Range Resources Considers Drilling Under Washington, PA Airport

Washington County, PA Airport (click for larger version)

In 2013 CONSOL Energy (now CNX Resources) signed a deal with the Pittsburgh International Airport and Allegheny County to lease 9,000 acres surrounding the airport for natural gas drilling (see $50M Check in the Mail: Pittsburgh Airport Lease a Done Deal). The program was/is a huge success. Range Resources is now sniffing around, investigating doing something similar at the Washington County, PA airport.
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Former Range Exec Who Went to H&H is Now at Encino

Last October MDN told you that the man largely responsible for the huge success of Range Resources in drilling in the Marcellus Shale, Range’s former senior vice president in charge of the Marcellus, John Applegath, left retirement to head on over to Huntley & Huntley, to helm the drilling program there (see Retired Range VP of Marcellus Heads to Huntley & Huntley as COO). He didn’t stay long.
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PA AG Continues Marcellus Witch Hunt, Impanels Grand Jury

PA Attorney General Josh Shapiro

PA Attorney General Josh Shapiro, a sleazy politician, is investigating so-called environmental “crimes” committed by shale companies in a bid to boost his chances of being the next nominee to run for governor (see PA AG Investigates Shale Drillers for “Enviro Crimes”). One of Shapiro’s sham investigations is into Range Resources and the long-ago settled “Haney” court case.
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CNX, Range Resources Proved Reserves Both Go Up

It’s that time of year for energy companies to issue updates on just how much oil and gas they own in the ground, recoverable at current prices. Both CNX Resources and Range Resources, two major Marcellus/Utica producers, recently issued statements outlining their “proved reserves.” CNX has 7.9 trillion cubic feet equivalent (Tcfe) in proved reserves as of Dec. 31, 2018. Range Resources has 18.1 Tcfe in proved reserves.
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Antis Try to Pick Open Old Scab of Settled (and Sealed) Range Case

Three families who live near a former drill site and frack wastewater impoundment at the Yeager Marcellus Shale site in Washington County, PA sued Range Resources in May 2012 claiming the air they breathe and the water they drink had been contaminated by Range’s operations at the site (see EPA Investigating Range Drill Site in Western PA). The case was eventually settled and sealed in September 2018.
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PA AG Investigates Shale Drillers for “Enviro Crimes”

PA AG Josh Shapiro – searching for enviro crimes

It turns out Pennsylvania’s current Attorney General, Josh Shapiro, is not much different than his predecessor, Kathleen Kane (who is sitting in jail for committing perjury). Kane, and now Shapiro, have targeted the Marcellus Shale industry, accusing drillers of committing crimes against the environment. It’s cheap and it’s sleazy and a total abuse of the office, all for political grandstanding.
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Range SWPA Production Takes Hit After MarkWest Plant Explosion

Range Resources issued an updated 2018 (not 2019) capital spending and operational update yesterday to say (a) they spent about $20 million less last year than originally forecast and (b) the company took a hit on production because of an outage at the MarkWest Houston/Harmon Creek processing facilities.
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Price of NatGas Doubles in NEPA – Thanks to Atlantic Sunrise Pipe

The evidence continues to pour in that the addition of Williams’ Atlantic Sunrise Pipeline, a 200-mile greenfield pipeline from northeastern to southeastern PA where it joins the Transco Pipeline, is having a dramatic and ongoing effect on natural gas prices in northeastern PA. As in, the price drillers get for their gas has doubled. Atlantic Sunrise went online in early October (see FERC Approves Atlantic Sunrise for Startup! Pipe Opens Sat. Oct. 6). The main shipper on Atlantic Sunrise is Cabot Oil & Gas. But Cabot isn’t the only shipper, and not the only beneficiary, of higher prices. Seneca Resources and Range Resources are also shipping gas on Atlantic Sunrise, and reaping the price benefits.
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Range Resources CEO: We’re Nation’s 3rd Largest NGL Producer

Jeff Ventura

Range Resources’ CEO Jeff Ventura recently sat down for an interview with Paul Gough, ace reporter for the Pittsburgh Business Times. Paul asked Jeff some good questions. Among the interesting tidbits we learned from their exchange is that Range is now the nation’s third-largest independent NGL (natural gas liquids) producer. Wow! Who knew?! Ventura also talked about the long lateral craze, exports, and the company backing off in the Haynesville Shale.
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Retired Range VP of Marcellus Heads to Huntley & Huntley as COO

The man largely responsible for the huge success of Range Resources in drilling in the Marcellus Shale, Range’s former senior vice president in charge of the Marcellus, John Applegath, is heading to Huntley & Huntley to helm the drilling program there. Applegath recently retired from Range, but he’s not ready for the pasture just yet! He’s jazzed to be working with the much smaller H&H and the team they’ve assembled, to drill in the Pittsburgh area. H&H has roughly 100,000 leased acres in southwest PA.
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Range Resources Helps Save Pretty Butterflies in SWPA

Can fracking save butterflies? According to California University of Pennsylvania’s Supervisor of the Fish & Wildlife, you betcha. You heard how important “pollinators” are, right? We immediately think bees when we hear the word pollinator. But monarch butterflies, a species whose population has dropped 90% since 1990, is also a important pollinator. In places across southwestern PA habitats for the monarch have disappeared, long before shale drilling showed up. Range Resources is helping replant vegetation that monarchs love. And it’s having a big impact. Range’s efforts are not just “throw a few seeds here and there” for publicity. Range is working hard and “willing to do it right.”
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Range 3Q18: Record High Production, Swings to Profit

Range Resources released its third quarter 2018 update earlier this week. The company shows making a $48.5 million profit for the quarter, verses losing $127.7 million in 3Q17. Quite a swing into the black! Some of the credit goes to Rover Pipeline. Range has reserved 400 million cubic feet per day (MMcf/d) on Rover, which is now up and running. Range is ramping up production and expects to use all of their 400 MMcf/d capacity by the end of 2018. Production in 3Q18 averaged a record high of 2.267 billion cubic feet equivalent per day (Bcfe/d), an increase of 14% compared to 3Q17.
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Range Gets $300M for 1% Royalty on Washington County Production

Yesterday Range Resources, the very first company to sink a Marcellus Shale well back in 2004, announced it has cut a deal to “sell a proportionately reduced 1% overriding royalty in its Washington County, Pennsylvania leases for gross proceeds of $300 million.” Yeah. What, exactly, does that mean? More high finance stuff. The deal, as we try to understand it, reminds us of “factoring” that we learned about in our college business classes. You know, selling the money you will receive in the future from accounts receivable for a lump sum today? We think of this deal as kind of like that. Not exactly, but kind of.
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By the Numbers – Revenue & Profitability for M-U Drillers

The expert analysts at RBN Energy have just published their “fourth and final” in a series of posts looking in detail at E&Ps (exploration & production companies, or “drillers”). One of the groups of E&Ps they examine are “gas-weighted” E&Ps–or drillers who mostly extract natural gas. In looking through the list, you immediately realize every one of them has operations in the Marcellus and/or Utica Shale region. Yes, a few also have operations in other plays, but they all have at least some operations here. The real value in the article is an accompanying spreadsheet comparing various financial metrics (apples to apples)–things like total revenue, lifting costs, production costs, and “pre-tax income,” meaning profitability. How do our drillers compare with each other?
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