Energy Services

Energy Companies | Energy Services | EQT Corp | Industrywide Issues | M&A | Rice Energy | Rice Midstream

Rice Midstream Investors Hope Deal with EQT Doesn’t Happen
July 7, 2017July 7, 2017

When EQT and Rice Energy announced a deal in June for EQT to buyout and merge in Rice to create the largest natgas-producing company in the U.S., it seemed like a match made in heaven (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). However, not everyone is in favor of the merger, including a corporate raider who know owns nearly 6% of EQT’s stock (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). You can add another group–from the “inside”–that doesn’t want to see the merger happen either: investors in Rice Midstream. Rice Midstream is an MLP, or master limited partnership, a different structure from the usual stockholding corporation. In an MLP, investors hold “units” instead of shares, and those units are tax-advantaged. The bottom line is that Rice Midstream investors are, according to a Bloomberg Businessweek article, concerned that they will get the short end of the stick in a post-merger EQT world. Already the value of their units has fallen 20% since the announcement of the merger. It wouldn’t hurt Rice Midstream investors’ feelings at all if Jana (evil corporate raider) prevents the merger from happening. For Rice Midstream investors, the enemy of my enemy is my friend…
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Energy Services | Patterson-UTI

Patterson-UTI Rig Count Hits New High of 160 in June
July 7, 2017July 7, 2017

As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket up Patterson’s rig count number in April and May (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With the SSE now fully absorbed into Patterson, the rig count number has settled down. In June, Patterson’s count went up by a single new rig in North America, to 160. That is the 13th month in a row Patterson’s rig count has gone up–an astonishing run…
Read More “Patterson-UTI Rig Count Hits New High of 160 in June”
Energy Services | Industrywide Issues | Marathon Petroleum | MarkWest Energy | Ohio | Pipelines | Statewide OH

3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running
July 7, 2017July 7, 2017

In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July–this month. It beat the clock and went live last month (see Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio). MarkWest, now owned by Marathon, issued an announcement yesterday to point out not only is HALI now up and running, but so too are two other liquids pipelines that MarkWest worked to expand: East Sparta to Heath, and Heath to Harpster. Together the three pipelines are moving liquids to refineries throughout the Midwest. Marathon is also working on a project to extend their service for diluents to western Canada…
Read More “3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

PA Big Green Groups Attack Mariner East PR Agency – Too Effective
July 7, 2017July 7, 2017

Totally biased, Big Green-backed mouthpiece StateImpact Pennsylvania, funded in part by taxpayers via PBS (a travesty), as well as funded in part by anti-drilling organizations like the Heinz Endowments and the William Penn Foundation (which appear to control StateImpact’s “reporting”), is targeting a PR agency because the agency has the audacity to do good work for Sunoco Logistics and the Mariner East 2 Pipeline project. You see, in liberal anti-drilling land, it’s OK for antis to smear and lie and fabricate all sorts of falsehoods about pipeline projects–but it’s not OK for the object of those smears (i.e. Sunoco LP) to fight back and to present its side of the issue. As soon as you fight back and tell your side of the story, you’re “targeting” innocent people, you’re attempting to bully the little guy. You’re mean. You’re pedaling fossil fuel death. That’s how it works in Big Green land. A recent article on StateImpact PA attempts a smear job on PR agency Bravo Group because Bravo has the gonads to say this on their website: “We’re helping Sunoco Logistics build public and policyholder support for its Mariner East projects, an infrastructure investment of more than $3 billion. The goal: secure regulatory approvals, neutralize opposition and develop the Mariner East projects on budget and without capital losses.” The “neutralize opposition” phrase in particular set off the anti-pipeline crazies, so StateImpact created an entire story focused on that phrase. You know you’re being effective when they attack you with a smear campaign…
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Belmont County | Energy Services | Ethane | FirstEnergy | Industrywide Issues | Ohio | Processing Plants | PTT Global

PTT Global Buys Land for Belmont, OH Ethane Cracker Plant
July 5, 2017July 5, 2017

Although a final investment decision (FID) is still months away, Thailand-based PTT Global Chemical decided spending $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH, would be a good investment. Which they have now done. The deal, which closed in June, is just now coming to light. PTT bought the land for the site from FirstEnergy Corporation. The deal was recorded at the Belmont County Courthouse on June 14. This is yet another sign that PTT will make a positive FID later this year. Even though PTT just bought the land, work was previously done on the site to clear it and get it ready for construction, as we reported in December (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). Fingers crossed that this $5 billion project gets the go-ahead later this year…
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Baker Hughes | Energy Services | GE Oil & Gas | Industrywide Issues | M&A

Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.
July 5, 2017July 5, 2017

The new Baker Hughes logo, released Monday

As of Tuesday, the world now has its first and (so far) only “fullstream” company–a company that ticks all of the boxes in the oil and gas section–upstream, midstream and downstream. In October 2016 MDN brought you the news that GE Oil & Gas was making a play to buy out and merge in Baker Hughes Inc. (see Breaking: Who Needs Halliburton? Baker Hughes Merging with GE O&G). The merger faced its share of challenges, but compared to Halliburton’s attempt to buy Baker Hughes, which was denied by the Obama Dept. of Justice, this merger was a piece of cake. The newly merged company, flying under the name Baker Hughes, a GE company (NYSE ticker symbol of BHGE) has sailed by oilfield services company Halliburton to become #2 OFS company in the world. It may even be larger that #1 Schlumberger (we haven’t heard yet). As we pointed out in June, this is not some sort of 50/50 merger, this is a takeover/buyout of Baker Hughes by GE. Most of the new top management at the merged company comes from GE (see Baker Hughes, GE Release Roster of Coming Management Changes). Today is the first day the newly merged company’s stock begins to trade. It will be interesting to see at what price it trades…
Read More “Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.”
Energy Services | Industrywide Issues | Keane Group | M&A

Fracker Keane Group Completes Buyout of RockPile Energy for $276M
July 5, 2017July 5, 2017

Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. Last December the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Then in May of this year, Keane announced it is expanding again, buying out fracker RockPile Energy Services for $284.5 million (see Fracker Keane Group Continues Expansion, Buys RockPile Energy). The deal has closed, although for slightly less money than the original announcement. RockPile is no more after merging with Keane for $276 million. RockPile’s former CEO, Curt Dacar, is now the COO (Chief Commercial Officer) at Keane…
Read More “Fracker Keane Group Completes Buyout of RockPile Energy for $276M”
Anti-Drilling/Fossil Fuel | Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

Judge Orders “Eco-Terrorists” to Vacate PA Property, Allow Pipe
July 3, 2017July 3, 2017

MDN has extensively covered the story of a family in Huntingdon County, PA radicalized by the Big Green movement into opposing the Mariner East 2 pipeline across their property. The Gerhart family, with the assistance of what Sunoco Logistics Partners calls “eco-terrorists,” have pledged to illegally block construction of the pipeline. So a few weeks ago Sunoco asked a Huntingdon County judge to grant an injunction against the Gerharts AND the interloping eco-terrorists–to have them forcibly removed if they attempt to stop construction which is about to begin (see Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters). The good news is that late last week the judge granted the injunction. The Gerharts and their eco-terrorist friends will sit their butts in jail if they scarper up a tree to sit, or stand in the way when the bulldozers rev their engines…
Read More “Judge Orders “Eco-Terrorists” to Vacate PA Property, Allow Pipe”
Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Sunoco Logistics

ME2 Begins Building Pipeline in Lancaster County, PA
July 3, 2017July 3, 2017

Click for larger version – Clay & West Cocalico in northern tip

Mariner East 2 (ME2), Sunoco Logistics Partner’s 350-mile NGL (natural gas liquids) pipeline that will run from Eastern Ohio to the Marcus Hook refinery near Philadelphia, has begun construction in northern Lancaster County, PA. Currently the work is getting done in the townships of Clay and West Cocalico. Which is great news. Here’s the even bigger news, that most mainstream news outlets are not reporting: “Officials for the two townships…[said] the pipeline faced no opposition.” Huh. Who woulda thunk? Lancaster County, home of the nutjobs who have threatened to establish an eco-terror camp to block Williams’ natural gas pipeline called Atlantic Sunrise–and yet with ME2, an NGL pipeline, no opposition. Nothing. Of course there are still pockets of resistance to ME2 (see today’s lead story about the eco-terrorists in Huntingdon County). But perhaps lack of opposition to ME2 in Lancaster County is a sign that Big Green is running out of steam (or money to pay protesters)…
Read More “ME2 Begins Building Pipeline in Lancaster County, PA”
Anti-Drilling/Fossil Fuel | Energy Services | Energy Transfer Partners | Industrywide Issues | Michigan | Pipelines | Statewide MI

Mich. Official Says She’ll Stand in Front of Dozer to Stop Rover
July 3, 2017July 3, 2017

A liberal Democrat County from the Washtenaw County, Mich. Board of Commissioners, someone who obviously ignores the rule of law, has pledged to break the law in her misguided attempt to stop Energy Transfer’s Rover Pipeline project from coming through her county. Lib Dems often like to pick and choose which laws they will obey and which they’ll ignore, so we’re not surprised by the mouthy reaction from Commissioner Michelle Deatrick, D-Superior Township. She’s like many other radical anti-fossil fuelers. Michelle is an Al Gore fan and has apparently overdosed on trailers for Gore’s forthcoming Inconvenient Truth Part Deux fictional flick, called “Truth to Power,” because that’s the exact phase she used at a recent board meeting. Here’s what mouthy Michelle had to say…
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Electrical Generation | Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | UGI Energy Services

Marcellus Gas Now Powers Mohegan Sun Casino in the Poconos
July 3, 2017July 3, 2017

Click for larger version

The Mohegan Sun Pocono casino, located near Wilkes-Barre, PA, is now powered by Marcellus Shale gas. On June 20 casino officials along with utility giant UGI and local/state politicians gathered to unveil an all-new co-generation energy plant at the casino. The plant uses Marcellus Shale gas to create electricity. The resulting heat is also trapped and used, to heat water, etc. (the “co” in co-generation). The plant cost $3 million to build. Roughly $1 million from a grant from the Commonwealth Financing Authority. The new plant reduces the Mohegan Sun Pocono casino’s so-called carbon footprint by 3,900 metric tons annually–it’s like taking 820 cars off the road. Here’s the story of how a fossil fuel–Marcellus Shale gas–is helping to clean up the environment, and make it cheaper to run the slot machines, at the same time…
Read More “Marcellus Gas Now Powers Mohegan Sun Casino in the Poconos”
Energy Services | Industrywide Issues | Processing Plants | Velocys

Velocys Leaving Shale Gas GTL Behind, Moving to Biomass BTL
July 3, 2017July 3, 2017

We’ve written a fair bit about Velocys, a UK-based gas-to-liquids (GTL) company, over the past several years (see our stories here). Velocys previously purchased a GTL project planned for Ashtabula, OH, receiving all necessary permits to begin construction, but then put the project on indefinite hold in August 2016 (see Ashtabula, OH GTL Plant on Hold “Indefinitely”). GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and waxes. They are a potential new market for an overabundance of supply in the Marcellus/Utica–hence our keen interest in companies like Velocys. Last December the company released a plan to “jump-start” the company (see GTL Vendor Velocys Releases Plan to Jump-Start the Company). Nowhere did we see mention that Velocys was thinking about abandoning their GTL focus, but NGI is now reporting the company is “suspending” its work and focus on GTL and instead is pivoting to work on “woody” biomass-to-liquids (BTL) instead. What’s woody biomass? Turning discarded trees and tree limbs into things like diesel fuel. Why the pivot? Because the company thinks it can score big money from the government to fund it…
Read More “Velocys Leaving Shale Gas GTL Behind, Moving to Biomass BTL”
Enbridge | Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Enbridge Withdraws $3B Access Northeast Pipeline Application
June 30, 2017June 30, 2017

Last December Spectra Energy pushed the pause button on their Access Northeast Pipeline project, a roughly $3 billion project in New England to connect four existing pipeline systems (with enhancements): Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast (see Spectra Energy Puts Access Northeast Pipe to New England on Hold). Spectra’s original strategy was to bring natural gas to New England by cutting deals with electric companies who need the gas to produce cheaper electricity at their natgas-fired power generation plants. However, the green environmental Nazis came out in force against the plan, (sadly) aided and abetted by Spectra’s competitors, and those plans are now in ruins with three states blocking any such plans. So Spectra changed strategies, targeting local natural gas distribution companies (LDCs) as potential customers (see Spectra Energy Changes Strategy re New England Pipeline). Spectra needs customers to sign on the dotted line–committing to long-term contracts–before they can raise the funding and build the project, so they pushed the pause button last December. Since that time, Spectra completed selling itself to Enbridge (see Spectra Energy is No More – $28B Merger with Enbridge Complete). So just to confuse things, the Access Northeast project is now an Enbridge project. Yesterday Enbridge sent a letter to the Federal Energy Regulatory Commission, the agency that oversees such projects, to officially withdraw the application. But the project is NOT dead. Enbridge says they will be back to file again–once the New England states get their energy policy crap together…
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Broome County | CNG/LNG | Energy Services | Industrywide Issues | Litigation | New York | NG Advantage

Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off
June 29, 2017June 29, 2017

Tractor Trailer NG proposes to use at Fenton location – Click image for full size version

MDN editor Jim Willis attended one of the information sessions offered by NG Advantage at the Port Crane fire hall last night. NG Advantage is making a concerted effort to dispel false rumors and misunderstandings on the part of neighbors who live near a proposed “virtual pipeline” site that is a series of compressor stations grabbing gas from the Millennium Pipeline in a Binghamton suburb, compressing it and loading onto tanker trucks. Jim knew it was going to be an interesting night when he arrived at 7:15 pm to find a packed previous session that began at 5 pm was still going strong. Jim wandered to the back of the facility (in the parking lot) to view one of the tanker trucks that NG hopes to have accessing the facility (see our pic). In fact, two of these trucks each and every hour of the day will enter and leave the facility, some 50 trucks per day, on average, according NG officials. As Jim approached the truck, a woman also walking in the same direction said loudly, “My God! Look how BIIIIIIGGGG it is!” Like she’d never seen a tractor trailer before (actually, it’s shorter than a standard trailer). Since no one else was close to her, Jim assumed she said it for his benefit–likely hoping he would join in and agree. Jim said nothing. The same woman grilled the NG rep standing there, asking how many trucks per day, etc. And then she said, “I’m against this–I’m just glad there’s now a stop work order,” which was the first we had heard the news (more on the stop work order below). The woman’s demeanor and her ebullience that the project is now halted was an early signal: Jim knew he was in for a long night of high emotion from local residents who don’t want the facility, largely because of truck traffic. Jim was right…
Read More “Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?
June 29, 2017June 29, 2017

The New Jersey Dept. of Environmental Protection (NJDEP) sent PennEast Pipeline a letter yesterday saying they have closed the application for water-crossing permits for the project–without granting those permits. In April the NJDEP temporarily rejected the permits, giving PennEast another 60 days to respond to requests for more detailed information about the project (see NJ DEP Temporarily Rejects PennEast Request for Wetland Permits). The NJDEP says PennEast isn’t making sufficient progress and so they are simply closing the book on it. Which may sound like the end of the line for PennEast. That is, if you read statements by radical environmentalists like Jeff Tittel from the Sierra Club. Except it’s not game over. PennEast says, in essence, “No problem. Thanks anyway. We’ll be back and refile the application shortly.” Which they can do. Below is a copy of the letter from the NJDEP, some select (biased) coverage from anti-fossil fuel mainstream media, and a full statement from PennEast, to set the record straight…
Read More “NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Ohio | Patriot Water Treatment | Trumbull County | Wastewater

Radical Enviro Group Sues Warren Frack Wastewater Plant
June 29, 2017June 29, 2017

The Fresh Water Accountability Project, an anti-fracking group based in Michigan, has filed a frivolous lawsuit against the Patriot Water Treatment facility and the City of Warren, OH, claiming they are processing frack chemicals at their plants that don’t get processed enough–and consequently get released into the Mahoning River. This is not Patriot Water’s first time in court. Patriot has had a long-running feud with the Ohio EPA and Ohio Dept. of Natural Resources (ODNR)–a feud that goes all the way back to 2011 (see MDN’s string of Patriot Water stories here). Patriot processes frack wastewater at it’s Warren plant and then disposes of the wastewater by using the local Warren municipal sewage treatment plant. That is, Patriot strips out all of the really nasty stuff, and then the sewage plant finishes off the process and the water is then released into the Mahoning River, near Youngstown. The OH EPA and ODNR pulled Patriot’s permits to operate for a four-month period in 2012, but Patriot sued and won the right to continue operating, sending their wastewater to the sewage plant. Everything is legal. So now a non-profit group, Fresh Water Accountability Project, is going to try and shut down Patriot with a new lawsuit. If Fresh Water Accountability loses, can we shut them down? At the very least, their tax-exempt status should be stripped away for engaging in overtly political activities…
Read More “Radical Enviro Group Sues Warren Frack Wastewater Plant”