Fire at EQT Well Pad in Marshall County, WV

Yesterday, gas processing equipment at a Trans Energy well pad (now owned by EQT) in Marshall County, WV caught fire. The important things to know: (1) The fire was quickly extinguished, (2) nobody was injured, (3) this was not a well fire and was not related to drilling or fracking. There is a single operating Marcellus well at that location–drilled back in 2011. The well has been producing natural gas and other hydrocarbons since that time. As is common, some of the hydrocarbons (like condensate) are separated right at the well location, by equipment located near the pad. The fire began in that processing equipment. No residents were evacuated and the fire was out within a few hours. However, workers at the nearby Williams Fort Beeler natural gas processing plant were evacuated for a brief time, out of “an abundance of caution”…
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Keeping Trans Energy’s Bacon Out of Fire Earned Law Firm an Award

Last October EQT announced a deal to buy Trans Energy, Inc., a public pure-play driller in the Marcellus in West Virginia, which will become a wholly-owned subsidiary of EQT (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT also bought Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (in WV). When the deal closed, investment bank Gordian Group strutted around making some big boasts about their role in the deal. Gordian, via a press release, took credit for keeping Trans Energy out of bankruptcy court and for soaking EQT on the purchase price (see EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts). It seems Gordian isn’t the only one strutting about the the EQT/Trans Energy deal. International corporate law firm Haynes and Boone, with a big energy practice in Texas, also assisted with the deal. In fact, in a Haynes and Boone press release, they boast that keeping Trans Energy solvent long enough to sell out to EQT earned the law firm the 2016 “Out-of-Court Restructuring Deal of the Year” award by The M&A Advisor…
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EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts

In October EQT announced a deal to buy Trans Energy, Inc., a public pure-play driller in the Marcellus in West Virginia, which will become a wholly-owned subsidiary of EQT (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT is also buying Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (in WV). The deal has now closed and investment bank Gordian Group is strutting around making some big boasts about their role in the deal. Gordian, via a press release issued yesterday, takes credit for keeping Trans Energy out of bankruptcy court and for soaking EQT on the purchase price. Here’s Gordian’s expert piece of self puffery….
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Analysis: EQT Paying $9K-$10K per Acre for WV/PA Acreage

researchYesterday MDN reported that EQT is buying another 60,000 Marcellus/Utica acres (along with buying out Trans Energy) in transactions totally $683 million (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). One of our favorite Seeking Alpha analyst/authors, Richard Zeits, has done a deep dive into the deal. Zeits reports the deal works out to be $9-$10,000 per acre on average, which is in line with other recent deals of this type. Here is some of Zeit’s insightful research commentary…
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EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M

EQT logoYesterday EQT announced a pair of deals that will net the company another 60,000 Marcellus/Utica acres including 44 Marcellus wells producing a collective 44 million cubic feet equivalent per day (MMcfe/d) of natural gas. Most of the acreage (42,600) is in three West Virginia counties, with another 17,000 acres in three Pennsylvania counties. EQT is paying a total of $683 million for the two deals. In the first deal, EQT is buying Trans Energy, Inc., which will become a wholly-owned subsidiary of EQT. EQT is also buying Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (WV). In the second deal, EQT is buying 17,000 acres from an unidentified third party in southwestern PA, in Washington, Westmoreland and Greene counties. EQT describes the purchases as adding acreage to their “core development area.” You may recall that EQT closed a deal in July, just three months ago, to purchase 62,500 acres from Statoil in WV for $407 million (see Statoil Completes Sale of WV Marcellus Assets to EQT). So why is EQT once again spending money? Analysts speculate it’s because of EQT competitor Rice Energy’s recent deal to buy Vantage Energy with its 85,000 acres in Greene County (see Vantage Energy is No More – Rice Energy Completes $2.7B Buyout). Here’s the particulars about EQT’s latest acquisitions…
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Trans Energy Clean Water Act “Crime” Results in 2 Yrs Probation

We suppose Trans Energy, a WV-based shale driller, is now considered a hardened, convicted criminal. The company’s crime? Pushing dirt into a few creeks without a permit. It’s a crime for which they are paying dearly. Last October MDN brought you the story of the federal Environmental Protection Agency and WV Dept. of Environmental Protection joint investigation into Trans Energy’s dirt-pushing and the resulting $3.6 million in fines (see Court Adds Another $600K to $3M Fine for Trans Energy in WV Case). Investigators from the EPA’s Criminal Enforcement Program in the Mid-Atlantic States got involved. Bet you didn’t know the EPA has a Criminal Enforcement Program, did you? The kicker: under a plea agreement signed yesterday by Trans Energy’s CEO John Corp, the company (presumably Corp) will need to report to a federal probation office for the next two years. Scene at the probation office waiting room: Corp sitting on a bench in a tailor-made business suit, sitting next to a convicted meth lab operator covered head to toe with tats. “What are you in for?” says the drug peddler. “Violating the Clean Water Act,” says Corp. “Dang, you really are a nasty piece of work,” says the drug peddler…
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Trans Energy Sells 5,159 Acres/12 Wells in Wetzel County for $71.3M

UPDATE 4/11/15: We now know the identity of the company doing the buying. See our note at the end of the article.

Trans Energy, a small but active “pure play” Marcellus driller in West Virginia, announced it has signed a deal with an unnamed buyer for one-third of their remaining Marcellus acreage, located in Wetzel County, WV. The deal is for 5,159 net acres and twelve producing Marcellus wells. Sale price? $71.3 million. This deal means that Trans Energy will no longer have active operations or leases in Wetzel County. They will continue to have active operations and leases in Marshall and Marion counties. This is not the first time Trans Energy has sold some of their WV acreage to an unnamed buyer. They sold 1,163 acres and two well pads with an unfinished well in Tyler County in October 2013 (see Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?). As in 2013, the buyer for the Wetzel acreage is not named, but MDN has a guess about who it may be…
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Court Adds Another $600K to $3M Fine for Trans Energy in WV Case

A month ago MDN told you about a steep fine Trans Energy, a West Virginia Marcellus driller, agreed to pay for screwing up 15 creeks and swamps with dirt they pushed around for drilling purposes (see Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt). The money will be split 50/50 between the federal EPA and the WV Dept. of Environmental Protection. Trans Energy was in U.S. District Court yesterday to plead guilty to three misdemeanor charges of negligently violating the Clean Water Act. That will tack on another $600,000 in criminal fines to the $3M already agreed too ($200K for each violation). Ouch. The number that really hurts, however, is that Trans Energy will spend more than $13 million to complete the restoration and mitigation work required by the consent decree they signed yesterday…
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Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt

Trans Energy, a smaller, “pure play” driller in the West Virginia Marcellus Shale, has just been slapped bigtime by the federal Environmental Protection Agency along with the WV Dept. of Environmental Protection. The EPA announced a deal with Trans Energy whereby the company will pay an astounding $3 million fine for “unauthorized discharge of dredge or fill material” into creeks and swamps in 15 different locations. Apparently Trans Energy didn’t get a “Mother May I?” permit when building roads and pushing dirt around at some of their Marcellus drilling sites and so will now pay a heavy fine. Oh, and speaking of the $3M fine–it will be split 50/50 between the EPA and the WVDEP. Party time at EPA HQ!…
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Trans Energy’s WV Focus Paying Off – IP Numbers for 8 Wells

Trans Energy is a smaller, “pure play” driller in the WV Marcellus Shale. MDN told you last October that Trans Energy had sold off it’s holdings in Tyler County, WV in order to focus on drilling in Marshall, Wetzel and Marion counties (see Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?).

Looks like focusing is paying off for Trans Energy. Tuesday the company provided an update on production for 8 of their wells in Marion and Marshall counties. The IP (initial production) numbers look pretty darned good to us…
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Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?

Yesterday Trans Energy, a pure play driller focused on the Marcellus Shale (in West Virginia) announced they’re selling off their holdings in Tyler County, WV so they can concentrate on their holdings and drilling operations in Marshall, Wetzel and Marion counties instead. The deal is for 1,163 acres, two well pad sites and one uncompleted Marcellus Shale well. Trans Energy is getting $11.2 million for the transaction.

The announcement from Trans Energy does not identify who is doing the buying, but MDN has what we consider a pretty solid guess…
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Trans Energy Presentation: Charts, Maps & More

Trans Energy, Inc. is a “pure play” (single focus) driller in the Marcellus Shale–specifically in the northern panhandle region of West Virginia. Along with its joint venture partner Republic Energy, Trans Energy owns and operates on 62,000 acres in WV, primarily in Marshall, Wetzel, Tyler and Marion counties.

In April, Trans Energy issued a investors presentation full of very useful charts and maps and details about their operations (embedded below). We’ve just noticed that presentation and believe it’s worth passing along now, even though it’s now three months old. We especially like the “Competitive Market Position” map on slide 8…
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Trans Energy Update: Full Speed Ahead in WV Marcellus

Trans Energy, a Marcellus Shale driller concentrating their efforts in four West Virginia counties, released a comprehensive operational update yesterday. The Trans Energy update names names–wells currently being drilled (and where), with an update on the volume of natural gas existing wells are producing. They’ve upped their natgas production an impressive 79% in the past year.

The Trans Energy update:
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Trans Energy Production Numbers for Wells in Marshall County, WV

Trans Energy continues to drill solely in the Marcellus Shale of West Virginia. Yesterday they released initial production numbers on two more newly drilled wells—in Marshall County, WV (see below). In late November the company released IP numbers for for a pair of wells in Wetzel County (see Trans Energy Update on WV Marcellus Wells: “Two of Our Best”). Once again company CEO John Corp says these two new wells in Marshall are “two of our best performing wells to date.”

Corp also says the company is starting to produce “operational consistency” and a repeatable “manufacturing process” for drilling successful wells. Trans Energy is deploying two additional drilling rigs in Marshall and Marion counties now with plans to also drill in Tyler County later this year.

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