Statewide OH

American Energy Partners | Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Aubrey McClendon: Utica Shale ‘Man in Motion’
March 11, 2014March 11, 2014

If you (foolishly) believed the stories about Aubrey McClendon and his oversight of the company he co-founded, Chesapeake Energy, you would believe that after he was bounced out of the company no one would ever again give him a dime. Under McClendon, supposedly Chessy spiraled out of control with debt and mismanagement. McClendon was cast as a maverick–a wildcatter who threw money around on $300 champagne lunches and managed to grow the company beyond his ability to run it. The problem with that view is the truth of what’s happened to Chesapeake since McClendon’s departure. Corporate raider Carl Icahn is the one controlling Chessy these days–for his own personal benefit. Icahn and his lieutenant CEO Doug Lawler have sold off key assets right and left and fired thousands–actions that don’t have squat to do with improving the financial health of the company. It only improves Icahn’s per share value.

McClendon, less than a year from being unceremoniously dumped by Icahn, has a new company with $3 billion of OPM (other people’s money) in his hip pocket to spend on drilling “at least” 1,600 Utica Shale wells in Ohio. McClendon’s new venture, called American Energy Partners, has already amassed 260,000 acres of leases in less than a year, on which to drill those 1,600+ Utica wells. McClendon right now has drilling rigs on the job in Ohio. The man does not let any grass grow under his feet (or on his drill pads). Here’s an update on Aubrey McClendon, a Utica Shale man in motion…
Read More “Aubrey McClendon: Utica Shale ‘Man in Motion’”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Taxation | West Virginia

Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV
March 11, 2014March 11, 2014

Socialists and hardened anti-drillers are trying a new approach. Adopt non-partisan sounding names, like the “Pennsylvania Budget and Policy Center,” “Policy Matters Ohio,” and “West Virginia Center on Budget and Public Policy,” and use those names to try and pass a high severance tax across all three states–effectively killing drilling. Those groups are some of the most partisan in existence. If Socialist politicians like OH State Rep. Robert Hagan (Democrat anti-driller) of Youngstown, OH can’t stop drilling, they want to profit from it by “spreading the wealth around” in classic socialist fashion. Tax drilling at high rates, then redistribute the money to people who will continuously vote said politicians back into office over and over. That’s how it works. Enslave people on public welfare handouts and buy their votes. It’s sick, anti-American, and corrupt.

Various politicians like Hagan, flying under the banner of the groups named above, are now preening about advocating a “common sense” and “uniform” severance tax of 5% (minimum) across PA, OH and WV. Such a stupid idea would immediately tank the economic miracle happening in PA. You WANT states competing against each other for shale drilling–lowering and even eliminating taxes. Everyone wins when states compete–it keeps natural gas prices low for consumers, benefits landowners in that state, generates thousands of jobs and millions of dollars in local and state tax revenues. A high severance tax is not needed. So when you read about this so-called “fair” proposal, you know what it really is: a naked political power grab meant to empower corrupt politicians to retain their hold on power…
Read More “Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV”
Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

OOGA’s DeBrosse Report: Utica Drilling Ramps Up in 2013
March 10, 2014March 10, 2014

Each year the 3,200-member Ohio Oil and Gas Association (OOGA) issue the DeBrosse Memorial Report. The report is a high level look at where (and how much) drilling there has been in the state–and what they’re finding (methane, oil, NGLs). OOGA’s Peter MacKenzie presented the findings of the latest DeBrosse Report at last week’s OOGA Annual Winter Meeting in Columbus. According to MacKenzie, the data in this year’s report, “should get people’s attention,” saying it sure got his.

OOGA supplied us with a copy of the report to share with MDN subscribers (full copy embedded below). It’s chock full of great maps and charts and statistics about oil and gas drilling in Ohio. The numbers (and maps) show the dramatic impact Utica Shale drilling has had. First up are some of the highlights as shared by the Akron Beacon Journal, followed by the full report…
Read More “OOGA’s DeBrosse Report: Utica Drilling Ramps Up in 2013”
Economic Impact | Industrywide Issues | Jobs | Mahoning County | Ohio | Pennsylvania | Statewide OH | Supply Chain | Utica Shale | Warren County

Utica Shale Drilling Ripple Effect in Northern Part of Play
March 10, 2014March 10, 2014

Just because you don’t see a drilling rig and holes being drilled in the ground, it doesn’t mean Utica Shale drilling isn’t having enormous, positive economic benefits in a community. So says Youngstown-Warren Regional Chamber officials. They point to the hundreds of permanent new jobs at area manufacturers–jobs created and sustained directly by the drilling industry.

More on the Utica supply chain and how it’s benefiting areas that haven’t (yet) seen their own Utica wells drilled…
Read More “Utica Shale Drilling Ripple Effect in Northern Part of Play”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Trumbull County | Utica Shale

Drilling Shifts South in OH Utica Shale + More on Halcon Exit
March 6, 2014March 6, 2014

There is no doubt Utica Shale drilling in eastern Ohio has made a transition. Once upon a time Chesapeake (and a few others) looked to places like Columbiana, Mahoning and Trumbull counties. Carroll County is still quite active with drilling, but much of the new drilling has drifted south, to places like Harrison, Guernsey, Belmont, Noble and Monroe counties, as evidenced by the latest round of permits issued by the Ohio Dept. of Natural Resources. To the north in places like Trumbull? Not so hot anymore. Two days ago we told you about Halcon Resources’ decision to say adios to Trumbull County (see Halcon Resources Stops Drilling, Gives Up on the Utica Shale).

The shift southward and Halcon’s exit doesn’t seem to concern one of Halcon’s contractors, Kleese Development Associates, that hauls Halcon’s frack wastewater to area injection wells. Below are two articles: one illustrates the shift south in permits for new wells, and one that interviews Kleese, providing us with a bit more insight into Halcon’s decision to stay away from the Utica, for now…
Read More “Drilling Shifts South in OH Utica Shale + More on Halcon Exit”
Access Midstream Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants
March 5, 2014March 5, 2014

Chesapeake Energy continues to sell off bits and pieces of the company, making corporate raider (and the company’s second largest investor) Carl Icahn happy. The latest ballast to go over the side are 103 “compression units” in the Marcellus/Utica region, purchased by Access Midstream (which used to be Chesapeake Midstream before it was tossed over the side too), and 334 “compression units” scattered throughout the south, southwest and west, sold to Exterran Partners. Total proceeds for Carl Icahn, er Chesapeake? $520 million.

Here’s the announcement from Chesapeake, followed by the announcement from Access Midstream about their “bolt-on” acquisition…
Read More “Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Landfills | Ohio | Statewide OH | Supply Chain | Utica Shale

OH Anti-Drilling Nutters Prevent Safe Disposal of Drill Cuttings
March 5, 2014March 5, 2014

Score a win for the anti-drillers in Ohio. They have successfully blocked a promising new technology by lying about what it does and can do for the drilling industry. Last September MDN told you the story of an innovative new Ohio company–Ohio Soil Recycling (OSR)–that has figured out how to turn shale drill cuttings (leftover rock and dirt) into clean fill dirt–in 24 hours flat (see OH Company Turns Drill Cuttings into Clean Fill Dirt in 24 Hours). Because some drill cuttings (some, not all) contain very low levels of naturally occurring radioactivity, a fanatical group of nutters called Radioactive Waste Alert (RWA) went on a PR rampage using a big, lying billboard ad to try and suppress this promising new technology (see Radioactive Bilge Emanates from ‘Radioactive Waste Alert’ in OH).

Once again headlines and soundbites rule the day as RWA now claims they have successfully stopped OSR. It’s a sad day–the RWA has made everyone in Ohio less safe than they could have been. But such is the twisted worldview of anti-drilling nutters like those in the RWA. Here’s the “we’re crowing about screwing OSR” announcement from RWA:
Read More “OH Anti-Drilling Nutters Prevent Safe Disposal of Drill Cuttings”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Halcon Resources Stops Drilling, Gives Up on the Utica Shale
March 4, 2014March 4, 2014

Just last November in response to a question from an analyst about Halcon Resources’ plans for the Utica, CEO Floyd Wilson said, “Well, we won’t drill any more wells near the shitty ones we drilled already. That’s one major initiative.” (See Halcon CEO Says No More S***** Wells in Northern OH Utica.)

Not only will Halcon not drill any s***ty wells in the Utica, they’re not going to drill any more Utica wells–at least in 2014…
Read More “Halcon Resources Stops Drilling, Gives Up on the Utica Shale”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

OH Anti-Drillers Call for ODNR Chief’s Resignation Over PR Plan
March 4, 2014March 4, 2014

A few weeks ago we told you about the Ohio Dept. of Natural Resources’ brilliant communications plan to counter the wackos in their state on the issue of drilling under (not on) one state forest and two state parks (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). We also told you that this issue won’t go away for a while, and that Gov. John “foreigner hunter” Kasich has already backed down (see The Disgusting PR Mess in Ohio – No One Smells Pretty). As we predicted, the wacko contingent in Ohio never lets a good manufactured crisis go to waste, and so now a group of the nuttiest of the nuts is calling for the resignation of ODNR chief James Zehringer.

The only problem is, Kasich & co seem to be so intimidated by these kooks, you have to wonder if he’ll cave and make Zehringer a sacrificial lamb on the green altar…
Read More “OH Anti-Drillers Call for ODNR Chief’s Resignation Over PR Plan”
Energy Companies | Enerplus | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP 2014 – Still Shifting from E&P to Midstream in the Utica
March 4, 2014March 4, 2014

Quick: Which company holds the most combined Utica Shale acreage in OH & PA? Is it Chesapeake? Range? Chevron? Nope. It may surprise you that the #1 acreage holder, according to NGI’s Shale Play Factbook, is EV Energy Partners (EVEP). They own outright, or as part of joint ventures, interest in 903,000 Utica Shale acres (747,000 in OH and 156,000 in PA). MDN has long chronicled how this “accidental” Utica kingpin has been trying to unload their Utica acreage, first in big deals, later in smaller deals (see our EVEP category of stories here).

EVEP is certainly not leaving the Utica. They just want to unload the E&P part of their operation (drilling) and instead concentrate on the midstream (pipelines & processing plants). Yesterday the company issued their fourth quarter and full year 2013 update and management conducted the ubiquitous analyst phone call to explain where the company has been in 2013 and where they are heading in 2014. We have both the update and a portion of the phone call transcript below. Bottom line: More emphasis on midstream in 2014, continued Utica drilling (via jv partners like Chesapeake and EQT), and more sales of Utica acreage when/if buyers come along…
Read More “EVEP 2014 – Still Shifting from E&P to Midstream in the Utica”
Antero Resources | Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Antero Resources & Gulfport Energy’s Utica Shale High Notes
March 4, 2014March 4, 2014

In recent weeks as part of a flurry of year end and fourth quarter financial and operational reports, MDN brought you the latest news from Marcellus and Utica Shale powerhouse driller Antero Resources (see Antero Resources Keeps up the Pace in the Marcellus/Utica). We also told you the latest from Gulfport Energy, including our “takeaways” (see Gulfport Production & Profits Jump in 2013 Thanks to Utica Shale).

The Intelligencer/Wheeling News-Register reporter Casey Junkins has done a great job of summarizing the highlights from both companies–hitting the “high notes” as it were, particularly with respect to the Utica Shale–in the following update:
Read More “Antero Resources & Gulfport Energy’s Utica Shale High Notes”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Production & Profits Jump in 2013 Thanks to Utica Shale
February 27, 2014February 27, 2014

Gulfport Energy is one of the leading drillers in the Utica Shale, so when they issue press releases and updates, as they did yesterday, it’s news for MDN. Gulfport issued their fourth quarter and full year 2013 financial and operational update yesterday. We’re including the full thing below, which contains a fair bit of mind-numbing financial numbers (meaningful to investors and traders, not so much for the rest of us). However, sometimes you spot a few gems in all those numbers and in the narrative that accompanies them. We believe we have in this most recent update…
Read More “Gulfport Production & Profits Jump in 2013 Thanks to Utica Shale”
Energy Companies | Gulfport Energy | Ohio | Rhino Resource Partners | Statewide OH | Utica Shale

Rhino Dumps the Rest of its Utica Assets in Deal with Gulfport
February 27, 2014February 27, 2014

Oil and gas deals are sometimes complicated–more complicated than we can get our brains around. That’s our disclaimer for this bit of news. In 2012 Rhino Resource Partners, a coal company, decided to get in on some of the shale action in the Utica by investing in a joint venture with Gulfport Energy and Wexford Capital (see Rhino Resource Ups Investment in Utica Shale JV). Rhino doesn’t do any of the exploration, drilling or production. It’s just a partnership granting them a piece of the revenue action in return for investing in the operation. Somewhere along the way Rhino either got cold feet, or (more likely) the company hit a rough patch and needed money, because they sold 20% of their royalty interests in the jv (see Rhino Flips 20% of Utica Investment to Undisclosed 3rd Party). Further supporting our theory the company is cash-strapped, in September last year the company tried to sell 1.1 million of “common units” (equivalent of stock) to generate money to pay back loans (see Rhino Resources Issues 1.1M Common Units to Repay Debt).

Yesterday, as part of Gulfport’s update and also in a separate announcement from Rhino, comes word that Rhino has cut a deal with Gulfport to dump the rest of its interest in the Utica jv to Gulfport for $185 million, raising what appears to be much-needed cash for Rhino. Here’s the twin announcements:
Read More “Rhino Dumps the Rest of its Utica Assets in Deal with Gulfport”
Chesapeake Energy | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Utica Shale | West Virginia

Chesapeake 2013 & Beyond: Lack of Pipelines Still a Big Problem
February 27, 2014February 27, 2014

Yesterday Chesapeake Energy issued their fourth quarter and full year 2013 operational and financial results. Chessy’s CEO, Doug “the ax” Lawler is all proud of himself for having fired over 1,200 employees, saving the company all that money (money that goes into Carl Icahn’s bank account). Whatever. For all of our disgust with what Chesapeake has become because of Icahn and his corporate raiding practices, it’s still a very important driller in the Marcellus and Utica (as well as other plays), and will continue to be so. When they issue an update, we need to pay attention, because as Chessy goes, so goes the Marcellus and Utica, in some senses.

What does yesterday’s update show? Chessy has drilled a lot of wells in the Utica–425 so far, more than half of the 747 Utica wells drilled to date in Ohio. Of those 425, 230 are online and producing, but a huge 195 wells are still waiting to be hooked up to pipelines. Lack of infrastructure is still a big issue in the Utica and in the Marcellus. In the northern Marcellus area (northeast PA) Chesapeake has 112 wells waiting to be connected to pipelines. They’ve scaled back their drilling in NEPA somewhat over the past year. In the southern Marcellus (SWPA and WV) Chesapeake has 47 wells waiting to be connected to pipelines or otherwise completed. Here’s the operations update for both the Utica and Marcellus from Chessy’s announcement yesterday:
Read More “Chesapeake 2013 & Beyond: Lack of Pipelines Still a Big Problem”
American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

Aubrey McClendon’s Wandering Eye: Now Loves a Second Shale Play
February 26, 2014February 26, 2014

Does Aubrey McClendon have a wandering eye? Is he a shale play philanderer? It seems to us that since Aubrey was shown to the door of his own company (Chesapeake Energy) last year by corporate raider Carl Ichan, the only word to come out of Aubrey’s mouth has been “Utica.” It’s been Utica this and Utica that. He’s now raised more than $2.9 billion (!) for Utica Shale land acquisition and drilling (see McClendon Hauls in Another $1.2B, Utica Shopping Spree Continues).

But what’s this? Another shale play–closer to home (in Oklahoma)–seems to have caught Aubrey’s fancy and he’s now engaging in a dalliance back home. He’s already raised a cool $680 million for his new shale mistress…
Read More “Aubrey McClendon’s Wandering Eye: Now Loves a Second Shale Play”
Economic Impact | Hydraulic Fracturing | Industrialization | Industrywide Issues | Jobs | Ohio | Public Opinion | Research | Statewide OH | Utica Shale

Survey Says! OU Survey of Local OH Officials on Utica’s Impacts
February 26, 2014February 26, 2014

Two days ago the Ohio University Voinovich School of Leadership and Public Affairs released the findings of its much anticipated Ohio Shale Development Community Impact Survey. During summer of 2013, the Voinovich School distributed more than 500 surveys to local elected officials across 17 counties experiencing the majority of shale activity and development in Ohio. The survey assesses the impact of shale development within 17 counties in eastern Ohio, with a focus on population, housing, public safety, infrastructure, environment, local employment, area business activity, and economic development. Some 200 of those surveys were returned and the data tabulated.

What did the survey find? Ohio’s local elected officials say Utica Shale drilling has caused an marked increase in jobs and the occupancy rate at hotels. But Utica drilling has also caused some pollution issues and a big increase in the demand for water supplies. This is a very interesting study (full copy embedded below)…
Read More “Survey Says! OU Survey of Local OH Officials on Utica’s Impacts”