Gulfport 3Q16 Fin. Update: $157M Loss, 6 Utica Rigs Coming in 2017
In mid-October Gulfport Energy was one of the first out of the gate with information on the third quarter (see Gulfport 3Q16 Operations Update: Production Up 13%, Prices Up Too). However, that was only an operational report, and not the fuller, financial report. On Wednesday Gulfport delivered the full package/update. As we previously noted, natural gas production was up nicely. But a fuller reading of the numbers in this report shows that, like other Utica/Marcellus producers, both oil and natural gas liquids (NGL) production was down year over year for Gulfport. This confirms media reports we’ve noticed over the past few months (see Shift in Utica Drilling – from Wet Gas to Dry Gas and Why Utica Drillers are Moving from Wet Gas to Dry Gas). One reason to separate operational from financial updates is because the news in the financial update is typically not so good, while operational news typically is good. Once again we see that pattern. Gulfport lost $157 million in 3Q16–but that’s a big improvement from the $388 million loss in 3Q15. Here’s the fuller, financial update from Gulfport, including the news that the company plans to begin 2017 by running six rigs in the dry gas Utica…
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Carrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. According to Carrizo’s latest quarterly update for 3Q16, that (sad) state of affairs continues…
As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Month by month Paterson’s rig count has declined over the past year plus–until June (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 
This is an important story for both drillers and rig workers, potentially answering the question of who can and can’t be sued if something goes wrong when drilling a well. In 2006 Atlas Resources leased land in Greene County, PA to drill shale wells. In 2007 Atlas hired Gene D. Yost & Son, Inc. to drill wells for Atlas, including on the land leased in Greene County. Yost was the subcontractor, employing people to do the work using Yost’s equipment. As workers were removing drill pipe, preparing to shut in the well, there was an accident which appears to be operator error. One man, Rock A. Doman, was killed. The Doman family later filed a wrongful death lawsuit against Atlas Energy for negligence. After years of litigation and court findings, an appeals court ruled last week that Atlas is, in fact, a “statutory employer” under PA law, meaning they are immune from such lawsuits. That is, because Atlas hired another company for that company’s services, they (Atlas) cannot be held responsible for what the company they hired theoretically did or did not do. In this case, Yost’s “negligence” (if indeed there was any negligence) is not transferable to Atlas…
This story reaches back just a bit, but we found it interesting and instructive. On Thursday, Sept. 29, MarkWest Energy gave a tour of its facilities in eastern Ohio. Ethane was one of the big topics of discussion. During that discussion, MarkWest’s vice president of operations, Dave Ledonne, said this about the announced Shell and hopefully soon-to-be announced PTT Global ethane cracker plants: “The cracker plants are the end game. They are what we really need.” What did he mean?…
MDN has been reporting on the Ohio Dormant Minerals Act (DMA) for years. In a nutshell, there are two DMAs in Ohio–one passed in 1989 that went into effect in 1992, and another in 2006 which added certain additional procedural requirements to the 1989 version. The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer back to the surface owner under certain conditions. The problem, for drillers and for landowners in Ohio, is in knowing which set of DMA rules to use (1989 or 2006) in determining who owns the mineral rights. A number of DMA cases went before the Ohio Supreme Court. In May, Ohio attorney David Wigham (Roetzel & Andress law firm) said there are signs that the Supremes were about to release a massive, all-in-one-go ruling on the DMA (see 
Though often we’re irritated, sometimes we simply marvel at the arrogance of organizations like THE Delaware Riverkeeper. They honestly think they know better than you what kind of energy you should have the right to buy. The people who run the organization (Maya van Rossum, who is THE self-appointed keeper of the Delaware River Basin), irrationally hate all fossil fuels. Even though Maya & company use those fossil fuels every day of their lives. In fact, even though their lives DEPEND on fossil fuels. van Rossum and those who follow her philosophies have settled on a new strategy to try and defeat the use of fossil fuels: stop all new pipeline development. Period. The only way they can do that is to bully and intimidate federal and state agencies–like the Federal Energy Regulatory Commission (FERC) and the Pennsylvania Dept. of Environmental Protection (DEP). Currently it’s FERC in Maya’s cross-hairs. Maya and THE Delaware Riverkeeper are convening a meeting in Washington, D.C. at the National Press Club (nice place, we’ve eaten there) called “People’s Hearing Investigating FERC.” You read that right. In an attempt to bully and humiliate the hard-working people at FERC, Maya plans to initiate a media circus to pressure FERC into denying, among other projects, the PennEast Pipeline. She’s billing the event as a hearing for those who “have experienced abuse at the hands of FERC and the pipeline industry.” We’re mulling over the possibility of a hearing into those abused by Maya and THE Delaware Riverkeeper. We thing we’d have a pretty strong case…
This past Monday, Oct. 31, our favorite government agency (the U.S. Energy Information Administration) issued their Natural Gas Monthly report. The report covers data received up through August 2016. Even though the data is a couple of months old, it is instructive (and interesting). EIA says the month report, “highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer?related activities and underground storage data are also reported.” We found the report interesting as we scanned through it and thought you would too…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Rex Zone 3 east-to-west on schedule for start-up; Murrysville, PA slates public hearing on new fracking rules; it’s getting harder to impress investors with shale; gas rigs go up again; gas keeps bumping nuclear out of the ring; and more!
In March MDN brought you the news that Primus Green Energy, a gas-to-liquids (GTL) technology company announced they would build a 160 metric tons per day (MT/day) methanol plant using the company’s proprietary technology at “a manufacturing site in the Marcellus shale region” in 2017 (see 
Last week saw a flurry of activity for the official ribbon-cutting at Panda Power’s very first built-from-scratch Marcellus gas-powered electric plant going online in Bradford County (see 
Yesterday one of our favorite drillers in both the Utica and Marcellus, Rice Energy, released their third quarter 2016 update. It can be summarized in one, short phrase: “Everything that should be up is up.” Production is up for the quarter–by a big 23%. Net income is up, by 40%. The company’s line of credit is up to $1 billion (was $875 million). In addition, during 3Q16 Rice floated new stock to help them buy Vantage Energy, for a whopping $2.7 billion. Also during 3Q16 Rice drilled and completed 10 new Marcellus wells, along with drilling and completing 2 Utica wells. In addition they brought another 11 Utica wells online. There’s lots happening at Rice Energy. Here’s the update…
TransCanada wants all of Columbia Pipeline–and they want it real bad. Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast, didn’t want to be left out of the most important midstream story of the century, so they bought Columbia Pipeline Group–closing on the sale in July (see