Help Wanted: Warren Resources Launches Search for New CEO

Warren Resources is a small, independent exploration and production company headquartered in New York City. Warren has ongoing drilling programs in California, Wyoming, and in the Pennsylvania Marcellus Shale. Warren’s Marcellus program is very small–they previously announced they would drill and complete two Marcellus wells in 2015 (see New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015). However, Warren has faced some serious challenges. Last December Warren’s CEO and Chairman of the Board, Philip Epstein, suddenly quit (see CEO of Warren Resources Quits, Replaced by Citrus Energy CEO). Since Epstein’s departure, Citrus Energy CEO Lance Peterson (a Warren board member) has taken the reigns as interim CEO. Now that the company has successfully “navigated the critical liquidity and debt issues,” they’re ready to find a new, permanent CEO. The search has begun…
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Warren Resources Converts Refinanced Debts into $200M Cash

Warren Resources, an independent oil and gas company headquartered in New York City whose drilling is focused primarily in California but with a small operation in the Pennsylvania Marcellus Shale, has just refinanced $250 million worth of existing loans and notes and somehow has wound up with just over $200 million in cash as part of the process. How you can refinance loans and pull out that much cash we have no clue. If you understand the following financial machinations with its talk about first lien credit lines, second lien debt, incurrence tests, LIBOR floors and other financial mumbo jumbo, please enlighten us!…
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Warren Resources Proved Reserves Up 209% Due to Marcellus

Warren Resources is an exploration and production company (E&P) that’s drilled just a handful of wells in the Marcellus, but according to their latest announcement, their proved reserves for natural gas in 2014 jumped 209% “primarily” because of their Marcellus Shale acreage. Perhaps that bodes well for more drilling by Warren? We’ll see. According to the Marcellus and Utica Shale Databook, Vol. 3 (recently published), Warren received permits to drill 4 Marcellus wells in Pennsylvania during the last four months of 2014…
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19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica

The Death ListDavid Fessler is energy and infrastructure strategist (i.e. stock analyst/researcher) with The Oxford Club–a publisher based in Baltimore, Maryland that publishes the Oxford Resource Explorer, among other financial publications. Fessler spends his days immersed in the energy industry and in the stocks of companies in that industry. Fessler and The Oxford Club have produced a special report called “The Oil Company Death List” which is a list of 19 publicly-traded oil and gas companies that, according to a formula worked out by Fessler, will “die soon.” That is, they’ll go bankrupt if they don’t sell themselves or otherwise sell off major assets. Why? They’re “swimming in debt” and way over leveraged with “ugly balance sheets.” Fessler’s simple formula is all about a company’s debt ratio. When a company’s debts reach 4 times or higher its earnings (EBITDA), that’s a huge red flag. Below we have the list of 19 on the “death list” along with a copy of Fessler’s full report (describing his methodology). The interesting/troubling aspect is that 8 of the 19 are Marcellus/Utica operators–one of which is #1 for highest debt-to-earnings ratios. Some companies in the list surprised us–others did not. Is your favorite Marcellus/Utica driller in the list?…
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New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015

So far as we can tell, Warren Resources, a small driller headquartered in New York City, hasn’t drilled a thing in the Marcellus or Utica Shale (for background, see CEO of Warren Resources Quits, Replaced by Citrus Energy CEO). According to Warren’s recently released 2015 capex budget and guidance announcement, that will change in 2015. Warren plans to drill two Marcellus Shale wells at a cost of $13 million. In fact, one well is already drilled and will be completed in March…
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Small Explosion/Fire at P&G Well Pad in NEPA, No Injuries/Damage

P&GNot much to report on this, thankfully. MDN has told you in the past one of the most under-appreciated stories we know of is that the only Proctor & Gamble manufacturing plant out of their 150 plants worldwide that is 100% energy self-sufficient is a plant in Wyoming County, PA–near Wilkes-Barre in northeast Pennsylvania (see P&G’s Only Energy Self-Sufficient Plant is Powered by Marcellus). The plant uses Marcellus Shale gas from wells drilled on plant property to power an electric generator that supplies all of the electricity the plant needs–with some left over to sell to the local utility grid. How cool is that? The company, using Warren Resources, continues to drill more wells on the property. One of those operations, as it was nearing completion, accidentally vented a small amount of natural gas that ignited and caused a small explosion yesterday…
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CEO of Warren Resources Quits, Replaced by Citrus Energy CEO

Warren Resources is an independent exploration and production company headquartered in New York City. Warren has ongoing drilling programs in California, Wyoming, and in the Pennsylvania Marcellus Shale. Or rather, they own leases on 6,982 acres in the Marcellus. We don’t believe they’ve drilled a single well in the Marcellus to date–but perhaps that’s about to change? Last Friday the company announced the sudden departure of its CEO and Chairman of the Board, Philip Epstein. In his place as interim CEO will be board member Lance Peterson, and as interim Chairman of the Board, Dominick D’Alleva. Lance Peterson is the founder and current CEO of Citrus Energy–so it appears that he’ll balance running two companies at the same time. Citrus *is* an active driller in the PA Marcellus…
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Warren Resources Buys Marcellus Acreage/Wells from Citrus Energy

The Marcellus Shale has a new driller in town. This morning, New York City-based Warren Resources announced they have acquired essentially all of the Marcellus assets owned by Colorado-based Citrus Energy for $352.5 million. Warren immediately takes title to several working Marcellus wells currently producing 82 million cubic feet of gas per day…
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