Nuverra Environmental Line of Credit Expanded, Payback Extended
Nuverra Environmental Solutions is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. In January the company, going through tough economic times, was de-listed from the New York Stock Exchange (see Nuverra Environmental Delisted from NYSE, Now a Penny Stock). We recently noted that in 3Q16 the company “only” lost $38 million–which is $90 million less than they lost in 3Q15 (see Nuverra Environmental 3Q16: Still in the Red, but Improving). The company continues to struggle financially. We make that statement based on a recent 8-K filing made with the Securities and Exchange Commission. In that filing Nuverra discloses that they have worked out an agreement with their bank, Wells Fargo, to extend the payback date for a loan made on a line of credit from December 31 of this year to March 31 of next year–an additional three months. The disclosure also shows Nuverra will be allowed to borrow more money–going from the current $30.6 million cap to $58.1 million. When you consider companies like Chesapeake Energy have over $9 billion in debt, Nuverra’s debt seems pretty tiny. But the fact remains they’re pushing out the time for repayment, and potentially borrowing more money…
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From the beginning of Pennsylvania Gov. Tom Wolf’s disastrous administration, we have told you the unvarnished truth: Wolf’s call for a high tax on Marcellus Shale gas production is a giveaway, a pay-back, to teachers unions for their support of him in defeating Republican Gov. Tom Corbett (see 
You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see 
The GoMarcellusShale Forum where landowners and others interested in shale drilling hang out and swap messages back and forth was recently updated to become 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Drilling facts ignored; Pittsburgh law firms adjust to down energy market; PA firms poised to benefit from Shell cracker plant; o&g 2016 year in review; ten things to know about EPA’s final fracking/groundwater report; natural gas price in denial; China’s LNG imports hit record high, again; and more!
Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio, announced yesterday they sold 9,900 net acres in eastern Noble County and western Monroe County, OH for $63.8 million to an undisclosed buyer. That works out to be $6,444 per acre. The assets are in areas that are (currently) undeveloped, according to the company, and not in the “core” of where Eclipse wants to drill. Here’s the company announcement…
As we previously noted, last week the Bureau of Land Management (BLM) proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see 
Seems like every few weeks we read about yet another pipeline either getting built, or reversed, in order to send Marcellus/Utica gas to other parts of the country. The latest one that surprised us (hadn’t heard of it before) is Kinder Morgan’s plan to add bidirectional capacity to their Kinder Morgan Louisiana pipeline (KMLP) to flow gas to Cheniere Energy’s Sabine Pass LNG export facility. KMLP is a pipeline in Louisiana–how does reversing it get Marcellus gas to Sabine Pass? As you might have guessed, KMLP connects with other pipeline systems, including Columbia Gulf Transmission and ANR Pipeline. Both of those pipeline systems, which flow Marcellus gas, are adding bidirectional capacity as well. When it’s all done, (more of) our gas will head to Sabine Pass for liquefaction and then export to other countries. How cool is that? Here’s an update on KMLP changing directions…
In a rare sit-down interview, Chesapeake Energy’s CEO, Doug “the ax” Lawler told reporters the company is stable, strong and growing, and that is will not need to file for bankruptcy, as many had predicted would happen. Through hard work (and axing thousands of employees) Chesapeake has managed to cut an astonishing $10.9 billion worth of debt and leverage from its balance sheet. Hats off to Lawler. Total debt for the company has gone from $21 billion to $9 billion. At its height, Chessy employed 13,000 people. Today? Just 3,500 people. Hence our moniker for Lawler of “the ax” (see 
The litigious and environmentally radical Sierra Club, backed by Big Green money from billionaires like Tom Steyer, is attempting to block two important pipeline projects in the Marcellus: Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP), a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina; and DTE Energy/Spectra Energy’s NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. It’s no secret groups like the Sierra Club have tried to stop such projects. But their latest strategy in opposing these two projects is worthy of examination. The Clubbers are claiming that ACP and NEXUS have an unfair competitive advantage over alternative energy sources, like wind and solar, and therefore should be stopped. That is, the Sierra Club is attempting to use U.S. antitrust laws dating back to the late 1800s in an attempt to claim these pipelines are anti-competitive and therefore should be canceled. Talk about chutzpah…
In June 2015, a full year ahead of Shell’s final investment decision (FID) to build a multi-billion dollar ethane cracker plant complex in Beaver County, PA, the PA Dept. of Environmental Protection issued the project air quality permits–which was a “critical” requirement for Shell before making their decision (see