Energy Companies

Chesapeake Energy | Energy Companies

Chesapeake & KKR Form Partnership to Invest in Royalties
March 6, 2012March 6, 2012

Chesapeake Energy and Kohlberg Kravis Roberts (KKR) are joining forces to invest in buying royalty interests in shale drilling areas in the United States. KKR is a global investment firm with $59 billion in assets under management. Under the deal, Chesapeake will find the deals and contribute 10 percent of the money, and KKR will kick in the other 90 percent of the money. The initial commitment is to invest $250 million.

From the joint press release:

Read More “Chesapeake & KKR Form Partnership to Invest in Royalties”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Susquehanna County, PA Hosts 8 of Top 10 Shale Gas Wells
March 5, 2012March 5, 2012

Although Dimock, in Susquehanna County, PA seems to be known for water problems from unrelenting negative press, it should be known for another reason—it’s home to the state’s number one producing Marcellus Shale gas well, the King 2. In fact, Dimock and neighboring Springville Township host eight of the state’s 10 most productive shale gas wells, according to recent reports from the PA DEP.

Read More “Susquehanna County, PA Hosts 8 of Top 10 Shale Gas Wells”
Chesapeake Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues

Rolling Stone Shale Gas Hit Piece, Chesapeake Responds
March 5, 2012March 5, 2012

Last week Rolling Stone magazine ran a hit piece on the natural gas industry in general, and Chesapeake Energy and its CEO Aubrey McClendon in particular. The article, titled “The Big Fracking Bubble: The Scam Behind the Gas Boom” tries to recycle the theme already postulated by Ian Urbina in the New York Times some months ago that energy companies are vastly overstating just how much gas there is, and that they are in essence perpetrating a fraud on investors by covering it up. Rolling Stone, the NYT and other anti-drilling “media” outlets (I’d call them propaganda outlets) all use the same language and same arguments, trying to drive into readers’ psyche that shale gas drilling is a “Ponzi scheme” hoping to connect Bernie Madoff with gas drilling in your mind. Nice try Rolling Stone.

On Saturday, Chesapeake issued the following response, exposing the fallacies and lies found in the Rolling Stone article:

Read More “Rolling Stone Shale Gas Hit Piece, Chesapeake Responds”
Accidents | Butler County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Rex Energy

Rex Energy Stops Water Deliveries in Butler, Protests Begin
March 2, 2012March 2, 2012

About 75 people picketed in front of Rex Energy’s offices in downtown Butler, PA yesterday afternoon. They were protesting the decision by the PA Department of Environmental Protection that allows Rex Energy to stop water deliveries to 11 families in Connoquenessing Township community (30 miles north of Pittsburgh).

The families claim that nearby Marcellus Shale drilling by Rex contaminated their water wells. Rex has been providing water to the families for the past year while the DEP conducted an investigation. The results of the investigation show that Rex’s drilling has not caused any water issues for those families.

Read More “Rex Energy Stops Water Deliveries in Butler, Protests Begin”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Mahoning County | Ohio

Drilling Heats Up with New Permits in Ohio’s Utica Shale
March 2, 2012March 2, 2012

Although new drilling activity is lessening in the Marcellus, it’s red hot in the Utica Shale. The Ohio Department of Natural Resources (ODNR) just issued another permit to Chesapeake to drill a horizontal well in Columbiana County, Chesapeake’s 18th permit in Columbiana. In Mahoning County, ODNR granted a permit for a new well in Goshen Township, making it seven wells for that township so far. Chesapeake holds 49 permits in Carroll County with 10 wells waiting to be fracked.

Read More “Drilling Heats Up with New Permits in Ohio’s Utica Shale”
Energy Companies | PDC Mountaineer

PDC “Temporarily” Suspends All Marcellus Drilling Operations
March 1, 2012March 1, 2012

Petroleum Development Corporation (PDC) announced yesterday that they are “temporarily” suspending drilling operations in the Marcellus Shale because of “depressed” natural gas prices. They will keep their planned 2012 capital budget the same, at $284 million, and reallocate the $12 million they would have used in the Marcellus operation to other liquids-rich operations. So far this year PDC has drilled three Marcellus wells and they will finish drilling a fourth well before suspending all Marcellus operations.

From the PDC press release:

Read More “PDC “Temporarily” Suspends All Marcellus Drilling Operations”
Energy Companies | Industrywide Issues | Lackawanna County | NG Vehicles | Pennsylvania | Southwestern Energy

Southwestern Gives Away CNG Chevy Tahoe to Promote Marcellus
March 1, 2012March 1, 2012

There are over 100,000 compressed natural gas (CNG) vehicles on U.S. roadways, and roughly 400 CNG filling stations. Add one more CNG vehicle to that number in South Abington Township in Lackawanna County, PA—given away as a prize to promote CNG awareness.

The price to fill it up? How does $2 per gallon (gasoline equivalent) sound?

Read More “Southwestern Gives Away CNG Chevy Tahoe to Promote Marcellus”
Anschutz Exploration | Chesapeake Energy | Columbiana County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Utica Shale

Ohio Landowners Sue to Break Utica Lease Contract
February 29, 2012February 29, 2012

A group of landowners in Columbiana County, Ohio have filed a lawsuit seeking to dissolve lease agreements they say were improperly transferred from Anschutz Exploration to Chesapeake.

Read More “Ohio Landowners Sue to Break Utica Lease Contract”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Oil & Gas to Donate $2M to Build New Hospital in NE PA
February 29, 2012February 29, 2012

Cabot Oil & Gas is donating an initial $1 million to help build a new hospital in Montrose (Susquehanna County), PA. Not only will they donate $1 million now, but Cabot is trying to enlist other companies to donate and so will match any other donations and give up to an additional $1 million to the project. Cabot’s goal is to jumpstart the capital campaign with a total $3 million infusion—much needed for a project that is projected to cost $30 million total.

From the Cabot press release:

Read More “Cabot Oil & Gas to Donate $2M to Build New Hospital in NE PA”
Antero Resources | Crestwood Midstream | Doddridge County | Energy Companies | Energy Services | Harrison County | Industrywide Issues | Pipelines | West Virginia

Antero Sells WV Midstream Operation to Crestwood for $375M
February 29, 2012February 29, 2012

Antero Resources announced yesterday that they have sold their Marcellus Shale midstream gathering system in Harrison and Doddridge counties, WV to Crestwood Holdings for $375 million with a sweetener of an extra $40 million if certain production targets are met in 2012 and 2013.

From the Crestwood/Antero press release:

Read More “Antero Sells WV Midstream Operation to Crestwood for $375M”
Energy Companies | Southwestern Energy

Southwestern Energy Increases Marcellus Budget for 2012
February 29, 2012February 29, 2012

Southwestern Energy just released their fourth quarter and year-end financial and operating results, along with a revised 2012 capital budget. In the Marcellus Shale, Southwestern spent $332 million to drill 45 wells in 2011. They have budgeted an increase in their Marcellus budget for 2012 to $526 million with plans to drill 80-85 wells.

From the relevant portion of the press release:

Read More “Southwestern Energy Increases Marcellus Budget for 2012”
Accidents | Chevron | Energy Companies | Industrywide Issues | Pennsylvania | Washington County

Chevron Pipe Leak in SW PA Bigger Than First Thought
February 28, 2012February 28, 2012

On Dec. 20, Chevron discovered a pipe leak at a well pad in Robinson (Washington County), PA. At the time it was thought perhaps a few barrels of wet gas condensate had leaked into the ground. It now appears it may be closer to 80 barrels, or 4,000 gallons.

Read More “Chevron Pipe Leak in SW PA Bigger Than First Thought”
Anadarko | Chesapeake Energy | Chevron | CNX Resources | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Range Resources Corp | Seneca Resources | Shell | Talisman Energy

Pennsylvania’s Top 10 Marcellus Drillers in 2011
February 27, 2012February 28, 2012

NOTE: The facts and figures below were cited from a Pittsburgh Tribune-Review article. MDN has been contacted by several of the drilling companies in the list to let us know the numbers in some cases are not at all accurate. MDN is attempting to verify now (Feb 28) and will correct these numbers as soon as the raw data can be further analyzed.

In 2011, Marcellus drilling expanded exponentially in Pennsylvania. According to the PA Department of Environmental Protection (DEP), companies drilled 2,755 Marcellus shale gas wells in Pennsylvania in 2011, up from 1,386 in 2010. That’s nearly a 200 percent increase (or doubling) in one year alone.

Below are the top 10 Marcellus drillers in Pennsylvania ranked by amount of gas produced. Included are some other bits of information (PA figures only) to give you an idea of the size and scope of that company’s operation in the PA Marcellus. (mcf = thousand cubit feet)

Read More “Pennsylvania’s Top 10 Marcellus Drillers in 2011”
Anschutz Exploration | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Tompkins County

Another Look at the Dryden Fracking Ban Court Decision
February 27, 2012February 27, 2012

Last week, New York State Supreme Court Judge Phillip Rumsey ruled that the Town of Dryden has the right to ban gas drilling within its municipal borders (see this MDN story). As MDN pointed out, this is “round one” in the fight for landowner property rights. The Supreme Court in New York is only one step above county court. The Court of Appeals is the highest court in New York State.

Others have weighed in on the Dryden decision, including the Dryden Safe Energy Coalition (DSEC), a pro- but very much safe-drilling group headquartered in Dryden. From the DSEC press release following the decision:

Read More “Another Look at the Dryden Fracking Ban Court Decision”
Antero Resources | Energy Companies

Antero Allocates 79% of 2012 Drilling Budget to Marcellus
February 27, 2012February 27, 2012

Antero Resources announced its 2012 capital budget today. Among the plans: 79 percent of the drilling budget is allocated to Marcellus Shale. Antero currently operates six drilling rigs in the Marcellus. They also announced today they are selling a portion of their Marcellus gathering pipeline system to Crestwood Holdings for $375 million in cash.

Read More “Antero Allocates 79% of 2012 Drilling Budget to Marcellus”
Chesapeake Energy | Energy Companies

Chesapeake Lowers Production 1 BCF/D & Dry Gas Drilling 70%
February 23, 2012February 22, 2012

Chesapeake Energy released fourth quarter 2011, and full year 2011 numbers on Tuesday. About one month ago Chesapeake announced they were curtailing 0.5 billion cubic feet (bcf) of gas production per day because of low commodity gas prices. At the time they threatened to up that number to 1.0 bcf. According to Tuesday’s announcement, they have made that adjustment. Chesapeake wants to save its gas to sell it when the prices go back up, and likely hopes that by taking a good amount of gas out of circulation, it will help drive up the historically low prices sooner rather than later.

In addition to curtailing current production, Chesapeake also announced they will spend 70 percent less on drilling in dry gas areas this year from last year.

From the relevant portions of the Chesapeake press release:

Read More “Chesapeake Lowers Production 1 BCF/D & Dry Gas Drilling 70%”