Rex Energy 2Q17: Sells Waterline, Deal with BP to Market NGLs
Earlier this week Rex Energy issued its second quarter 2017 update. During 2Q17 Rex drilled 2, completed 6 and put online into sales 4 wells in their Butler County, PA acreage. They also began drilling a new 4-well pad in Butler. In the company’s Carroll County, OH acreage, Rex drilled a 3 wells on a single pad. The big news from the update was a deal with BP to market Rex’s natural gas liquids (or C3+) production, and the sale of a water pipeline owned by Rex in Salineville, OH for $8 million. Rex’s finances didn’t do so well. In 2Q17 the company lost $10 million versus making a $16 million profit in 2Q16. Production picked up a bit, from 173.4 million cubic feet equivalent per day (MMcfe/d) in 1Q17 to 177.1 MMcfe/d in 2Q17. The official statement said 2Q17 production was “constrained” during the quarter “due to unplanned maintenance downtime in the company’s midstream services.” Which means they had hoped it would have been higher than 177.1 MMcfe/d. Looking forward to 3Q17 Rex says they plan to bring 12 new wells in Butler County online…
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Rex Energy began selling natural gas, gas liquids and condensate from its four newest wells, part of the “Baird” pad (in Butler County, PA) on May 31st. The company issued a press release yesterday to do some well-deserved crowing about their wells. Two of the wells (the 1H and 4H) are Marcellus wells and initial production is averaging 12.1 million cubic feet equivalent per day (Mmcfe/d). The other two wells (the 2H & 3H) target the Upper Devonian layer and initial production for those wells has been 8.1 Mmcfe/d. Rex also posted a new company PowerPoint presentation (full copy below) which shows a new 6-well pad in Butler County will go online to sales in August, another 4-well pad in September, and a 2-well pad and 4-well pad sometime in the fourth quarter. In addition, Rex expects to begin drilling a 3-well pad in the Ohio Utica (in Carroll County) in July…
THE Delaware Riverkeeper (i.e. Maya van Rossum) and a small group of anti-drilling parents from the Mars School District (“Martians”) in Butler County, PA, have just suffered a crushing defeat in their years-long battle to prevent Rex Energy from drilling wells “near” a local school. Backed by money and legal help from Philadelphia Big Green groups Delaware Riverkeeper and Clean Air Council, the Martians filed frivolous lawsuit after frivolous lawsuit. The effort is aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. The lawsuits have cost the taxpayers of Middlesex Township over $80,000 in legal fees. Even amid the back and forth lawsuits, at least two of the wells were permitted and drilled by Rex Energy, despite the bleatings of the Martians (see 
MDN spotted an announcement issue by the Pennsylvania Dept. of Environmental Protection (DEP) stating they’ve assessed a $185,000 fine on the Constellation Pipeline and its builder EM Energy (i.e. EdgeMarc) for a series of violations when building the pipeline in 2014-2015. That sent us digging. We don’t recall a Constellation Pipeline (and we’ve been writing MDN since 2009). What is the pipeline? Where, in PA, is it located? What is its purpose? We think we found most of the answers…
The sharp folks over at the Pittsburgh Business Times have been looking through data from the Pennsylvania Department of Environmental Protection (DEP) and have compiled a list of 20 drillers who have at least a dozen shale wells in the southwest PA region. And they ranked them from lowest to highest. We’ve grabbed the list below. The interesting thing for MDN is that there is one name in the list not familiar to us, and we’ve been watching this space since 2009. Always fun to learn something new. Here’s the list of southwest PA’s “Top 20” Marcellus drillers…
On Monday Pennsylvania Gov. Tom Wolf announced PA taxpayers are forking over $5 million to Steamfitters Local 449 union for use in their Butler Training Facility project. The union training facility trains welders. The Shell ethane cracker plant, when it gets built, will need a LOT of welders. Right now the facility graduates 170 new welders a year. With the grant money, they will expand it to train and graduate 270 welders a year…
This is so unusual, it qualifies as news: Supervisors in Buffalo Township (Butler County), PA have approved a new compressor station to be built by Mountain Gathering–a subsidiary of XTO Energy. The reason it’s news is for how the approval process was handled. Town residents who live near where the station will be built understandably had some concerns. Those concerns were aired. Town officials visited other compressor stations built by Mountain Gathering. They had XTO officials in to answer questions. There was no bleating and blatting, no parading in front of cameras and microphones, no “die-ins” and radical protests. Just deliberative, calm, adult discussions. And at the end of it, the supervisors voted to grant permission for the compressor station to get built. Unusual!…
A year ago MDN told you about a new gathering pipeline project in Butler County, PA. Rex Energy contracted with Stonehenge Energy Resources to build a gathering system in Butler County (see