UGI Completes 4th Expansion of NEPA Marcellus Gathering System

UGI Energy Services, the pipeline subsidiary of UGI Corporation (utility company) has just completed the fourth expansion of their northeastern PA pipeline gathering system called the Auburn Gathering System. In May 2018 MDN told you about UGI’s plans to add another two compressor stations and more gathering pipelines to benefit Cabot Oil & Gas (see UGI Expanding NEPA Gathering System to Flow More Cabot Gas).
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Cabot O&G Continues to Grow in NEPA, Opens New Facility

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Cabot Oil & Gas, one of our favorite Marcellus Shale drillers, focuses almost exclusively on drilling in Susquehanna County, PA, with a few wells in neighboring Wyoming County. Cabot continues to pour money into northeastern Pennsylvania. On Wednesday Cabot’s wholly-owned subsidiary, GasSearch Drilling Services, officially opened a new 28,000-square foot maintenance facility in Lenox Township (Susquehanna County) with a ceremonial ribbon cutting and open house for energy industry colleagues, neighbors and public officials.
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Which Way will PA Supreme Court Rule on ‘Rule of Capture’ Case?

Last week MDN told you that oral arguments would be heard on Thursday at the Pennsylvania Supreme Court in what we believe is one of (perhaps THE) most important shale cases ever in the Keystone State (see Most Important Court Case in PA Shale History Heads to Supremes). The case deals with whether or not the age-old oil and gas principle called “the rule of capture” applies in PA shale drilling.
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Most Important Court Case in PA Shale History Heads to Supremes

This Friday Thursday the justices sitting on the Pennsylvania Supreme Court will hear what we believe is the most important shale gas court case in the history of the state: Briggs v Southwestern Energy. We consider this case to be an existential threat to the future of shale gas drilling in PA should the decision go the wrong way. And no, we’re not exaggerating.
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Cabot: Spending Up (Some) in 2019, Spending Down (Big) in 2020

Cabot Oil & Gas is the only Marcellus/Utica driller that is profitable quarter after quarter and year after year. So the market pays attention to what Cabot does, because they’ve figured out how to make money in a low commodity price environment. Last Friday Cabot released second quarter numbers. CEO Dan Dinges talked about the balance of 2019 and even a bit about what to expect in 2020.
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Spreading Marcellus Love Throughout PA with Expanded PIPE Program

PA Rep. Jonathan Fritz (photo by Rick Hiduk)

Two weeks ago today MDN editor Jim Willis experienced the rare treat of venturing out from behind the keyboard to a press conference held in the great outdoors in nearby Susquehanna County, PA. The topic? Energize PA, a series of bills being promoted by Republicans in both the PA Senate and House. The event was organized by PA Rep. Jonathan Fritz, who opened the presser with details on House Bill (HB) 1103, a bill that will expand the state’s PIPE program to run more “last mile” natural gas pipelines to homes and businesses in rural communities. PA makes the gas, and now they want to benefit from using it.
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NEPA Pipeline Builder Rockford/Primoris Clipped $355K for Back Pay

Rockford Corporation, a subsidiary of Primoris Services Corporation, entered into a consent judgment with the U.S. Dept. of Labor to pay $354,933 in back wages and “damages” to employees over the practice of failing to pay overtime. Those affected include equipment operators, welders, and helpers. Rockford is one of the pipeline construction companies Williams uses to build gathering pipes in Susquehanna County, PA. Rockford works in other geographies too, not just the Marcellus. The investigation into Rockford began with their Marcellus pipeline activities in northeastern PA, then spread nationwide.
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Epsilon Energy Drilling 4 “Lower Marcellus” Wells in NEPA

From time to time we check in on Epsilon Energy, which concentrates most of its effort on the Marcellus in Susquehanna County, PA. Does Epsilon actually do any of its own drilling? No. They partner with (give money to) other companies and the other companies do the actual drilling. Epsilon, according to their website, owns ~4,000 net acres in the PA Marcellus–down from 5,750 net acres which their website showed in February. Epsilon released their first quarter 2019 update earlier this week.
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Capturing the Interest of the Next Generation to Work in PA Shale

The best teachers (people) and the best teacher (method of instruction) have the same thing in common: Hands on. As in tactile, doing stuff, rather than sitting in a chair attempting to learn by information dumping. Particularly with elementary-age kiddies. Cabot Oil & Gas and Southwestern Energy recently sponsored the annual Vehicular Career Day where 400 fifth graders from school districts across Susquehanna County climbed into big rigs, buses, and emergency vehicles. The shale industry was well-represented. Needless to say, the kids loved it.
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Cabot O&G Having a Tough Time Filling Open Jobs in NEPA

Several members of the Marcellus Shale industry spoke at a meeting of the Williamsport/Lycoming Chamber of Commerce yesterday, including MDN friend George Stark from Cabot Oil & Gas. George is director of external affairs. At the meeting he said the Marcellus industry has made tremendous strides in the last 10 years and will be around for decades to come. He said, “It’s booming in our area.” George also said Cabot is having trouble filling vacant jobs.
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Cabot O&G 1Q19: Production Skyrockets 21%, $308M Free Cash Flow

The money-making Marcellus machine known as Cabot Oil & Gas continues to crank out the hits. On Friday Cabot held a conference call to discuss the company’s first quarter 2019 performance. And wow! What a performance! The company made $308 million in net income/profit (up 141% from $128 million in 1Q18), and produced 2.3 billion cubic feet per day equivalent (Bcfe/d) of mostly Marcellus (little bit of Haynesville) gas, up 21% from 1Q18.
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Landowner Asks PA Supremes to Throw Out 150-Yr-Old Rule of Capture

Last November the Pennsylvania Supreme Court agreed to hear a case, Briggs v. Southwestern Energy, that is hands-down the most important court case to ever happen regarding the Marcellus Shale in PA. And no, we’re not exaggerating. A blizzard of briefs by Southwestern and those supporting Southwestern were filed in February (see “Rule of Capture” Briefs Filed w/PA Supreme Court in Briggs Case). On Wednesday, it was the Briggs’ turn to file a brief, one in which they ask the Supremes to stop application of the 150 year-old “rule of capture” in PA when it comes to shale wells.
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Cabot Settles Overtime Work Lawsuit by 80 PA Workers for $3.56M

A second lawsuit we’re reporting on today that had previously slipped by our usually good radar. A former Cabot Oil & Gas employee filed a lawsuit in October 2017 alleging that he and a number of other “employees” had been stiffed out of overtime payments by Cabot–that Cabot had treated them as independent contractors rather than as employees. The lawsuit was granted class certification.
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Lots of Marcellus Jobs in Northeast PA – More Workers Needed

There are plenty of jobs in the shale industry in northeastern Pennsylvania–IF you have certain skills. What kind of skills? The kind that are taught at programs like at the Lackawanna College School of Petroleum and Natural Gas (PNG) in their two-year program. Or skills you can pick up at the Susquehanna County Career and Technology Center.
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Enerplus 2018 – Still Owns 36K Marcellus Acres in NEPA

It’s been a while since we’ve checked in on Canadian energy company Enerplus Corp, which currently owns some 36,000 acres of Marcellus Shale leases in northeastern Pennsylvania. The company doesn’t drilling any wells in the region but does participate by funding the drilling programs of others. On Friday Enerplus issued their 2018 and 4Q18 update, which shows the company’s Marcellus production averaged 208 million cubic feet per day (MMcf/d).
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