CNX CEO Calls Lib California Hotel Shareholder Proposal “Spam-Like”
The war of words continues. Two days ago, MDN told you that the liberal owner of two hotels in California, Jon Handerly, who happens to own a few thousand shares of CNX Resources stock, wants shareholders to approve his cockamamie proposal to force the company to produce an annual report detailing the company’s “efforts” to comply with the nonsensical “Paris Agreement” to reduce so-called greenhouse gas emissions (see Calif. Hotel Liberal Pressures CNX to Report on Loony Paris Goals). CNX CEO Nick DeIuliis is against the proposal and is going very public with his views that the proposal is “spam-like in nature.”
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New shale permits issued for Apr. 17-23 in the Marcellus/Utica picked up five from the prior week. There were 25 new permits issued in total last week, up from 20 in the prior week. Last week’s tally included 21 new permits for Pennsylvania, 2 new permits for Ohio, and 2 new permits in West Virginia. Last week the top receiver of new permits was Range Resources with 7 permits issued in Washington County, PA. Greylock Energy was number two with 6 new permits issued in Greene County, PA.
Air monitors at Shell’s ethane cracker plant detected elevated levels of benzene (which can cause cancer in humans) following an April 11 malfunction. However, an industrial hygienist told attendees at Tuesday night’s webinar session with local residents that the levels of benzene detected at the cracker’s community-adjacent fenceline during and after the release were too low to cause “even transient discomfort or irritation.” The highest concentrations found outside the fenceline were “in the parts per billion range.”
Last night, Shell hosted a virtual community meeting to address air monitoring and recent problems experienced at the company’s ethane cracker plant in Beaver County, PA. Executives answered questions about the plant’s environmental record over the past six months, including a recent odor event earlier this month (see 
Yesterday Range Resources Corporation issued its first quarter 2023 update and held a conference call with analysts. On the call, retiring (as of May 10th) CEO Jeff Ventura proclaimed Range sits at the best spot it’s been in history. Ventura said, “For the Marcellus, the future is very bright.” Incoming CEO (currently COO) Dennis Degner echoed Ventura’s remarks and pledged to “stay the course” and continue to “block and tackle” in the months and years ahead.
Last December, Rice Acquisition Corp II, a special purpose acquisition company (SPAC) started by the Rice brothers (Danny, Toby, and Derek), announced a deal to acquire NET Power–an electric power developer with revolutionary new technology to capture every last molecule of carbon dioxide from natural gas-fired power plants (see 
Free cash flow (FCF) refers to a company’s available cash repaid to creditors and as dividends and interest to investors. Companies typically use FCF to buy back shares of stock, pay fatter dividends, or pay off creditors. When the price of natural gas went through the roof last year, natural gas drillers were rolling in the FCF. Now with natgas commodity prices in the basement, FCF money has been wiped off the table. How much? For six large natural gas-focused drillers (five of them focused on the Marcellus/Utica, one on the Haynesville), some $8 billion of FCF is “now off the table” according to an article by Bloomberg.
Yesterday EQT Corporation held its annual meeting in Pittsburgh. It was short and sweet. Everything presented in the company’s previously filed (with the SEC) notice about the meeting was approved at the meeting via proxy vote. Among the items approved was the always-ticklish issue of executive (and board) compensation. EQT has five named executive officers, including CEO and President Toby Rice. Toby’s regular annual salary is exactly $1 (not a typo). However, Toby gets bonuses based on the performance of the company. The board voted to grant Toby $780,000 in cash, and $10.8 million in company stock, for a total of $11.6 million in total compensation for 2022. And that’s down from 2021, when he made total compensation of $16.9 million.
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (other regions too), owns approximately 8 million acres of leases with 65,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. Last week the company issued its fourth annual ESG report, titled “Decarbonizing While Delivering” (full copy below). Across its 10-state operations, Diversified added more than $1 billion in GDP to various state economies, supported more than 8,600 direct and indirect jobs, and generated $500 million in federal, state, and local revenues. On the environmental front, Diversified Energy reduced methane intensity by 20% overall and by more than 30% in the Marcellus/Utica.
There is an ongoing issue with cleanup at a Chesapeake Energy well pad in Bradford County, PA. The Pennsylvania Dept. of Environmental Protection (DEP) showed up at the site to conduct an inspection earlier this year, in January. The DEP inspector found “multiple pools and puddles on the site contaminated with drilling wastewater and possible fracking chemical fluids.” The DEP issued a notice of violation (NOV) for failing to prevent contamination from being discharged on the site. Chesapeake promised to get it cleaned up. Yet, in multiple repeat inspections since then, inspectors have continued to find contaminated fluids on the ground.