Energy Services

Industrywide Issues | Nine Energy Services | Supply Chain

4 Companies Merge to Form New Oilfield Services Firm
June 23, 2014June 23, 2014

A new competitor for Halliburton and Baker Hughes? Maybe! Four oilfield services companies, some of which have operations in the Marcellus/Utica, have combined to form a new company. The four companies are: Northern States Completions, Tripoint LLC, CDK Perforating and Integrated Production Services Canada. The new company is called Nine Energy Service and is headquartered in Houston, TX. Why the unusual name Nine? It’s aspirational. On a scale of 1-10 with 10 being perfect, they aspire to be a 9, which is about as good as you can get. Hence the name, which is kind of cool. Here’s the press release announcing the merger of the four into one with hopes of becoming a nine…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Orange County | Pipelines

NY Anti-Driller Claims Compressor Station Causing Son’s Asthma
June 20, 2014June 20, 2014

A small group of virulent anti-drillers from New York City, who flee the city on the weekends and live in places like Orange County, NY, are once again slandering Marcellus drilling in New York State by targeting industry-related initiatives like pipeline compressor stations. To wit: A family who opposed the compressor station built by the Millennium Pipeline in Minisink, NY (southwest Orange County) now claim their 16-year old son has had a “sudden onset” of asthma which occurs only when they flee the city for the weekends to their summer home in Minisink. They conveniently blame the compressor station. What to do? Hire a so-called consultant to address a small group in the area, get a local reporter to show up and regurgitate a whopping pack of lies to scare everyone who reads the local rag…
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Economic Impact | Energy Services | Industrywide Issues | M&A | Pennsylvania | Statewide PA | UIL Holdings

Phila. Gas Works Deal in Jeopardy Due to Vacationing City Council
June 20, 2014June 20, 2014

In March, the Democrat mayor of Philadelphia, Michael Nutter, announced a deal to sell the city-owned Philadelphia Gas Works (PGW) for $1.86 billion (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility, is the potential buyer. However, it didn’t take long for the union and a former Enron executive to make a play to screw the deal (see Former Enron Exec Makes “Unethical” Play to Derail PGW Deal). City Council has had three months to review the deal put together by Nutter, but now they’re heading out of town on summer vacation and not coming back until September. Will UIL stick around that long?…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Lib MA Town Tells Tenn. Gas Pipeline: Stay Outta Town!
June 20, 2014June 20, 2014

Taking the law into his own hands, as fascist liberals typically do, Andover, MA Town Manager Reginald “Buzz” Stapczynski sent a letter to officials at the Tennessee Gas Pipeline telling them to keep their people the h— outta town–at least that was the sentiment expressed. Such nice, tolerant, peaceful people those anti-drilling libs, aren’t they? Just lovers of all mankind, willing to listen to any harebrained viewpoint–until it’s a viewpoint that doesn’t match theirs. Then the baseball bats come out…
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Energy Companies | Industrywide Issues | Pipelines | Processing Plants | Shell | Shell Midstream Partners

Shell Files IPO to Spin Off Midstream/Pipelines into MLP
June 19, 2014June 19, 2014

While Aubrey McClendon and his financial partner EMG are getting back into the midstream/pipeline business (see today’s story about getting the band back together), Royal Dutch Shell is getting out of the midstream business. Well, not exactly getting out–but Shell announced yesterday that the company has filed paperwork with the Securities and Exchange Commission to create a pipeline subsidiary called Shell Midstream Partners. The new company would have a master limited partnership (MLP) structure, which floats something akin to, but different from, shares of stock. They’re called units and the reason for spinning it out as a separate company under the MLP banner is tax-related. According to the paperwork Shell has filed, they anticipate raising up to $750 million in unit sales. Will Shell, via this new subsidiary, own any pipelines in the Marcellus/Utica?…
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Energy Services | Industrywide Issues | Ohio | Pipelines | Rockies Express Pipeline | Statewide OH

Rockies Express Pipeline Reverses Flow from Utica to Midwest
June 19, 2014June 19, 2014

Nearly a year ago MDN tipped you off that the Rockies Express (REX) Pipeline would reverse at least part of its flow and start sending natural gas from the Utica/Marcellus to the Midwest (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). That momentous day has arrived. As of today, a new 14.3-mile lateral is flowing gas north from the MarkWest Seneca natural gas processing plant to the REX mainline, where a newly built compressor station will allow the gas to be delivered to points west in Ohio, Indiana, and Illinois. Eventually the gas may also go to Missouri…
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Energy Services | Fluid Delivery Solutions (FDS) | Industrywide Issues | M&A | Supply Chain

Fluid Delivery Solutions Gets New Owner: Trilantic Capital
June 19, 2014June 19, 2014

Fluid Delivery Solutions LLC (FDS) is an oilfield water management company primarily delivering and storing fresh water to drillers in major shale plays, including the Marcellus and Utica. Yesterday FDS announced they have a new owner: Trilantic Capital Partners, a global private equity firm. The amount of the financial transaction was not disclosed. However, FDS current CEO Dan Dunkelberg and his existing management team will remain at the helm of FDS. So why sell?…
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Crestwood Midstream | Energy Services

Crestwood Midstream Puts Another $500M in the Bank
June 18, 2014June 18, 2014

An investors’ group that includes Magnetar Capital, GSO Capital and GE Energy Financial Services, a GE subsidiary, is investing $500 million to get “preferred units” (think shares of stock) of Crestwood Midstream Partners. Some of the money will be used to pay down debt. However, some (much?) of the new money will go to finance ongoing expansion and development projects in the Marcellus and several other shale plays…
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Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Pipelines | Processing Plants | Williams

Williams/Access Midstream Deal Continues to Reverberate
June 17, 2014June 17, 2014

The news continues to roll in about the proposed merger/buyout between Williams and Access Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). As MDN reported yesterday, such a merger has the potential to create the country’s largest midstream company (by market capitalization), potentially displacing Kinder Morgan from that lofty throne. The stock market certainly likes what it sees in the proposed merger. Williams’ stock ended trading yesterday up 19% in a single day, closing at $56.02 per share. More on the proposed deal and what Williams CEO Alan Armstrong said yesterday about it…
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Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Williams

Big News: Williams Partners Buying Access Midstream for $6B
June 16, 2014June 16, 2014

Really big news in the midstream (pipelines & processing plants) world, not only for the Marcellus and Utica Shale, but for other major U.S. shale plays as well. Williams announced yesterday (Sunday!) that they are buying Access Midstream for $6 billion (actually $5.995B, but we’re rounding it up). Access, you may recall, is the renamed and former division of Chesapeake Energy called Chesapeake Midstream (see Chesapeake Midstream Changes Name to Access Midstream).Williams says they will pay for half of the purchases with “equity,” meaning ownership via stock and shares in Williams, and the other half with debt borrowing and cash on hand in the kitty. The proposed merger is expected to be completed later this year. What does it mean for the Marcellus/Utica?…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

Atlantic Sunrise Changes Course in Lancaster County, PA
June 13, 2014June 13, 2014

Once again anti-drillers who were denied the chance to bleat and blat before a microphone behaved like the adult babies they are–by staging a “sit in” and chanting at an open house hosted by Williams to talk to landowners and others about the much-needed and excellent Atlantic Sunrise Expansion pipeline project. This particular misbehaving group was composed of anti-drillers and hippies from Lancaster County, PA, not dissimilar (maybe some of them the same) as those from neighboring Lebanon County (see Lebanon, PA Group Coaches Blind Followers to Oppose Pipeline). When denied a public forum to act like asses, anti-drillers go ahead and make asses of themselves anyway. And that’s just what a group calling themselves Lancaster Against Pipeline did Wednesday night. Meanwhile, the adult and sane-acting Williams representatives announced they heard the concerns about the route in Lancaster County and have changed the route to avoid going through a couple of nature preserves…
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | West Virginia | Wetzel County

EQT Announces New Marcellus/Utica Pipeline to Southeastern US
June 13, 2014June 13, 2014

Yesterday CONSOL Energy and Noble Energy announced a new gathering pipeline company plan (see MDN’s story published today). Not to be outdone, EQT announced yesterday an open season for the Mountain Valley Pipeline project–a new Marcellus/Utica pipeline. According to the announcement, EQT and NextEra US Gas Assets intend to build a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA to deliver abundant, cheap Marcellus and Utica Shale gas to markets throughout the southeast. An “open season” is a chance for drillers to contract a portion of the pipeline over the long term (15-20 years), commitments needed before companies like EQT will pony up the hundreds of millions needed to build a major project like this one…
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Access Midstream Partners | Energy Services | EnLink Midstream | Industrywide Issues | Ohio | Stark County | Statewide OH | Supply Chain | Utica Shale

Important Supply Chain Takeaways from Chamber Midstream Meeting
June 13, 2014June 13, 2014

The Canton, OH Regional Chamber of Commerce recently hosted the Midstream Ohio 2014 event to help connect companies seeking to sell to the Utica drilling industry with those drilling and building pipelines. By all accounts it was a huge success for both sides. Here’s some great takeaways from the event, to help supply chain companies that want to sell, or sell more, to the Utica industry:
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Energy Services | Industrywide Issues | Landfills | MAX Environmental | Pennsylvania | Regulation | Washington County

New Landfill Expansion in SWPA Aimed at Marcellus Drillers
June 12, 2014June 12, 2014

Max Environmental has operated the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958. The company plans to expand the landfill by 21 acres in order to handle an increase of drill cuttings and even liquid waste (which they will turn to solid waste) coming from Marcellus Shale drilling. First up is a public information meeting (sure to be a must-attend, and controversial) being held later this month. Then Max will file a formal application with the PA Dept. of Environmental Protection. Max officials say it will likely take a good five years to receive a permit–such is how mind-numbingly slow the regulatory wheels turn these days…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Transco | Williams

Williams’ Smart Open House in Lebanon County Confounds Antis
June 11, 2014June 11, 2014

Anti-drillers are so predictable. When they’re denied a public forum where they can squeal and moan and put on a “look at me” show, they get all testy. Which is why the way Williams conducts their public open houses is so utterly brilliant. Instead of hosting the typical “3 people on the stage addressing the crowd” followed by an open microphone where anti-drilling zombies get up to read their talking points, Williams sends about 75 representatives to a local school or fire house, rolls out miles of maps, and talks one-on-one with residents–to address specific questions and concerns. That’s the way they did it last night at the Annville-Cleona High School (Lebanon County, PA) with the Atlantic Sunrise Expansion project. And sure enough, anti-drillers from the so-called “Lebanon Pipeline Awareness” complained they couldn’t show off their drama skills at the meeting last night…
Read More “Williams’ Smart Open House in Lebanon County Confounds Antis”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Coordinated Media Attack on Williams Atlantic Sunrise Pipeline
June 11, 2014June 11, 2014

It appears there is a coordinated attack by both national and local media against Williams and their Atlantic Sunrise Expansion project. We’ve located one Associated Press story that’s been endlessly published in local newspapers, and one anti-drilling screed by a Lancaster County, PA newspaper, that says, in essence, Williams paid more fines in PA last year than any other pipeline company; Williams wants to build a new pipeline; ergo, Williams should not be allowed to build it because they’re a bad actor…
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