NFG Dropping a Rig Amid Low Gas Prices, Focus on Pipes

Last week National Fuel Gas Company (NFG), headquartered in Western New York State (operates drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline), issued its quarterly update. The company says it plans to cut back on its natural gas drilling in central and western Pennsylvania next year from three rigs to two, but will increase investment and work on pipelines.
Continue reading

LNG Virtual Pipe Co Stabilis Buys/Merges in American Electric

Stabilis Energy, based in Houston, TX, offers a complete range of fully integrated LNG fueling solutions from LNG production to LNG distribution and technical support across North America. Stabilis has just bought out and merged in another company, American Electric Technologies. And believe it or not, there IS a Marcellus/Utica tie-in.
Continue reading

DEP Permits for NWPA FM100 Pipeline – Marcellus Gas to Transco

In March we told you about National Fuel Gas Company’s (NFG) FM100 Project in northwestern Pennsylvania that will beef up and extend an existing pipeline network to flow an extra 330 million cubic feet per day (MMcf/d) of Marcellus gas to Williams’ mighty Transco Pipeline (see NFG FM100 Pipe Project in NW PA to Feed Marcellus Gas to Transco). The Pennsylvania Dept. of Environmental Protection (DEP) published notices in last weekend’s PA Bulletin of their intent to issue permits for the project.
Continue reading

Seneca Resources NatGas Production “Slightly” Disappoints

“In our exploration and production business, even though we achieved our highest ever average daily production rate this past quarter, we were expecting more. It’s a slight disappointment that we modestly lowered the midpoint of our production guidance to the low end of the range that we established last August.” So said National Fuel Gas Company (NFG) CEO Ron Tanski in talking about NFG’s Seneca Resources shale drilling subsidiary on a conference call last Friday.
Continue reading

Seneca Drilling New Utica Well *on* PA State Land in Elk County

This is a “man bites dog” kind of story. Typically when we read about drilling on Pennsylvania state-owned land, the drilling happens on private land adjacent to the state land with the lateral reaching under state land (leased for that purpose). This time we spotted a story about a new well due to be drilled this year in Elk County, PA that sits directly *on* state land, and will reach under private land!
Continue reading

NFG CEO Tanski Retiring in July, Replacement Named

David P. Bauer – NFG’s next CEO

National Fuel Gas Company (NFG) is headquartered in Western New York State, operating drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline. Via Seneca Resources, NFG drills wells in northcentral and northwestern PA. Via Empire Pipeline, they build and maintain hundreds of miles of pipelines. Big company. Important company. NFG’s CEO, Ronald Tanski, has just announced he’ll retire in July.
Continue reading

NFG FM100 Pipe Project in NW PA to Feed Marcellus Gas to Transco

We’ve just caught wind of a “new” pipeline project coming from National Fuel Gas Company (NFG) in northwestern Pennsylvania that will beef up and extend an existing pipeline network to flow an extra 330 million cubic feet per day (MMcf/d) of Marcellus gas to Williams’ mighty Transco Pipeline. It’s called the FM100 Project. Kind of sources like a radio station, no?
Continue reading

NFG Qtly Update: PA Production Up 28%, 7 New Utica Wells Online

Last week National Fuel Gas Company (NFG), headquartered in Western New York State (operates drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline), issued its first quarter 2019–everyone else’s fourth quarter 2018–update. Via Seneca Resources, NFG drills wells in northcentral and northwestern PA. Via Empire Pipeline, they build and maintain hundreds of miles of pipelines.
Continue reading

Highland Begins Drilling New Injection Well in Trumbull Co., OH

Brookfield location in Trumbull County

MDN recently received a tip from a reader that Highland Field Services (subsidiary of Seneca Resources, which itself is a subsidiary of National Fuel Gas Company) began drilling a new wastewater injection well in Brookfield (Trumbull County), Ohio. This is the third (of five) injection wells Highland has received permits to drill in Highland.
Continue reading

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.
Continue reading

Game On: NFG Accepts US EPA “Methane Challenge”

We’re not much of a fan of the federal Environmental Protection Agency–especially the agency under the jackboots of the Obamadroids. The Obama years saw egregious abuses and wild new regulations that tried to stamp out the fossil fuel industry. In March 2016, we told you about a new “voluntary” program set up by the Obama EPA called the Natural Gas STAR Methane Challenge Program (see Dominion & NiSource Bow Down to Lord Obama, Worship the EPA). The program is aimed at trying to reduce the amount of so-called fugitive methane escaping into the atmosphere from oil and gas sources (never mind far more methane escapes into the atmosphere from the agriculture industry than oil and gas, such facts just get in the way of partisan politics). We’re still not sure we like the program, but it has (at least for now) remained voluntary. NFG, National Fuel Gas Company, with all five of its subsidiary companies, has just signed on to the program–to prove their dedication as good stewards of environmental resources.
Continue reading

NFG 4Q18: Production Higher, Northern Access Pipe Slips to 2022

Last week National Fuel Gas Company (NFG), which operates drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its fourth quarter 2018 (everyone else’s 3Q18) update. Via Seneca Resources, NFG drills wells in northcentral and northwestern PA. Via Empire Pipeline, they build and maintain hundreds of miles of pipelines in PA and New York, where the company is headquartered. NFG operates a utility (gas and electric) company in addition to Seneca and Empire. A lot of spinning plates to watch. But they do a great job. Much of the focus of the update was on the upstream–on Seneca Resources. According to CEO Ron Tanski, in 2019 more than half of the company’s capital expenditures will go for Seneca’s drilling program. Seneca has and will continue to operate three drilling rigs, with plans to expand production by 24%.
Continue reading

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?
Continue reading

Cabot, Seneca Resources Grab 100% of New Transco Leidy Expansion

Williams is expanding its mighty, 10,500-mile Transcontinental Gas Pipe Line Co (Transco), again. Sometime this month Williams will prefile a request with the Federal Energy Regulatory Commission for the Leidy South expansion project. The new project will bump up “compression” (either build new compressors or refit existing compressors) and build new “looping” pipeline in Pennsylvania, in order to increase capacity of Transco in the northeast Marcellus region by another 580 million cubic feet per day (MMcf/d).
Continue reading

Cabot, Seneca, Chief Ramp Up Production for Atlantic Sunrise

According to a report from BTU Analytics, the top three shippers who will soon flow natural gas along Williams’ Atlantic Sunrise Pipeline (ASP)–Cabot Oil & Gas, Seneca Resources and Chief Oil & Gas–have “nearly doubled” their rig counts over the past few months leading up to the imminent startup of ASP. The pipeline is due to go online any day now–by the end of August (see Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August). Cabot has reserved 1 billion cubic feet per day (Bcf/d) of the 1.7 Bcf/d capacity of the new ASP. One third of Cabot’s 1 Bcf/d (350 million cubic feet per day, MMcf/d) will flow to Dominion’s Cove Point LNG export plant in Maryland–heading for Japan. Another 500 MMcf/d of Cabot’s gas will go to Washington Gas via ASP–meaning northeast PA Marcellus molecules will help heat, cool and power D.C. swamp dwellers. Joy. Here’s the great news that a single pipeline is stirring up a lot more drilling in northeastern PA…
Continue reading

Financial Checkup for Marcellus/Utica Drillers

RBN Energy, headed by founder Rusty Braziel (co-founder of Bentek Energy), is, in our opinion, the premier oil and gas analytics firm out there. Smart people working at RBN. And they offer up some amazing content on their blog site–for free! At least it’s free for a while, then it goes behind a paywall. A few days ago RBN published a blog post on the financial health for the 44 major publicly-traded U.S. exploration and production companies (drillers). RBN groups them into three categories: Oil-Weighted, Diversified, and Gas-Weighted. We found the Gas-Weighted list of 10 companies and the information revealed about them to be fascinating and worth studying. Each of the companies has major operations in the Marcellus/Utica–some of them totally focused on our region. Among the data points shared: revenue, production costs, lifting costs and more. We think of the following as a handy financial health scorecard/checkup for 10 of the biggest drillers in the M-U, including Antero Resources, Cabot Oil & Gas, Chesapeake Energy, CNX Resources, EQT, Gulfport Energy, National Fuel Gas (Seneca Resources), Range Resources, Southwestern Energy, and Ultra Petroleum…
Continue reading