19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica
David 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?…
Read More “19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica”
Is Pennsylvania Gov. Tom Wolf an extortionist? Or is he just dumb? Last week, in response to a reporter’s question about his proposed severance tax and what might happen if it doesn’t pass the legislature, Wolf said this: “You know, the alternative is not really no tax… the alternative is no drilling – a ban as in the case of New York” (see 
There is an effort underway–a serious effort–for towns along the border in some upstate New York counties to secede from New York State and join Pennsylvania. Why? Because of New York’s ban on hydraulic fracturing. And no, this is not an early April Fool’s joke. MDN first started hearing of secession talk shortly after Gov. Cuomo’s disgraceful cabinet meeting in which he let bootlickers Howard Zucker (State Health Commissioner) and Joe Martens (DEC Commissioner) take the fall for a ban on fracking–a ban Cuomo himself wanted. We saw some signs and heard a few mentions of secession and chalked it up to understandably high emotions over Cuomo stealing away their future. But it seems it’s not just so much hot air. A group called the Upstate New York Towns Association has done some polling and found 15 towns along the border area of NY are ready to make the leap. There are, however, some major hurdles in the way…
Along with acquiring Access Midstream (formerly Chesapeake Midstream), Williams has just acquired a brand new lawsuit. Two Bradford County, PA law firms along with a New Jersey law firm on Tuesday filed a RICO (Racketeer Influenced and Corrupt Organizations Act) lawsuit on behalf of 90 landowners in Bradford County against Chesapeake Energy and Williams Partners (because Williams is now the owner of what was Access Midstream) claiming Chessy and Williams/Access conspired to defraud landowners of royalty money by deducting post-production expenses they had no right to deduct…
Anti-drillers are an interesting (and hypocritical, perhaps schizophrenic) bunch, as we’ve pointed out many times. They eschew “dirty” fossil fuels, yet they use fossil fuels every day, from the moment they wake up to the moment they go to bed (and even while they’re sleeping). Take the anti-drillers in Pennsylvania. A story mainstream media refused to report was the fact that the PA State Democrat Party–the home of anti-drillers in the Keystone State–passed an official plank in their platform in June 2013 ahead of the election for governor that would place an ongoing moratorium on all new Marcellus Shale drilling in the state (see