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    Range Resources’ Executive Chairman Sells 468K Shares of Co Stock

    After serving 20 years as the CEO of Texas-based Range Resources–the first and one of the largest drillers in the Marcellus Shale–John Pinkerton retired and Jeffrey Ventura became the new Range CEO on Jan. 1, 2012 (see Range Resources Names Early Marcellus Advocate as Next CEO). Even though he retired as CEO, Pinkerton stayed on the board of directors, becoming executive chairman. Over the past two weeks Pinkerston has sold 467,521 shares of Range stock that he owns, leaving him with just 390,343 shares. The grand total of his stock sales was $10.6 million. Knowing it doesn’t look good that the executive chairman has just dumped more than half of his stock when the stock price is half what it was just three months ago, Range issued a statement to explain why Pinkerton engaged in a fire sale of his company shares…
    Read More “Range Resources’ Executive Chairman Sells 468K Shares of Co Stock”

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    Halcon Resources Announces 1-for-5 Stock Split to Avoid De-Listing

    Halcon Resources is a driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play and currently doesn’t drill in any of that acreage. Halcon is one of the one of eight Marcellus/Utica companies on David Fessler’s “Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). As an interesting aside, the “Death List” also includes Marcellus/Utica driller Magnum Hunter, a company filing for bankruptcy earlier this week (see Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy). In August Halcon refinanced $1 billion worth of outstanding IOUs with a third lien, paying a 13% interest rate on debts that had been 8.875% to 9.75%, and in November Halcon offered second liens for certain other IOUs, offering a new interest rate of 12% for debts that previously had rates of 8.875% to 9.75%. Halcon’s latest move came yesterday when the company announced a reverse stock split in which they will combine five shares into one share effective Jan. 5. What’s a reverse split and what does it mean?…
    Read More “Halcon Resources Announces 1-for-5 Stock Split to Avoid De-Listing”

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    DOJ Tells Halliburton/Baker Hughes “No Deal Yet” – What’s Next?

    As we told you yesterday, the Halliburton buyout of Baker Hughes continues to be in trouble due to regulators (see Whispers Turning in Chorus, Halliburton/BH Deal in Trouble). Regulators in Australia and Brazil are balking at the deal, and there’s grumbling in the European Untion. But that’s all inconsequential compared to the main obstacle–the U.S. Dept. of Justice (DOJ). Earlier this week Halliburton/BH announced the timing agreement to reach a deal with the DOJ will expire with no deal worked out with the feds. However, they will keep working on a deal with the DOJ–they haven’t given up. What it means is that the new marriage date, which had slipped from December 1st to “early 2016,” will now be April 30, 2016–more than a year after announcing their nuptials. That is, IF they can hammer out a deal that pleases the bureaucrats at the Obama DOJ. Here’s the statement from Halliburton/BH issued earlier this week…
    Read More “DOJ Tells Halliburton/Baker Hughes “No Deal Yet” – What’s Next?”

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    The One Thing Everyone Agreed on at PA Pipeline Task Force Mtg

    Yesterday saw another in a series of meetings by the Pennsylvania Task Force on Pipeline Infrastructure Development–the penultimate meeting for the group of 48 members appointed by Gov. Tom Wolf and the PennFuture Dept. of Environmental Protection Secretary John Quigley. At the last meeting, in November, the group introduced a list of 184 “recommendations” in a 335-page document that would “guide” future gathering pipeline development in the state (see PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force). At yesterday’s meeting the usual anti-fossil fuelers were present to complain, which is what they always do. Seems they’re only happy when they can make other people’s lives miserable–and they did their best to do just that at yesterday’s meeting. According to one report, there was one thing (amazingly) everyone agreed on yesterday…
    Read More “The One Thing Everyone Agreed on at PA Pipeline Task Force Mtg”

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    Will EPA Whore Itself to Antis and Change Fracking Water Study?

    The one great, huge, towering problem that anti-drillers have is that there is no scientific evidence that supports their wild claims that fracking contaminates water–which is their favorite lie to spread. When the Environmental Protection Agency arrived at the same conclusion–fracking doesn’t pollute water–after four years of studying it, that really took the wind out of the sails of rabid fossil fuel haters (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). The EPA reviewed research from over 950 studies and even conducted nine of their own primary studies. Conclusion: fracking doesn’t pollute water supplies. What’s a good fossil fuel hater to do? Pressure the EPA to change the outcome of their study. True science means nothing to liberals–science is not objective for them, it’s political, a tool to be used. The Independent Petroleum Association of America recognizes that and apparently has some intel that the EPA may bow to pressure and reverse its previous finding to state that fracking does cause harm to water supplies, contra to their four-year-long review and all of the facts that say otherwise. Will the EPA whore themselves for radical environmentalists and change course?…
    Read More “Will EPA Whore Itself to Antis and Change Fracking Water Study?”

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    How Low Will it Go? Traders Say NatGas Price Will Hit 20-Year Low

    Two days ago we highlighted stories about the price of natural gas, noting it had hit a 14-year low (see Natural Gas Prices Hits 14-Year Low – When Will it Rebound?). On Monday the CME price (the price for futures contracts based on the Henry Hub price) closed at $1.89/Mcf (Mcf is thousand cubic feet, the equivalent of MMBtu, or one million British thermal units which the price is often quoted in). Yesterday the price closed at $1.79/Mcf. Just how low will the price go? A number of traders now believe it may hit $1.60/Mcf, which would represent a 20-year low. Some are saying it may hit (gasp) $1.50/Mcf. A lot of the “blame” for the historic low price of natgas is the prolific output from the Marcellus/Utica…
    Read More “How Low Will it Go? Traders Say NatGas Price Will Hit 20-Year Low”

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    South Jersey Gas Customers Get $58 Xmas Present Thx to Marcellus

    Customers of natural gas utility company South Jersey Gas will get a nice Christmas present from the company next month–a credit on their bill for an average $58 per customer–collectively $20 million. Why? Because wholesale natural gas prices paid by the company are so low–thanks to the Marcellus Shale. So said South Jersey Gas in an announcement yesterday…
    Read More “South Jersey Gas Customers Get $58 Xmas Present Thx to Marcellus”

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    New EIA Report Shows Huge Growth in NatGas Electric Generation

    We talk a fair bit about the price of natural gas, which drives how willing drillers are to drill for it. The higher the price, the more willing they are to drill. The converse is also true. If you can’t make a profit, why drill? One of the major users of natural gas, a source that is increasing its use, are electric generating plants. Price is driven by supply and demand. More demand is good–and using natural gas to power electric generating plants is one of the most efficient and environmentally friendly ways of producing electricity. So when we saw a new report being published (monthly) by our favorite government agency, U.S. Energy Information Administration (EIA) that covers the monthly inventory of electric plants–what’s powering them and how much electricity they’re producing–we perked up. In reviewing the stats, two things clearly stand out: using coal for electric generation is cratering, and using natural gas to power electric generating is rapidly rising…
    Read More “New EIA Report Shows Huge Growth in NatGas Electric Generation”

  • Marcellus & Utica Shale Story Links: Thu, Dec 17, 2015

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Kinder Morgan considers relocating compressor station, defends pipeline proposal; record wastewater in OH’s injection wells; investors dump large number of shares in EQT Midstream, CONSOL Energy; local pediatrician says compressor station would be “toxic”; winners & losers with low oil prices; fractivists plan to repeatedly break the law; UK to allow fracking under national parks; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Dec 17, 2015”

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    It’s a Mad Mad Mad Mad Mad Climate Change World

    mad worldWe think it’s hard to overstate the power play being made by those who assembled in Paris earlier this month for the United Nations COP21 Climate Change Conference. As we previously wrote two days ago, Obama will never get Congress to ratify a treaty based on the agreement he signed in Paris (see Paris Climate Treaty Signed by Obama NOT Binding on U.S.). However, like all good fascists, obeying our nation’s laws and Constitution won’t slow BHO down. He’ll figure out how to wave his magic Executive Orders wand and just “make it so.” That’s his plan. You may think we’ve gone mad, but we must point out, yet again, that IF the plan coming out of the Paris conference is actually implemented, it means the end of the fossil fuel industry. Period. We are NOT exaggerating this. That is their stated purpose–to end the world’s reliance on fossil energy. That’s how this agreement is being reported in mainstream media–have you bothered to read the reports? What’s even more insane is that yesterday we received a press release from the International Association of Oil & Gas Producers (IOGP)–supposedly “the voice of the global upstream industry”–saying the IOGP “welcomes the historic COP21 agreement in Paris last week.” What? They “welcome” the end of fossil energy? Has everyone gone stark….raving….mad?….
    Read More “It’s a Mad Mad Mad Mad Mad Climate Change World”

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    Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy

    If you’ve read MDN for any length of time, you know since February of this year we’ve been hinting and warning that Magnum Hunter Resources (MHR) was heading for bankruptcy (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). Yesterday MHR, a driller totally focused on the Marcellus and Utica Shale, filed for bankruptcy. We consider it a sad day. Continuing low commodity prices coupled with more than $1.1 billion in outstanding debt (the biggest portion being unsecured IOUs or “notes” due in 2020–some $634.6 million worth), finally led the company to file for Chapter 11 bankruptcy protection. MHR says three-fourths of their debt-holders are on board with the bankruptcy filing and also on board with MHR seeking a new $200 million bridge loan to keep operating. Just about all of MHR’s various subsidiary companies are listed in the bankruptcy filing–except for Eureka Hunter, MHR’s midstream/pipeline business. Eureka Hunter is not part of the filing (for now) which likely explains the press release issued just a few days ago promoting Eureka Hunter’s latest stellar performance (see Magnum Hunter De-Listed from NYSE; Still Shopping Eureka Hunter). Here’s the sad news from MHR…
    Read More “Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy”

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    Genscape: Sabine Pass LNG Export Began Accepting Natgas on Dec 10

    Cheniere Energy’s Sabine Pass LNG (liquefied natural gas) export facility in Louisiana is in the process of ramping up for it’s very first shipment of U.S.-produced LNG that will head to a foreign destination. In fact, this will be the very first exported shipment of LNG from the Lower 48 states–ever. Cheniere itself is tight-lipped about the exact date it fires up the plant and begins liquefaction, the process of supercooling natural gas into liquefied natural gas. So how do we know the plant has been activated? Through the ingenious work and service from a company called Genscape. MDN editor Jim Willis sat in on a Genscape presentation at Bloomberg’s offices in New York City in early November. They have a really cool service. Using special cameras mounted on nearby properties, Genscape can tell if natural gas is flowing through a pipeline, or if a plant’s compressors are fired up and working, or even monitor truck and rail shipments into and out of facilities like Sabine Pass. Using their proprietary technology, Genscape says “the first substantial deliveries (46 million cubic feet) of natural gas flowed into the Sabine Pass facility on Dec. 10. Why does MDN care? Because some of that gas either already does, or soon will, come from the Marcellus/Utica…
    Read More “Genscape: Sabine Pass LNG Export Began Accepting Natgas on Dec 10”

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    Evil Corporate Raider Carl Icahn Claims Another CEO Scalp

    In what has become an all-too-familiar pattern, evil corporate raider Carl Icahn has struck again, claiming another CEO scalp. Like he did with Chesapeake Energy, Icahn increased his stake in another oil and gas company, Cheniere Energy, about to export the very first shipment of exported LNG from the Lower 48 states. After Icahn grabbed a big share of Cheniere (13.8%), he forced out the company’s co-founder and CEO, Charif Souki. It’s disgusting, it’s immoral, it’s unethical–but unfortunately, it’s legal and even vaunted by investors who worship at the alter of the Almighty Buck. Like the case of Aubrey McClendon being forced out of the company he founded, Chesapeake Energy, Souki was a maverick, and he erred by taking too much OPM–other people’s money. The firing of Charif Souki certainly takes the luster and excitement off the company’s pending first export shipment of LNG. If Cheniere goes bankrupt (not beyond the realm of possibility as Souki is credited with keeping the company afloat), it will be because of Icahn’s action. Investors can thank old Carl. What’s happening, of course, is that Icahn wants to put some new financial paint on the company so he can flip it in a year or two, adding more billions to his existing billions. Jerk. The company has appointed an interim CEO (board member Neal Shear) while they look for a new hatchet man like Ichan did at Chesapeake with Doug Lawler. Let the firings begin!…
    Read More “Evil Corporate Raider Carl Icahn Claims Another CEO Scalp”

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    Dartmouth Study: Fracking Causes Toxic Metal Wastewater

    We call attention to a newly published study from three researchers at Dartmouth College. The new research paper, recently published in the journal Applied Geochemistry, is titled, “Reductive weathering of black shale and release of barium during hydraulic fracturing” (sorry, we don’t have a full copy to share with you). In reading over the Dartmouth press release, it appears the researchers have found evidence that plain water itself, water without extra chemicals added to it, will, under pressure a mile or more down, facilitate or somehow combine with shale and cause barium to leach out of the shale. The research is based on samples from three drill cores from the Marcellus Shale in Pennsylvania and New York. Our understanding of just what they are saying is far from perfect. It seems to us the importance of what they claim to have found is that produced water, which is water that comes from the borehole long after the initial frack flowback water has returned to the surface, contains a lot of barium (and some mild radioactivity) and that produced water must be disposed of safely. You can’t just cart produced water to the local sewage treatment plant and drop it off. That seems to be what they’re saying with this research. You read the description for yourself and tell us what you think it says…
    Read More “Dartmouth Study: Fracking Causes Toxic Metal Wastewater”

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    Don’t Know Jack: Politician Lobbies for High OH Severance Tax

    The Marcellus and Utica Shale industry, like all shale industries in the U.S., is getting clobbered. Prices are at historic lows for natural gas–with no prospects it will go higher anytime soon (see Natural Gas Prices Hits 14-Year Low – When Will it Rebound?). Drillers (otherwise known as producers or E&Ps) can’t make a profit. Those who are making a profit are realizing profits that are razor thin–like break-even. So what does a “brilliant” politician like Ohio State Rep. Jack Cera (Democrat) lobby and advocate and agitate for? Raising the severance tax on shale drillers in Ohio. How utterly dense can you possibly be to not see that doing such a thing in this low-price climate would essentially shut down the Utica industry in the state? Or perhaps that’s what Jack really wants?…
    Read More “Don’t Know Jack: Politician Lobbies for High OH Severance Tax”

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    Whispers Turning in Chorus, Halliburton/BH Deal in Trouble

    Just one week ago MDN alerted you to what were (then) whispers that the Halliburton buyout of Baker Hughes not be the done deal they portrayed it as (see Is the Halliburton Buyout of Baker Hughes in Trouble?). The whispers that there’s trouble in regulatory paradise around this deal are quickly becoming a chorus. Here are a couple of more articles, from reliable and respected news services, questioning whether or not the merger will happen…
    Read More “Whispers Turning in Chorus, Halliburton/BH Deal in Trouble”