Antero Resources 3Q16: Production Up 25%, Averaged $3.96/Mcf
Antero Resources, one of the biggest drillers in the Marcellus, released their second quarter 2016 update in August which showed natgas production was up 19% over 2Q15 (see Antero Resources Production Up 19% in 2Q16, but Loses $596M). However, the company also reported production was essentially flat (the same as) production during the first quarter of 2016. But in September the company revised its 2016 production estimates–up–because they are using more sand in their fracking (see Antero Feels Good, Increases Production Estimates for 2016). How’s that working out? Yesterday Antero released their third quarter 2016 results. Production is up 25% in 3Q16 over 3Q15, and up 6% over 2Q16. In other words, more sand is working. The other important thing to note about Antero is that the company is perhaps the top Marcellus/Utica driller that makes use of hedging–locking in long-term prices for the gas it produces. Instead of having to sell its gas at whatever the daily market price is (right now averaging $1.35 per thousand cubic feet, or Mcf, in the Marcellus/Utica), they sell it at a locked-in price that’s much higher. For 3Q16, Antero’s average sale price was a whopping $3.96/Mcf! Smart financial folks working at Antero. Here’s the full Antero update…
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MDN has extensively covered the story of what will become the largest natural gas-fired electric generating plant in Pennsylvania, being built by Invenergy in Jessup Township in Lackawanna County (see 
In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see 
Yesterday MDN reported that EQT is buying another 60,000 Marcellus/Utica acres (along with buying out Trans Energy) in transactions totally $683 million (see 
Magnum Hunter Resources Corporation (MHR), a driller 100% focused on the Marcellus/Utica emerged from bankruptcy in May, less than five months after filing (see 
As we near the end of this year, analysts and consultants inevitably turn their attention to next year, 2017. Will oil and gas drillers spend more money next year on their drilling programs? The consensus appears to be a resounding “Yes!” The question is, how much more? Anyone’s guess. But analysts like to guess. One those analyst firms is Evercore ISI, an investment banking advisory firm founded in 1995. Evercore’s smarties are predicting drillers will spend 25% more next year than they did this year on drilling–with a total collective spend across the industry of ~$110 billion. Here’s their thinking…
The bullies at the rogue, out-of-control federal Environmental Protection Agency (EPA) are leaning hard on the Federal Energy Regulatory Commission (FERC) over FERC’s approval for two Marcellus/Utica projects–Leach Xpress and Rayne Xpress Expansion projects. The EPA thinks FERC should consider man-made global warming flummery as part of their evaluation process. FERC is resisting. So the EPA bullies are demanding a meeting, to help FERC get it’s head straight (see 
Yesterday EQT announced a pair of deals that will net the company another 60,000 Marcellus/Utica acres including 44 Marcellus wells producing a collective 44 million cubic feet equivalent per day (MMcfe/d) of natural gas. Most of the acreage (42,600) is in three West Virginia counties, with another 17,000 acres in three Pennsylvania counties. EQT is paying a total of $683 million for the two deals. In the first deal, EQT is buying Trans Energy, Inc., which will become a wholly-owned subsidiary of EQT. EQT is also buying Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (WV). In the second deal, EQT is buying 17,000 acres from an unidentified third party in southwestern PA, in Washington, Westmoreland and Greene counties. EQT describes the purchases as adding acreage to their “core development area.” You may recall that EQT closed a deal in July, just three months ago, to purchase 62,500 acres from Statoil in WV for $407 million (see 
A landowner in northeastern Pennsylvania signed a lease with Southwestern Energy, leasing her property for shale gas drilling. Southwestern eventually showed up and drilled a well on her property. But the landowner then said the drilling was too loud, and lights at night too bright, and it disturbed her “peace of mind”–so she sued Southwestern for eight weeks of “peace of mind” disruption and a prescription for Xanax. Fantastically, a judge is letting the lawsuit proceed. Earth to landowners: When drillers show up, it’s an INDUSTRIAL activity. It’s loud. There’s lots of trucks. There’s lights at night. And in a month or two, it all goes away. And when the royalty checks arrive in the mail, you’ll forget all about the inconveniences. So what’s really going on in this case?…
In September 2015 MDN brought you the news that two joint venture partners, MPLX (Marathon Petroleum) and Enterprise Products Partners, were actively evaluating a plan to reverse the flow of the 795-mile Centennial Pipeline to send natural gas liquids (NGLs) from the Utica/Marcellus to the Gulf Coast (see 
The world’s largest oilfield services company (OFS), Schlumberger, turned a profit in 3Q16 (see 
Range Resources, the very first company to sink a Marcellus well, issued their third quarter update yesterday. Among the highlights: Range lost $42 million for the quarter, which is a vast improvement over 3Q15 when the company lost $301 million. So things are getting better, financially. Marcellus production was 1,396 million cubic feet equivalent (Mmcfe) per day, a 9% increase over 3Q15. Range’s “Southern” division, in SWPA, saw a 23% increase in production, but because Range sold some assets in Bradford County, their “Northern” division saw a 39% decrease (year over year) in production. Range continues to focus its efforts in the southwest PA area, saying the company “continues to drill and complete outstanding wells, with peer-leading EURs, while continuing to drive costs lower.” Here is yesterday’s 3Q16 update from Range…
Last week MDN reported that electric company FirstEnergy has begun construction of a new electric substation in Washington County, PA to provide electricity to “support two natural gas processing facilities being developed in the area” (see 
We’re always delighted when we spot a story or reference about a new company operating in the Marcellus/Utica that had heretofore escaped our finely-turned radar. Here’s one of those stories. In 2014, five people with experience in the oil and gas industry came together to form Evolution Energy Services. Based in Cadiz, OH, the company provides a range of services and products for the o&g industry–everything from porta potties to fracking chemicals to rig workers. We’ll call them an oilfield services company (OFS). We hadn’t heard of this upstart company until we spotted a brief reference that Evolution has just secured a $2 million load that will allow them to expand…
“What is all the fuss over Pennsylvania’s Chapter 78a drilling rules going into effect anyway? We mean, come on, those rules were hashed out over the past five years! Can’t the drilling industry just bend over and take it like a man? It can’t be all that bad, can it?” With pleasure, we bring you a response to that line of thinking–a line of thinking YOU may have thought! The writer, Colin McNickle, is a former editorial page chief for the superb Pittsburgh Tribune-Review. McNickle tackles Chapter 78a head-on in this excellent rebuttal. It is nothing short of a declared war on shale gas and oil…