Southwestern CEO Says Company Slowing M-U Production in 2020

slow warning sign isolated

Bill Way, CEO of Southwestern Energy, said in an interview that his company will grow production next year, but not by much. Southwestern’s 2020 growth will be “in the single digits” versus higher growth this year. Which shouldn’t surprise anyone. Reviewing Southwestern’s 3Q19 numbers we find the company’s Marcellus/Utica production from January to September 2019 was 11% higher than the same time frame from last year. Southwestern’s 3Q19 (July to September) production was 8% higher than the previous year’s 3Q. So the signs were already there to see–if you were looking.
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IEEFA Report Says Marcellus/Utica Drillers in Financial Trouble

Masquerading as a nonpartisan, independent nonprofit, the Institute for Energy Economics and Financial Analysis (IEEFA) reportedly “conducts research and analyses on financial and economic issues related to energy and the environment.” The Institute’s stated mission is “to accelerate the transition to a diverse, sustainable and profitable energy economy.” In other words, they’re anti-fossil fuels. We spotted an article appearing on OilPrice.com that quotes a new “study” issued by IEEFA. The article opens by saying, “drillers in Appalachia are in particularly bad shape.” Is it true? Is the end near? Is it a shalepocalypse?
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Natural Gas Supply Association Goes Nuts, Supports Carbon Tax

What’s the clinical term for a person who intentionally wants to harm him or herself? Self harm? Self injury? Self flagellation? That’s what we call the situation at the NGSA (Natural Gas Supply Association) which yesterday said it supports an economy and shale-killing carbon tax “as a critical pathway to aggressively reducing carbon emissions.” Are they nuts? Have they lost their collective minds?!
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Southwestern Returns as Much Freshwater to Environment as Used

Southwestern Energy continues to be a trailblazer among Marcellus/Utica shale drillers. The company voluntarily participates in several environmental programs aimed at lowering methane emissions, including the TrustWell™ Responsible Gas Program and the ONE Future organization (see Southwestern Energy Lands Another “Responsible Gas” Customer). Air quality is not the only environmental issue important to Southwestern. Water is too.
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Southwestern Energy 3Q – Production Up, Spending Down a Lot

Southwestern Energy, now a pure play driller focused on the Marcellus/Utica since selling off their Fayetteville Shale assets in Sept. 2018, produced 2.2 billion cubic feet equivalent per day (Bcfe/d) of natural gas in 3Q19, up from 2.0 Bcfe/d in 3Q18. (Those numbers remove the Fayetteville to compare apples to apples.) Southwestern drilled 24 new Marcellus and/or Utica wells and completed 30 wells in 3Q, which means, like other drillers, they continue to draw down their DUC (drilled but uncompleted) well inventory. Unlike Cabot which produces 100% dry gas, some 22% of Southwestern’s production was natural gas liquids.
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Southwestern Energy Lands Another “Responsible Gas” Customer

In September 2018 MDN brought you the news that Southwestern Energy had, for the first time anywhere, sold natural gas to a customer (utility company New Jersey Resources) that has been certified as “responsible gas.” The certification comes from Independent Energy Standards Corporation (IES) and they call it their TrustWell™ Responsible Gas Program certification (see Southwestern Sells 1st Certified “Responsible Gas” to NJ Resources). It looks like they’ve landed another customer for their “responsible” gas: Virginia Natural Gas.
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New Trading Platform for “Responsibly Produced NatGas” Launching

Last September MDN reported that Southwestern Energy was the very first driller to earn the label of producing “responsible gas” from the Independent Energy Standards Corporation (IES)–what they call their TrustWell™ Responsible Gas Program certification (see Southwestern Sells 1st Certified “Responsible Gas” to NJ Resources). In April, a driller in the Rockies became the second company to earn the designation (see “Responsible Gas” Certification Expands, Gains Another Driller). Now there’s a way for those who buy and sell natural gas to tell if the gas they’re buying and selling is “responsibly produced.”
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Which Way will PA Supreme Court Rule on ‘Rule of Capture’ Case?

Last week MDN told you that oral arguments would be heard on Thursday at the Pennsylvania Supreme Court in what we believe is one of (perhaps THE) most important shale cases ever in the Keystone State (see Most Important Court Case in PA Shale History Heads to Supremes). The case deals with whether or not the age-old oil and gas principle called “the rule of capture” applies in PA shale drilling.
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Most Important Court Case in PA Shale History Heads to Supremes

This Friday Thursday the justices sitting on the Pennsylvania Supreme Court will hear what we believe is the most important shale gas court case in the history of the state: Briggs v Southwestern Energy. We consider this case to be an existential threat to the future of shale gas drilling in PA should the decision go the wrong way. And no, we’re not exaggerating.
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EQT, Southwestern Top Brass Discuss State of WV O&G, Shale

Toby Rice, CEO and president of EQT, and Clay Carrell, COO and EVP of Southwestern Energy, recently had a sit down discussion about the state of the shale industry in the Marcellus/Utica and its importance to the economy of West Virginia. The discussion happened at the recent West Virginia Chamber of Commerce Annual Meeting and Business Summit. One surprising revelation for us: Carrell said Southwestern now spends most of its money on WV drilling.
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M-U Companies Dominate Top 10 NatGas Producers in 2019

Quick: Which company which recently had a board and upper management shakeup and focuses exclusively on Marcellus/Utica drilling is the #1 natural gas producer in the United States? That’s right, EQT. In a list of the top 40 natgas producers in the U.S. (full list below), it’s striking to note that eight of the top 10 are focused exclusively or primarily on the M-U.
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Southwestern Energy Cutting Rig Count from 6 to 2 in M-U

Yesterday Southwestern Energy, a major Marcellus/Utica driller, released its second quarter 2019 update and talked about the rest of 2019 and beyond. Southwestern total production in 2Q was 186 billion cubic feet equivalent (Bcfe), an 11% increase compared to 2Q18 (excluding the Fayetteville, which Southwestern sold last year to become 100% focused on the M-U). That 186 Bcfe number includes 148 Bcf of gas production, 937,000 barrels of oil production, and 5.5 million barrels of natural gas liquids (NGL) production.
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Capturing the Interest of the Next Generation to Work in PA Shale

The best teachers (people) and the best teacher (method of instruction) have the same thing in common: Hands on. As in tactile, doing stuff, rather than sitting in a chair attempting to learn by information dumping. Particularly with elementary-age kiddies. Cabot Oil & Gas and Southwestern Energy recently sponsored the annual Vehicular Career Day where 400 fifth graders from school districts across Susquehanna County climbed into big rigs, buses, and emergency vehicles. The shale industry was well-represented. Needless to say, the kids loved it.
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Southwestern Energy 1Q19: Drills Longest PA Lateral – 18,683 Feet

Southwestern Energy, one of the largest drillers in the Marcellus with 480,000 acres under lease, turned in their first quarter 2019 update last week. It was the company’s first update since becoming a pure play operator, totally focused on the Marcellus/Utica region. What did it show? Net income nearly tripled to $594 million (vs. 1Q18’s $205 million). Production averaged 2.0 billion cubic feet equivalent per day (Bcfe/d), close to what the prolific Cabot produced in 1Q19.
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“Responsible Gas” Certification Expands, Gains Another Driller

Last September MDN reported that Southwestern Energy was the very first driller to earn the label of producing “responsible gas” from the Independent Energy Standards Corporation (IES)–what they call their TrustWell™ Responsible Gas Program certification (see Southwestern Sells 1st Certified “Responsible Gas” to NJ Resources). Southwestern is considering expanding the designation to more of their operations. Meanwhile, a driller in the Rockies is the second company to earn the designation.
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Landowner Asks PA Supremes to Throw Out 150-Yr-Old Rule of Capture

Last November the Pennsylvania Supreme Court agreed to hear a case, Briggs v. Southwestern Energy, that is hands-down the most important court case to ever happen regarding the Marcellus Shale in PA. And no, we’re not exaggerating. A blizzard of briefs by Southwestern and those supporting Southwestern were filed in February (see “Rule of Capture” Briefs Filed w/PA Supreme Court in Briggs Case). On Wednesday, it was the Briggs’ turn to file a brief, one in which they ask the Supremes to stop application of the 150 year-old “rule of capture” in PA when it comes to shale wells.
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