Antero Resources Spending $1B, Employing 2,000 in WV in 2015
Antero Resources’ chief administrative officer, Al Schopp, shared an update on Antero’s activity in WV at the West Virginia Oil and Natural Gas Association’s annual meeting two weeks ago at Oglebay Resort. Schoop’s update was enlightening. Although Antero has cut back from running 15 drilling rigs in WV last year to only 6 this year (due to the low price of natural gas), they remain active and employ 2,000 people in the state–that’s LOCAL people. Since 2009 Antero has spent nearly $5 billion (!) in WV. Some of that money–$500 million–was spent to create a pipeline system to deliver water to drill pads so they don’t have to clog narrow mountain roads with thousands of truck trips. The company spends $20 million a year to employ safety consultants at every major Antero construction, drilling and fracking operation 24/7/365. How long does Antero plan to be a major presence in the Mountain State, and what’s ahead in the near-term? Read on…
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It wasn’t just upstream/drilling companies that presented at the West Virginia Oil and Natural Gas Association’s annual meeting two weeks ago at Oglebay Resort (see today’s story about Antero). Midstream (pipeline and processing plants) companies were also represented. Two of the biggest addressed the delegates: MarkWest Energy and Columbia Pipeline Group. A couple of items piqued our interest in comments made by each. MarkWest’s executive VP and chief commercial officer Greg Floerke teased that it’s not just pipelines that will transport natural gas liquids out of the Marcellus/Utica region–but also railroads. That’s the first time we’ve seen public comments by a MarkWest muckety muck mentioning an alliance with rail to move NGLs out of the northeast. Columbia Pipeline’s executive VP and chief commercial officer Stan Chapman offered an eye-popping statistic: Columbia will triple in size from now until 2018 because of the Marcellus/Utica. According to Chapman, their experience is not unique…
Peters Township, the most populous township in Washington County, PA, is one of the seven selfish towns that sued the state over the zoning provisions in the Act 13 law, eventually winning at the PA Supreme Court level (see 
Last week Kinder Morgan’s Tennessee Gas Pipeline (TGP) filed their official, full application with the Federal Energy Regulatory Commission (FERC) seeking approval for their Orion Project. The project will cost $143 million and construct 13 miles of “looping” pipeline in Pike and Wayne counties, Pennsylvania. The project will boost capacity on the TGP by another 135 million cubic feet per day (MMcf/d), allowing TGP to pump more Marcellus Shale gas to Mid-Atlantic and New England states. If all goes according to plan, the TGP Orion upgrade will be complete and in-service by June 2018…
We continue to bring you news about what may seem to be esoteric and perhaps not relevant for most MDN readers–but we think it is important. Yesterday we told you about an increase in “short selling” of Gastar Exploration’s stock (see 
Last week MDN reported on a new junk science study that claims to have discovered the closer you live to fracking in Pennsylvania, the more likely your baby will be born prematurely (see 
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: can waterless fracking bypass Cuomo’s frack ban?; big money for PA towns from Marcellus impact fee; will natgas ever get over $3 again?; rig counts continue to fall; shale firms snap up $50 oil hedges; and more!
Sure looks to us like time has finally run out for Marcellus/Utica driller Magnum Hunter Resources (MHR). The company is now either shopping itself looking for a buyer, or preparing to file for bankruptcy. Our evidence? On Friday, MHR suspended monthly dividend payments on their stock and hired financial advisory firm PJT Partners and law firm Kirkland & Ellis to advise MHR’s board of directors “regarding potential strategic alternatives to enhance liquidity and address the Company’s current capital structure.” According to one analyst we’ve read, addressing a company’s capital structure is coded language for “we’re about to file for bankruptcy protection.” Here’s MHR’s recent history and the announcement from Friday, to provide more context…
If you stick a cube of sugar in a batch of poison, the poison will still kill you, although it will taste better. Part of PA Gov. Tom Wolf’s poisonous budget that went down in flames last week (see 
A Belmont, Ohio man is accused of stealing more than $100,000 worth of equipment from two CNX Marcellus well sites just across the border in Greene County, PA. Two thefts happened in mid-August, and a third one on Sept. 21. Matthew Bartimus, currently hailing from Bethesda, OH, is accused of stealing a flaring chimney, pipeline choking systems, shutoff values and numerous studs and bolts. Not stuff you just throw on eBay or peddle at the local flea market. But then nobody ever accused common criminals of actually having any brains. Apparently he had a market for his stolen goods from August because Bartimus showed up to steal again in September. This time, however, he was caught red handed by employees arriving for work who held Bartimus until the police arrived. In later questioning, Bartimus confessed to the thefts…
The United Kingdom (as in Merry Old England) is finally, seriously, considering permits to allow shale fracking in the country. It’s taken a long time, and it’s certainly not a done deal yet. But it’s getting much closer. A Conservative Member of Parliament (MP) from a district in the north of England likely to see shale drilling when/if it happens recently traveled 3,500 miles to visit Pennsylvania, to see the effects of shale drilling firsthand. We applaud the MP’s efforts to see it up close. Unfortunately, Conservatives in the UK are more like RINOs here–there really aren’t all that many true conservatives in the socialistic UK. So when our “Conservative” MP came calling, one of the “expert” groups he took a tour with was the nutty Martians, a small group of anti-drillers in Butler County called the Mars Parent Group (see 
Thank God for the U.S. Court of Appeals for the Sixth Circuit! Last Friday the Sixth Circuit issued a stay on the odious and overreaching Environmental Protection Agency (EPA)/Army Corps of Engineers’ (ECA) so-called update that redefines Waters of the United States (WOTUS) to include just about everything, including mud puddles (see 
Early last week MDN told you about NY Gov. Andrew Cuomo’s disastrous new pick to run the Dept. of Environmental Conservation (DEC), the agency that oversees oil and gas drilling in the Empire State (see 
Short selling of Gastar Exploration stock has increased–certainly not a positive sign for the company. From time to time we bring you a story, like this one, that on the surface appears to be of interest only for investors rather than landowners or companies that sell goods and services to the shale industry (supply chain). MDN does have a number of investors who subscribe, but if you think stories like this one are only for investors, you are mistaken. Landowners, supply chain companies, even those in elected government are all affected and should pay attention. Short selling is when investors buy stock on a gamble that the stock will decrease–not increase–in price. When a company’s stock decreases in price, the company has a lower market capitalization and it makes it (a) harder to borrow money, and (b) if they can borrow the money, they have to do it at a higher interest rate, making business activities less profitable. If we cut out all of the connections from point A to point B and just boil it all down: when a driller’s stock price decreases significantly, it means less drilling and financial instability for the company, which does not benefit landowners and the supply chain companies that want to sell goods and services to that driller. In other words, it means less royalties, less business opportunities, less jobs and less economic impact. That’s why we report stories like the following…
The oil and gas industry is far better at self-regulation and self-policing than any government agency can provide. Governmental regulators take forever to inflict new regulations–and they take even longer to lift those regulations when they’re no longer necessary or useful (witness the ban on crude oil exports in place since the early 1970s that the House of Representatives voted to lift last Friday, but Obama has promised to veto). A great example of self-regulating and self-policing is the American Petroleum Institute (API). Last week the API issued updated hydraulic fracturing standards with an aim to continuously improve well integrity, groundwater protection, and environmental safety. While API’s recommended practices are not binding on drillers, API standards are highly respected and used by many drillers–those who care about doing it right…
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