Marcellus Drilling News

American Energy Partners | Coterra Energy (Cabot O&G) | EMG | Energy Companies | Energy Services

More Info Comes to Light About McClendon’s Last Days/Last Moments
March 4, 2016March 4, 2016

We’ve spotted several new (to us) bits of information about Aubrey McClendon that may have bearing on his state of mind prior to the fiery crash that took his life on Wednesday. We now know who the likely second party was in the Dept. of Justice’s (DOJ) indictment of Aubrey on a single count of conspiracy. As we’ve pointed out from the beginning of the DOJ’s indictment, by definition you can’t have a conspiracy with just one person. You need at least two people. The problem was/is, the DOJ hasn’t indicted anyone else–which made this a witch hunt, not justice. You don’t get to say just one person is guilty in a conspiracy. We also have information about the state of Aubrey’s new business venture–American Energy Partners. It seems he was losing control of all the subsidiary companies spun off from AEP, and that his biggest backer, Energy & Minerals Group, was about to hang Aubrey out to dry. It may have seemed like with the indictment and his new venture slipping away and with old friends turning on him, that Aubrey’s world was closing in. First up, let’s begin our coverage with eyewitness accounts of the crash…
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American Energy Partners | Chesapeake Energy | Energy Companies

Stirring Tributes Pour in After Aubrey McClendon’s Untimely Death
March 4, 2016March 4, 2016

Right after news of Aubrey McClendon’s death, a number of people offered up their reaction, comments and condolences. We brought you some of the early/initial reaction yesterday (see Stunned: Former Chesapeake CEO Aubrey McClendon Dies in Car Crash). Since then, many more have poured in, from people like his former business partner and co-founder of Chesapeake Energy, Tom Ward; the president of Duke University (Aubrey’s alma mater), Richard Brodhead; CEO of Continental Resources, Harold Hamm (a fellow giant in the fracking industry); and Jim Cramer, celebrity investor and host of CNBC’s Mad Money. Among the outpouring of glowing comments was one from corporate raider Carl Icahn–the man who fired McClendon from Chesapeake. When we read Ichan’s words, we puked…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Dimock Trial Update: Parents Use Their Kids to Rescue Case…Fail
March 4, 2016March 4, 2016

If you want to be a blithering idiot and spout your anti-fossil fuel garbage–do it all you want. But don’t abuse your own children by making them do it too. And if you want to try to shake down a company with deep pockets to line your own pocket–same thing. Go for it. It’s sleazy and slimy–but don’t involve your kids in your unethical schemes. That’s just what the Elys have done. In a bid to try and rescue a trial that in all likelihood is about to be dismissed for lack of evidence, plantiffs Scott and Monica Ely had their lawyer put their own children, ages 10-13, on the witness stand. Who would do that to their own children? Even when the plantiffs’ lawyer, the inept Leslie Lewis, asked leading questions in an attempt to tug at the jury’s heartstrings, the entire effort was a bust. The Elys and Huberts, suing Cabot Oil & Gas for allegedly contaminating their water in Dimock, PA, are about out of options. After resting their case, the judge told the plantiffs he has “grave concerns” about the case and lack of evidence. The judge is seriously considering dismissing the case before it reaches the jury…
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Energy Services | Patterson-UTI

Patterson-UTI Average Rig Count Falls to 74 in February
March 4, 2016March 4, 2016

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). Previously Patterson’s January rig count number went down by 5%–from 82 in December to 78 in December. The month before that it was down 10%–from from 91 in November to 82 in December. What about February? Down another 4 rigs to a new low of 74 operating in the U.S. That’s a decrease of another 5%. Will the bleeding never end?…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP On Course to Jam New Regulations Down Drillers’ Throats
March 4, 2016March 4, 2016

In January, MDN told you that the Pennsylvania Dept. of Environmental Protection (DEP) finally pushed out new drilling regulations, required under the 2012 Act 13 law (see PA DEP Issues “Final” New Drilling Regulations; Industry Pushback). The new regulations were already done and ready to be adopted–and then radical leftist Tom Wolf took office and decided to put his own environmentalist fingerprints all over the regulations–ruining them. The industry is pushing back. Not at stricter controls here and there, but against superfluous and stupid requirements that cost a lot of money but don’t make the environment (or people) safer. Last month we told you that the DEP continue to keep secret some of the parts of the new regulations (see PA DEP Sec. Quigley Keeps Secret Key Part of New Drilling Regs). That’s shifty. Sneaky. Sleazy. So what’s the status? During an education presentation last week in Murrysville (Westmoreland County), PA, DEP deputy secretary for oil and gas management, Scott Perry, said the DEP will push through the new regulations as written. In other words, open wide drillers, here it comes…
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Industrywide Issues | Supply Chain

New Gas Compression Services Co is Born with $175M Investment
March 4, 2016March 4, 2016

A new company is born, targeting the Marcellus/Utica as well as Eagle Ford, Permian and Niobrara shale plays. The new company is based in Texas and is called Pegasus Optimization Managers. It is a “gas compression services” company. What the heck is that?…
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Dominion Energy | Energy Services

Dominion’s Quest to Buy Questar for $4.4B Advances
March 4, 2016March 4, 2016

In February MDN told you that midstream and local utility Dominion, with a major presence in the Marcellus/Utica region, has floated a takover offer to Questar Corporation, offering to buy the company for $4.4 billion (see Dominion Resources Makes Play for Western NatGas Company Questar). Questar is a Rockies-based integrated natural gas company operating through three subsidiaries: Questar Gas provides retail natural gas distribution in Utah, Wyoming and Idaho; Wexpro develops and produces natural gas on behalf of Questar Gas; and Questar Pipeline operates interstate natural gas pipelines and storage facilities in the Western U.S. The deal is an attempt by Dominion to diversify out of the northeast/Mid-Atlantic region. There are lots of good reasons for Dominion to buy Questar. We wonder if Dominion has any plans to flow cheap northeast gas West. That’s why we keep an eye on this story. Since our initial story, the Dominion/Questar deal has progressed. The Federal Trade Commission didn’t object to the deal–which means they approve of it; and Dominion has filed paperwork in Utah and Wyoming to combine the two businesses…
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CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Processing Plants

Cove Point LNG Export Plant Now 24% Complete, Rapid Progress
March 4, 2016March 4, 2016

Dominion is making excellent progress with the Cove Point LNG (liquefied natural gas) export facility. Despite the fact that shrill anti-fossil fuelers are trying to stop the facility in court (see Radical Enviro Groups Continue Lawsuit Against Cove Point LNG), fully 24% of the new plant is already done. And Dominion continues to make progress. Here’s an update on the LNG plant the antis couldn’t stop…
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CNG/LNG | Exporting | Industrywide Issues

East Coast LNG Export Updates – Bear Head & Downeast
March 4, 2016March 4, 2016

LNG is increasingly seen as vitally important to America’s natural gas industry. LNG, by which we mean liquefied natural gas (it gets liquefied by a process known as liquefaction), can be exported to other countries, providing an important new market for American natural gas. The way it gets shipped abroad is through an LNG export facility. In February the very first LNG export cargo left from Cheniere Energy’s Sabine Pass facility in southwest Louisiana (see Cheniere Finally Ships First Sabine Pass LNG Export – to Brazil). Some of the gas could have been (and likely will be in the future) from the Marcellus/Utica–piped to the Gulf Coast. But what about closer to home? The Cove Point LNG export facility is now 24% complete (see today’s companion story). However, there are other plants north of the Marcellus/Utica that can play a role. Some five LNG plants are planned for Canada’s East Coast area. There’s also a new project planned for the state of Maine. We have quick updates for one of the Canadian projects, and the project in Maine…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Mar 4, 2016
March 4, 2016March 4, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Antero Resources workers donate $13K to OH food banks; REX pipeline running again in OH; new CNG station in NJ; natgas faces death-defying choices; Barclays says natgas prices won’t go up until 2017; last chance to sell Chesapeake Energy stock; Harvard economist says natgas is “good for the world”; and more!
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American Energy Partners | Chesapeake Energy | Energy Companies

Stunned: Former Chesapeake CEO Aubrey McClendon Dies in Car Crash
March 3, 2016March 3, 2016

We are still stunned at the news–news you’ve likely already heard elsewhere. Yesterday morning Aubrey McClendon, 56 years old and the sole person in his SUV, was traveling along a 2-lane road in/near Oklahoma City when he crashed into a bridge foundation/embankment while moving at “a high rate of speed.” He was killed in the crash. Yesterday afternoon MDN editor Jim Willis received a call from reporter friend Bob Downing from the Akron (OH) Beacon Journal to ask for a response to the news. “What news?” Jim asked. And Bob told him. The accident is still being investigated, but the guy in charge of investigating it, without prejudging what he will find, has already pronounced it pretty cut and dried. We find it hard (nearly impossible) to believe, but most people, including the investigator, seem to believe it was a suicide, perhaps because the day before Aubrey was indicted by the U.S. Dept. of Justice (see Aubrey McClendon Indicted by DOJ for Conspiracy in Bid Rigging). Aubrey was traveling at 50+ mph and was not wearing a seat belt when his SUV hit the bridge embankment–without applying the brakes. He could have fallen asleep. He could have been distracted. Or it may have been intentional. The investigator said Aubrey had plenty of time to correct course and not hit the embankment. Below we have the details as we know them, along with reaction from a number of people and organizations. We join others in saying our thoughts and prayers go out to Aubrey’s wife and three adult children…
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Eclipse Resources | Energy Companies

Eclipse Resources: Production Up 186%, Continued Drilling in 2016
March 3, 2016March 3, 2016

Eclipse Resources, a small but growing driller headquartered in State College, PA but drilling exclusively in the Ohio Utica Shale, released their fourth quarter and full year 2015 update yesterday. Among the highlights: Production was up 186% in 2015 over 2014. Revenue was up 97% over 2014. Eclipsed drilled 31 wells, completed 51 wells and brought 76 wells online in 2015. The company will continue to focus exclusively on the Utica in 2016, as they did in 2015. They plan to spend $168 million in 2016, of which $130 million is for drilling and completions, and with that money they will drill 7.6 net Utica wells, complete 9.4 net Utica wells and exit the year with 11.5 net Utica wells drilled but uncompleted (DUCs). The elephant in the room is that Eclipse lost nearly $1 billion in 2015. However, as with many other drillers, the loss was on paper only–not out of pocket. With impairments (write-down of lease values) and with depreciation and other accounting shenanigans, almost all of the loss was on paper. Hey, at least they will keep on drillin’ in 2016! Here’s the update with the details…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Dimock Trial: Ingraffea Day 2 – Hides Behind a Woman’s Coat
March 3, 2016March 7, 2016

Yesterday we brought you first-hand reporting on Day 1 of testimony from so-called expert witness Dr. Anthony (Tony the Tiger) Ingraffea at the Dimock water trial (see Dimock Trial: Cornell Prof Tony Ingraffea Exposed as Fractivist). Both MDN friend Tom Shepstone and FrackNation filmmaker Phelim McAleer are attending the trial and filing superb reports. It’s a good thing they are there. The Democrat-controlled Scranton Times-Tribune–the “newspaper of record” in the very place where the trial is being held–has stopped reporting on the trial, because the news is just so bad for anti-drillers. It’s a total news blackout by mainstream media. But there is a TON of news coming from this trial, and none of it so interesting as the total destruction of Ingraffea under cross examination. He’s not only been exposed as a fractivist, he’s been exposed as knowing nothing about the Dimock water well case! The very case he’s supposed to know about–the very reason he is testifying as an “expert.” Below is a summary of day two of Ingraffea’s testimony, in which he admits to a huge list of things he doesn’t know. Also below, Phelim got his camera out and tried to interview Ingraffea outside the courthouse and Ingraffea, sounding like a baby muttering “He’s harassing me,” hid behind a woman’s coat and wouldn’t answer Phelim’s questions. It’s hysterical! You have to watch the video (below)…
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Energy Services | Industrywide Issues | Kentucky | Landfills | Regulation

Local Residents Demand KY Landfill Accepting Frack Waste Close
March 3, 2016March 3, 2016

On Tuesday MDN told you about Marcellus and Utica Shale waste (concentrated drill cuttings) that were illegally dumped in a Kentucky landfill (see Marcellus/Utica Frack Waste Illegally Dumped in Kentucky Landfill). We have an update. Tuesday night a crowd of 300+ local residents, up in arms over the possibility of high levels of radiation that might potentially leak from the landfill, which sits across the street from a school, called on local officials to shut down the landfill. Although the local officials didn’t take action at the meeting, they did say they have “no problem” shutting it down if it’s found there was foreknowledge they accepted the waste. The operator of the landfill, Advance Disposal, claims they were lied to about what was in the loads they accepted. In other words, the fingers have come out and are all pointing at the other party…
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Energy Companies | Exxon Mobil

Exxon to Spend 25% Less in 2016, But Raises $12B to Go Shopping
March 3, 2016March 3, 2016

ExxonMobil, the largest U.S.-based energy company and largest producer of natural gas in the U.S., released an interesting press release yesterday. In it, they divulge their high-level plans for 2016. Among those plans, the company will spend $23 billion this year, which is 25% less than what they spent last year. Exxon will start up 10 new upstream projects in 2016 and 2017, which will add an additional 450,000 oil-equivalent barrels per day to their already huge production. Exxon CEO Rex Tillerson is quoted as saying, “We are advancing several Downstream and Chemical projects to increase feedstock flexibility, produce higher-value products and expand logistics capabilities to strengthen our competitive advantage in these businesses.” Our thought: Let’s hope one of those downstream projects getting advanced this year is the Monaca, PA ethane cracker. It’s also interesting what Exxon didn’t say in yesterday’s press release: They didn’t comment on the recent $12 billion in bonds they’ve floated so they can go shopping and pick off distressed competitors and/or their assets…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Susquehanna County | Williams

Maple Trees Finally Come Down for Constitution Pipeline
March 3, 2016March 3, 2016

In the end, not even self-righteous Hollywood actor James Cromwell–who played Zefram Cochrane (mythical creator of the warp engine) in the 1996 movie Star Trek: First Contact (one of our favs)–could stop the chain saws in Susquehanna County, PA. We’ve been telling you about some holdout the anti-drilling Holleran family who didn’t want the much-needed Constitution Pipeline to cross their land (see Maple Syrup Farm in Path of PA Pipeline, Antis Make Most of It). Cromwell and other antis heard about it and visited to add their shrill voices to the protest (see Actor James Cromwell Admits He’s Clueless, Fights Pipeline Anyway). The protesters tried to stop Williams from clearing trees on the property–and a judge got tired of that real quick (see Judge Tells NEPA Family to Let Williams Cut Maple Trees, Or Else). The Hollerans finally obeyed the judge’s order and the trees are now down…
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