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15 New Shale Well Permits Issued for PA-OH-WV Jun 24 – 30
We’re playing catch-up following our brief Wednesday through Friday vacation last week. The first order of business is to bring you the list of permits issued for the week of June 24 – 30. A total of 15 new permits were issued, with most (10) issued in Pennsylvania. Ohio issued four new permits, and West Virginia issued one new permit. Both Seneca Resources and Apex Energy tied for most new permits (three each), with Seneca’s permits issued in Tioga County, PA, and Apex’s permits issued in Westmoreland County, PA.
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While oil-focused and large diversified drillers in the U.S. made healthy profits during the first quarter of this year (January through March), such was not the case for natural gas-focused drillers. RBN Energy tracks 43 exploration and production (E&P) companies that are publicly traded and reports of those 43 that the 16 oil-focused and 15 diversified E&Ps were solidly profitable in 1Q24, earning $20.65/boe (barrels of oil equivalent) and $18.49/boe, respectively. However, the 12 gas-focused E&Ps were “under siege,” posting a loss of $1.65/boe.
Range Resources Corporation, the very first company to drill a shale well targeting the Marcellus Shale layer in Pennsylvania (in 2004), issued its first quarter 2024 update earlier this week. Unlike other large Marcellus/Utica drillers, Range is holding its production flat (not decreasing). The company zags while everyone else zigs. During 1Q, Range produced 2.14 Bcfe/d (billion cubic feet equivalent per day), with approximately 68% of production comprised of natural gas and the rest in NGLs and oil. The company averaged 2.14 Bcfe/d, with 69% of that as natural gas, for all of 2023 (see 
MDN is not a stock-picking service, but we spotted an interesting article appearing on the Seeking Alpha investor’s website about where to invest now so that when the price of natural gas eventually rebounds (and with it, lifts the stock price of gas producers), investors can make money. The investor/writer, who is a nuclear power engineer by training, proposes the theory that investing in the Marcellus/Utica is a better choice than investing in other gas plays because (a) our drillers have lower breakeven costs and (b) some of our drillers also produce NGLs, which fetch more money than methane.
Range Resources was the very first company to sink a Marcellus shale well back in 2004. The company went all-in on the Marcellus and has remained a pure-play driller ever since (to their credit). The company initially set up a regional headquarters in Southpointe (Washington County, PA) with a 60,000-square-foot office. It later upgraded to an office with 182,000 square feet — an entire building all to itself. Although the company has two years left on its lease, Range is, according to sources, looking to downgrade again. The company wants an office space of around 80,000 square feet.
Some residents living in Cecil Township (Washington County), PA, are frustrated and concerned over drilling activities by Range Resources near their homes — things like flaring, loud noises, and smells. They took their concerns and complaints to the March 4 meeting of the Cecil Township Board of Supervisors. The Board voted to give Range one week to respond with a plan to address the issues, or else the Board promised to file a lawsuit against Range in county court.