcellus and Utica Shale driller, headquartered in Denver, CO. Last Friday, Antero announced they’ve upped their credit line with a banking syndicate by an additional $250 million (their full credit line is now $1.45 billion). They hint that they may expand their line of credit to the “full $1.75 billion borrowing base” in the future.

Here’s the announcement that Antero now has more cash to help with drilling in the Marcellus/Utica:
Read More “Antero Resources Expands Credit Line by $250M for More Drilling”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pipelines

EQT Sells Sunrise Pipeline Operation to Itself for $540M
July 17, 2013July 17, 2013

EQT, a major driller in the Marcellus and Utica Shale, as well as a midstream (pipeline) operator, just announced they will sell a major natural gas pipeline they own–the Sunrise Pipeline–for $540 million to…itself. Er, at least to the EQT Midstream Partners, a new/separate Master Limmited Partner (MLP) company started by EQT to focus on the midstream sector. The ownership of the pipeline will change on paper (for accounting and investor purposes), but practically speaking, nothing else will change.

The EQT announcement:
Read More “EQT Sells Sunrise Pipeline Operation to Itself for $540M”
Columbia Pipeline Group | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | NiSource | Ohio | Pipelines | Processing Plants | Statewide OH

OH Hickory Bend Pipeline/Plant Makes Excellent Progress
July 17, 2013July 17, 2013

An update on the Pennant Midstream “Hickory Bend” pipeline and cryogenic processing plant being built in eastern Ohio. The local labor union boss says excellent progress is being made as the project now enters its second phase, in spite of distractions from anti-drillers (see Slight Delay for Hickory Bend Processing Plant, Permit Appealed)…
Read More “OH Hickory Bend Pipeline/Plant Makes Excellent Progress”
Energy Companies | Hess | Lease & Royalty Payments | Newfield Exploration | Pennsylvania | Wayne County

DRBC Delay Costs Wayne County Landowners $187.5M, Hess Pulls Out
July 16, 2013July 16, 2013

Thank you Carol Collier (Executive Director) and the other members of Delaware River Basin Commission (DRBC): You’ve just cost Wayne County, PA landowners a collective $187.5 million by your continued inaction to allow drilling in Wayne County. Newfield Appalachia PA and Hess Corp. started sending notices last week to Wayne County landowners that they’ve decided to terminate the leases they made with them in 2009–on more than 100,000 acres.

Not wanting to tick off the DRBC and the member states of NY, NJ, PA and DE, the drillers blamed the lease terminations on a change in strategy–they want to drill in oily shale plays. But we know the real reason…
Read More “DRBC Delay Costs Wayne County Landowners $187.5M, Hess Pulls Out”
Antero Resources | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines | Rockies Express Pipeline | Utica Shale

REX Reverses Pipeline Flow from OH for Mystery Utica Customer
July 16, 2013July 16, 2013

What a difference a year makes. Last August, RBN Energy President Rusty Braziel said the Rockies Express Pipeline (REX), which originates in Rio Blanco County, Colorado and sends gas to Monroe County, Ohio, was in danger of drying up because there’s so much shale gas coming from the Marcellus. His prescription? Turn it around and send gas the other way (see REX NatGas Pipeline Faces Stiff Competition from Marcellus). Looks like REX has taken Rusty’s advice.

In a press release issued yesterday, REX announced they have a binding agreement with an unnamed “large Utica Shale producer” who wants to use the pipeline to ship 200,000 decatherms of processed natural gas per day to the Midcontinent region of the country. That is, REX is reversing the flow for at least part of the pipeline. And who might the unnamed “mystery” producer be? We think we know…
Read More “REX Reverses Pipeline Flow from OH for Mystery Utica Customer”
Butler County | CONSOL Energy | Energy Companies | Greene County (PA) | Pennsylvania | Statewide PA | Upper Devonian Shale | Washington County

New Shale Layer Above the Marcellus Yields Positive Results
July 16, 2013July 16, 2013

What’s this? A new, third layer of shale a few hundred feet above the Marcellus is producing good quantities of shale gas? Yep. And CONSOL Energy reports they’ve successfully tapped it…
Read More “New Shale Layer Above the Marcellus Yields Positive Results”
CONSOL Energy | Energy Companies

CONSOL 2Q13: Drilled 17 Marcellus/Utica Wells, Completed 15
July 16, 2013July 16, 2013

Second quarter earnings and operational update season is upon us. Yesterday Pittsburgh-based CONSOL posted their 2Q13 update (below). CONSOL has traditionally been one of the country’s largest coal producing companies. In recent years, however, they’ve changed their focus to natural gas–specifically Marcellus and now Utica Shale natural gas. That ongoing changeover is quite evident by the amount of space in the update below devoted to gas vs that devoted to coal operations.

During 2Q13, CONSOL drilled 13 Marcellus Shale wells and 4 Utica Shale wells. They also completed 15 Marcellus Shale wells during that period. Overall, CONSOL produced 418 million cubic feet of natural gas per day on average during second quarter. However, perhaps the most exciting news in this update is CONSOL’s successful results for a new, third shale layer: the Upper Devonian layer. The full CONSOL update:
Read More “CONSOL 2Q13: Drilled 17 Marcellus/Utica Wells, Completed 15”
Energy Companies | Range Resources Corp

Range Resources 2Q13: Production Up 27% Due to Marcellus
July 16, 2013July 16, 2013

Last week Range Resources released its 2013 second quarter update. Range reports its production volumes hit record highs of 910 million cubic feet equivalent per day–of that, 79% was natural gas the rest liquids, oil and condensate. The company credits its continued success and the dramatic increase from last year (up 27%) to a single cause: the Marcellus Shale.

The report issued by Range last Thursday:
Read More “Range Resources 2Q13: Production Up 27% Due to Marcellus”
Energy Companies | Marion County | Marshall County | Trans Energy | Tyler County | West Virginia | Wetzel County

Trans Energy Presentation: Charts, Maps & More
July 16, 2013July 16, 2013

Trans Energy, Inc. is a “pure play” (single focus) driller in the Marcellus Shale–specifically in the northern panhandle region of West Virginia. Along with its joint venture partner Republic Energy, Trans Energy owns and operates on 62,000 acres in WV, primarily in Marshall, Wetzel, Tyler and Marion counties.

In April, Trans Energy issued a investors presentation full of very useful charts and maps and details about their operations (embedded below). We’ve just noticed that presentation and believe it’s worth passing along now, even though it’s now three months old. We especially like the “Competitive Market Position” map on slide 8…
Read More “Trans Energy Presentation: Charts, Maps & More”
Energy Companies | Epsilon Energy | Pennsylvania | Statewide PA

Shareholder Rebellion at Epsilon Energy – New Board as of Today
July 15, 2013July 15, 2013

Apparently there’s been a shareholder rebellion at Marcellus driller Epsilon Energy. MDN reported a year ago that Epsilon, headquartered in Ontario, Canada, was scaling back its focus on drilling in the Marcellus due to low natural gas prices, and instead concentrating on oil drilling in the Bakken Shale region of North Dakota (see Epsilon Energy 2Q12 Update: Scaling Back in the Marcellus). At that time (perhaps still), the company owned a 35% stake in the Auburn gas gathering system in the PA Marcellus.

The company released the following statement on Friday that virtually the entire board of directors will resign as of today, July 15, and be replaced by a new slate of board members:
Read More “Shareholder Rebellion at Epsilon Energy – New Board as of Today”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot to Plug Unviable Gas Well in Dimock, PA
July 15, 2013July 15, 2013

Cabot Oil & Gas announced last week that they will plug one of the first Marcellus wells they drilled in Dimock Township (Susquehanna County), PA as soon as the PA Dept. of Environmental Protection (DEP) concludes an investigation into the gas well and two nearby water wells that may have been contaminated with methane from the Cabot well. The well is “unviable.” Cabot (and the DEP) stress that the investigation into whether or not the well is creating methane migration is not done and in the meantime Cabot is supplying water to one of the two affected homes…
Read More “Cabot to Plug Unviable Gas Well in Dimock, PA”
Bradford County | Energy Companies | Pennsylvania | Talisman Energy

Rumor: Talisman Shopping Some of its PA Marcellus Acreage
July 11, 2013July 11, 2013

MDN does not usually speculate on rumor, so the following may or may not be true (it’s fourth-hand information). However, we believe it’s important enough for landowners who may be potentially affected, that we’re willing to repeat the rumor–in the interest of giving PA landowners a heads-up…
Read More “Rumor: Talisman Shopping Some of its PA Marcellus Acreage”
Energy Companies | Noble County | Ohio | Rex Energy | Utica Shale

Rex Energy Production Numbers for 3 Utica Wells in Noble County
July 10, 2013July 9, 2013

Rex Energy has just released production numbers for its first three Warrior South Prospect wells in the Ohio Utica Shale (Noble County). Rex’s CEO, Tom Stabley, called the results “strong” and “impressive,” and indeed they are good numbers. The wells produced on the on the order of 4.2-4.7 million cubic feet of methane per day, 724-763 barrels of natural gas liquids per day, and 228-247 barrels of condensate per day. While we’ve seen better methane flow rates from other Utica wells, all three production metrics together (methane, NGLs and condensate) make these wells very profitable indeed.

The full Rex announcement from yesterday:
Read More “Rex Energy Production Numbers for 3 Utica Wells in Noble County”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Washington County (OH) | West Virginia | Wetzel County

Magnum Hunter 2Q13: 1st Utica Well Drilled, WV Marcellus Continues
July 10, 2013July 9, 2013

Magnum Hunter Resources Corporation, both a driller and a midstream (pipeline) company with operations in the Marcellus and Utica Shale region, released their company wide operational update yesterday for the second quarter of 2013. Among the highlights: Magnum Hunter has just completed drilling its first Utica Shale well (Washington County, OH) and the well will be fracked in late July; the company continues to actively drill Marcellus wells in Wetzel County, WV in a 50/50 joint venture with Stone Energy; and Eureka Hunter is active across both the Marcellus and Utica with new pipeline and compressor station construction projects.

Relevant portions of the update below…
Read More “Magnum Hunter 2Q13: 1st Utica Well Drilled, WV Marcellus Continues”