Coterra Stops Drilling New Wells in Marcellus, Fracking Ends Soon
We never thought we’d see the day when we would write the headline that Coterra (nee Cabot Oil & Gas) was pulling all of its active rigs in the Marcellus in Susquehanna County, PA. But today is that day. It makes us profoundly sad (and the primary reason we opposed the merger of Cimarex and Cabot, see Markets “Baffled” by “Unexpected” Cabot Merger with Cimarex). Coterra CEO Tom Jorden was interviewed during a session last week at the Barclays 38th Annual CEO Energy-Power Conference. As part of the Q&A, Jorden confirmed (dropped the bombshell) that his company has just “released our last rig in the Marcellus.” Read More “Coterra Stops Drilling New Wells in Marcellus, Fracking Ends Soon”
For the week of August 19 – 25, a total of 34 permits were issued to drill new shale wells in Marcellus/Utica. The Keystone State (PA) had 16 new permits. PA’s top recipient was Chesapeake Energy, with six permits in Bradford County. Coterra Energy was a close second, with five new permits issued in neighboring Susquehanna County. The Buckeye State (OH) received 13 new permits, with Encino Energy (EAP) receiving eight and Ascent Resources five. OH’s permits were spread across Guernsey, Harrison, and Noble counties. Finally, the Mountain State (WV) received five new permits, all of them for Northeast Natural Energy in Monongalia County. 
Epsilon Energy issued its second quarter 2024 update earlier this week. Epsilon, a relatively small company, used to concentrate most of its effort on developing Marcellus Shale wells. However, over the past few years, the company has expanded into other plays and now owns assets in the Anadarko (Oklahoma and Texas) and the Permian (Texas and New Mexico). Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy (in the Marcellus), and the other company does the drilling. For 2Q, Epsilon’s capital expenditures were $5.7 million, primarily related to work in Texas.
Coterra Energy, formed by the merger of Cabot Oil & Gas (drills for natural gas in the Marcellus) and Cimarex Energy (drills for oil in the Permian and Anadarko basins), issued its second quarter 2024 update on Friday. The company turned in respectable financial numbers, making a profit of $220 million in 2Q24, up 5% from the $209 million it made in 2Q23. Unfortunately, there was bad news for the Marcellus. The company has just trimmed another 325 MMcf/d of production across the Marcellus basin, and once the three pads it is actively drilling have concluded in October, no new drilling is planned.
In March 2021, Eureka Resources announced plans to build a Marcellus Shale wastewater treatment facility in Dimock (Susquehanna County), Pennsylvania (see 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its completely dysfunctional and irresponsible cousin, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals for responsible and safe shale drilling. On June 13, the SRBC board approved 19 new water withdrawal requests within the basin, seven of them for water used in drilling and fracking shale wells in Pennsylvania. The Marcellus/Utica shale drillers (and one water company) receiving a green light from SRBC included BKV (3 requests), EQT, Keystone Clearwater Solutions, Seneca Resources, and Southwestern Energy.
In January 2020, the Pennsylvania Supreme Court ruled in THE most consequential lawsuit for Marcellus Shale drilling we’ve seen, a case called Briggs v Southwestern Energy (see 
Coterra Energy announced a large layoff of employees at its GDS (GasSearch Drilling Services) Marcellus operation yesterday. GDS was founded in 2006 as a subsidiary of Cabot Oil & Gas (now Coterra Energy). GDS is based in South Montrose, PA, and provides services including pad site development, impoundment construction, water hauling, trucking, light equipment rental, and roustabout services supporting Coterra’s natural gas drilling. GDS employs approximately 170 people in Susquehanna County at various locations. Yesterday, 55 GDS employees got a pink slip.
In October 2020, a law firm filed a lawsuit on behalf of several Cabot Oil & Gas shareholders against Cabot (now Coterra Energy), claiming the company “had inadequate environmental controls and procedures and/or failed to properly mitigate known issues related to those controls and procedures,” and that the company “failed to fix faulty gas wells which polluted Pennsylvania’s water supplies through stray gas migration” (see 
Pennsylvania State Senator Katie Muth’s attempt to block a proposed frack wastewater treatment plant in Dimock (hours away from her own district) has bombed out yet again. Muth tried to challenge and block a permit for the plant, an effort which was mostly rejected in court in June 2022 (see