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Marcellus Drilling News
  • American Energy Partners | Antero Resources | Ascent Resources | Chesapeake Energy | Chevron | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Range Resources Corp | Rice Energy | Seneca Resources | Southwestern Energy

    Top 10 Marcellus/Utica Drillers by Number of Permits May-Aug 2015

    November 18, 2015November 18, 2015

    MDN recently published Volume 2 of our 2015 Marcellus and Utica Shale Databook–a research book that chronicles who’s drilling and where in the Marcellus/Utica region. We thought it would be interesting to bring you some of the results from this latest volume. Below is a list of the top 10 Marcellus/Utica drillers based on the number of permits they were issued from May through August 2015. The numbers of permits shown are for discrete, individual wells. Each well drilled typically involves multiple permits–one to begin drilling, another to frack, etc. We toss out all of the multiples and show the numbers for discrete, individual wells. The top driller ranked by number of permits received may just surprise you–it did us. In addition to the list, we’ve included stock charts for each company to show you just how badly the industry has been hit over the past year. Stock prices for most of the top 10 have plunged…
    Read More “Top 10 Marcellus/Utica Drillers by Number of Permits May-Aug 2015”

  • Energy Services | Industrywide Issues | M&A | Marathon Petroleum | MarkWest Energy

    Marathon Ups Cash Offer for MarkWest 2nd Time – Deal in Trouble?

    November 18, 2015November 18, 2015

    For a second time in as many weeks, Marathon Petroleum has increased the amount of cash it’s willing to pay as part of the deal to purchase Marcellus/Utica midstream giant MarkWest Energy. Last week Marathon upped the cash portion of the deal from $675 million to $1.075 billion–a hefty $400 million increase (see Marathon Increases Cash Dowry for MarkWest Buyout by 63%). Yesterday Marathon announced they have increased it again–they’re now willing to pay $1.28 billion in cash, in addition to unit swaps and other financial high jinks in a deal worth $15 billion (initially was worth $20 billion). That is, Marathon has just added another $205 million to the dowry they’re offering. Does the increase have anything to do with former MarkWest CEO John Fox telling everyone MarkWest is crazy for selling itself for such a low price (see Former MarkWest Energy CEO Urges Vote Against Marathon Buyout)? MarkWest is attempting to win a PR battle against Fox. In their announcement about receiving more cash as part of the deal, MarkWest claims three big unitholders (i.e. shareholders) representing a collective 15% of the outstanding units (i.e. shares) say they will vote in favor of the deal. That’s still a long way from 51%. We wonder if this deal is in trouble…
    Read More “Marathon Ups Cash Offer for MarkWest 2nd Time – Deal in Trouble?”

  • Energy Companies | Southwestern Energy

    Southwestern Energy Borrows $750M to Pay Off Other Borrowed Money

    November 18, 2015November 18, 2015

    One of the largest drillers in the Marcellus/Utica, Southwestern Energy, announced yesterday they’re borrowing $750 million in a three-year term loan–to pay off borrowed money. Yes, we know, it’s the American Way to borrow money to pay off other debts. Dave Ramsey wouldn’t be impressed–and neither are we. But that’s the way the game is played…
    Read More “Southwestern Energy Borrows $750M to Pay Off Other Borrowed Money”

  • Earthquakes | Industrywide Issues | Research

    New Report Finds Less than 1% of Injection Wells Cause Earthquakes

    November 18, 2015November 18, 2015

    One of the news stories that is constantly recycled by anti-drillers and a sycophantic media is that “fracking causes earthquakes.” They intentionally perpetuate a knowing lie because, well, because it’s so effective. Who in their right mind would support an activity that causes earthquakes?! Here’s the thing: Fracking itself has been tied to earthquakes in less than five instances worldwide. Statistically zero. However, wastewater from fracking that’s disposed of via a deep injection well (sometimes called a saltwater well) has caused earthquakes. So antis try to link the two together, blurring the lines and claiming fracking itself is the cause. Our friends at the top notch Energy in Depth has just issued a research paper (full copy below) that quantifies just how often earthquakes are tied to injection wells. What they found is that earthquakes have been tied to (caused by) 218 wastewater injection wells. Know how many injection wells there are in the U.S.? Around 40,000. If you do the math, that’s about one-half of one percent of injection wells cause earthquake problems…
    Read More “New Report Finds Less than 1% of Injection Wells Cause Earthquakes”

  • Clearfield County | Energy Companies | Energy Corporation of America | Greene County (PA) | Industrywide Issues | Pennsylvania | Regulation | Statewide VA | Virginia

    Virginia Rejects Deal for DC-based Utility to Buy Marcellus Wells

    November 18, 2015November 18, 2015

    A Washington, DC-based natural gas utility company, Washington Gas (WGL Holdings), announced in May they had cut a $126 million deal with Energy Corp. of America to purchase a 96% interest in 22 Marcellus Shale gas wells in Greene County, PA and another 3 shale wells in Clearfield County, PA. The gas flowing from those wells would go to WGL’s customers in the State of Virginia, requiring state approval of the deal. The Virginia State Corporation Commission (VSCC) turned them down and nixed the deal. Why? VSCC said WGL’s assumptions about how much the wells will produce, and about the price of gas over the next 20 years, were not solid. Furthermore, the VSCC didn’t like that WGL is essentially shifting the risk of well production/prices onto the backs of rate payers. More deals like this are rumored to be coming down the pike. Will they get nixed too?…
    Read More “Virginia Rejects Deal for DC-based Utility to Buy Marcellus Wells”

  • Dominion Energy | Economic Impact | Electrical Generation | Energy Services | Industrywide Issues | Jobs | Pipelines | Research | Statewide VA | Virginia

    Dominion Investing $10.1B, Creating 20K New Jobs in VA Next 5 Yrs

    November 18, 2015November 18, 2015

    It’s a shame to have to prove to people what should be self-evident–that building new natural gas electric plants and natural gas pipelines will bring both new jobs and inject billions into a state’s economy–but that’s what you sometimes have to do. You have to prove it to counteract the negative drumbeat from radical anti-drillers and leftist mainstream media. So Dominion, a huge utility/pipeline company operating in 14 states including the Marcellus/Utica region, commissioned a study that looks at how many jobs and how much money will be pumped into the State of Virginia over the next five years if all of the pipeline and electric plant projects they have on the books happen. The study (full copy below) finds Dominion is set to invest $10.1 billion and create nearly 12,000 jobs over the next five years in the Old Dominion. A sizable portion of the new projects and jobs are tied to natural gas…
    Read More “Dominion Investing $10.1B, Creating 20K New Jobs in VA Next 5 Yrs”

  • Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

    Update on Study that May/Might/Possibly Show Stressors from Drilling

    November 18, 2015November 18, 2015

    In September MDN told you about a newly published study that purports to evaluate potential “stressors” on streams from unconventional (i.e. shale) oil and gas drilling–including drilling in the Marcellus/Utica (see New Study Evaluates Stressors on Streams from Shale Drilling). As we said at the time, the study appears to be real science as opposed to the usual political science that passes for real science. The one great negative, in our opinion, is that it was published in a non-peer reviewed journal that publishes a lot of “fracking will kill you” bull–PLOS ONE. The study has popped back up in the news once again. We find it interesting that newspapers run this headline–“Study indicates gas drilling can impact rivers, streams”–and a few paragraphs into the story, one of the lead authors of the paper says this: “What we’ve developed is a predictive model…We have not proven anything about whether shale gas development is affecting streams or not.” You always see lots of “cans” and “maybes” and “mights” and “possiblys” when it comes to anti-drilling mainstream media. How about sticking to “does” and “will” and “proven” instead? In other words, let’s have some hard science instead of theoretical science. Prove your statements. Do some in-the-field research. Here’s the latest update on a study that “may” indicate “some” problems with shale drilling…
    Read More “Update on Study that May/Might/Possibly Show Stressors from Drilling”

  • Energy Companies | Hess

    Hess Proud of Pleasing Those Who Want to Shut the Company Down

    November 18, 2015November 18, 2015

    Has the world always been this screwed up? Perhaps. How do you explain one of the world’s largest fossil fuel companies, Hess Corp., trying to please the lunatics who are trying to shut them down? Do you call that self-loathing? Do you call it fear? Do you call it dysfunctional co-dependency? Whatever you call it, Hess is crowing about the “honor” of being recognized as a “leader” among S&P 500 companies for “climate change transparency”. This “honor” has earned Hess a position on something called the “2015 Climate Disclosure Leadership Index (CDLI)”–a hall of fame thing cooked up by a group of self-righteous global warming true believers called the CDP who would love nothing better than to see oil and gas companies like Hess go extinct…
    Read More “Hess Proud of Pleasing Those Who Want to Shut the Company Down”

  • Energy Companies | EXCO Resources

    EXCO Board Member Goes on Company Stock Buying Bender

    November 18, 2015November 19, 2015

    [Note: This story was updated on Nov. 19, see note below.]

    EXCO Resources’ Board of Directors member John Wilder, Jr. has been on a one-man stock-buying bender over the past couple of weeks. You may recall Wilder purchased 297,100 shares of EXCO stock for ~$315,000 at the end of October (see EXCO Stock Short Selling Goes Up; Board Member Buys 297K Shares). Last Friday and again on Monday Wilder purchased another ~$830,000 worth of company stock (~793,000 shares), for a grand total of $1.14 million worth of stock (1,090,063 shares). Why the sudden purchases?…
    Read More “EXCO Board Member Goes on Company Stock Buying Bender”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Nov 18, 2015

    November 18, 2015November 18, 2015

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Seneca continues to curtain production; Gastar appoints new chairman; natgas tugboat coming courtesy the Ohio Valley; natgas bumped off NY nuke plant; Utica rig count slides more; midstream dealmaking; Chesapeake a good deal?; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Nov 18, 2015”

  • Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Inflection Energy | Litigation | Lycoming County | Pennsylvania

    PA Judge to Antis Seeking Drilling Delay: Put Up $5.69M or Shut Up

    November 17, 2015November 17, 2015

    Gavel-falling.jpgHere’s a story we LOVE bringing you. A Pennsylvania county judge, Senior Judge Brendan J. Vanston (Lycoming County), has just told an anti-driller to put up or shut up. Inflection Energy had been legally permitted to begin drilling a well in Loyalsock Township in Lycoming County. As they so often do, an anti-driller objected, filing an appeal to stop the drilling in an attempt to delay it by (ab)using the courts. The judge said, in essence, “OK, if you want to play this game, you need to put up $5.69 million as a bond–money you will lose if you don’t prove your frivolous case.” We predict the case will quickly disappear and Inflection will begin drilling…
    Read More “PA Judge to Antis Seeking Drilling Delay: Put Up $5.69M or Shut Up”

  • Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

    WV Forced Pooling Bill Coming Around Again in 2016

    November 17, 2015November 17, 2015

    West Virginia landowners and mineral rights owners get prepared: the forced pooling issue is coming around again. After five years of trying, it seemed that a forced pooling bill was finally going to pass in West Virginia during the 2015 WV 60-day legislative session. But at the literal eleventh hour of the last day of the session, it failed (see The Real Story of Why Forced Pooling Bill Failed in WV). In April we told you that the forced pooling bill may get a vote this fall, although that never materialized (see WV Forced Pooling Bill HB 2688 May Get Another Vote This Fall). However, yesterday legislators got a look at a revised version of the bill that died earlier this year. The plan, as it currently stands, is to re-introduce it in January when the WV legislature meets for its annual 60-day session…
    Read More “WV Forced Pooling Bill Coming Around Again in 2016”

  • Economic Impact | Industrywide Issues | Ohio | Pipelines | Processing Plants | Research | Statewide OH

    Fall 2015 List of Shale-Related Infra Projects in OH – $33.7B!

    November 17, 2015November 17, 2015

    We’re excited to share with you an update to a report we LOVE. The sharp researchers at law firm Bricker & Eckler produce a twice yearly called “Shale Economic Development Overview.” It is a list of projects details, by county in Ohio, of those projects started or planned because of shale drilling. The Spring 2015 edition is embedded below. The first edition of this list was published in October 2013 and showed projects worth $12.2 billion. In October 2014 that number had risen to a staggering $21.5 billion. In the Spring 2015 edition, the total rose to $28 billion. This new edition for Fall 2015 shows a total investment in Ohio’s economy of a staggering $33.7 billion! The fact that investments in Ohio continue to increase is a testament to the fact that although drilling has greatly slowed, the midstream (pipelines and processing plants) have not…
    Read More “Fall 2015 List of Shale-Related Infra Projects in OH – $33.7B!”

  • Anadarko | Anti-Drilling/Fossil Fuel | Crime | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania

    Earth First Protesters Convicted, Fined for Blocking PA Drill Site

    November 17, 2015November 17, 2015

    A couple of radical “Earth First” protesters were fined $400 each last Friday in a Lycoming County, PA court, having been convicted of creating a hazardous situation by “crossing the line” according to the judge. The conviction stems from a case we reported to you last year when a group of nutters shut down an Anadarko drilling site in Lycoming County by chaining themselves to a 12-foot long, shrapnel-filled concrete pipe they had laid across a road (see Protesters Shut Down Anadarko Drill Site in Lycoming County, PA). First responders had to risk their own lives to cut them free, through concrete intentionally embedded with shrapnel (we wouldn’t have been as understanding or gentle as the first responders). Just to show you how big a splash a few committed psychos protesters can make, one of the two fined for $400 (and ordered to perform 50 hours of community service) in Lycoming County last week was also one of the idiots protesters who endangered fans at the Indianapolis Colts/Carolina Panthers NFL game by rappelling down from an upper deck to unfurl a big sign opposing the Cove Point LNG plant (see Cove Point Protesters Disrupt Monday Night Football Game on TV). Same dude–a serial lawbreaker…
    Read More “Earth First Protesters Convicted, Fined for Blocking PA Drill Site”

  • Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources

    GreenHunter Res. 3Q15: Net Loss Decreases, Brief MHR Mention

    November 17, 2015November 17, 2015

    Yesterday GreenHunter Resources, the wastewater subsidiary of Magnum Hunter Resources (MHR), filed its third quarter 2015 financial and operational update. GreenHunter also held an earnings/analyst conference call to discuss the company’s performance in the last quarter and to look ahead at what’s coming. The company continues to lose money, but the money they’re losing is less now than it was a year ago–and the numbers are not all that big in the scheme of things. GreenHunter lost $1.3 million in 3Q15, compared to a $3.9 million loss in 3Q14. Things are getting better financially for the company. The two things we were most interested in were (1) any mention of the lawsuit they launched against two former vice presidents who allegedly conspired with a competitor against the company (see GreenHunter Sues 2 Former VPs + OH Competitor for Conspiracy); and (2) any word about GreenHunter’s parent company MHR and an impending declaration of bankruptcy (see Dire Straits: Magnum Hunter Tells SEC Heading for Bankruptcy). In scouring the press release (below) and transcript of the analyst call (portions below), we found only a single very brief reference to MHR’s problems, and nothing about the lawsuit…
    Read More “GreenHunter Res. 3Q15: Net Loss Decreases, Brief MHR Mention”

  • Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Statewide VA | Statewide WV | Virginia | West Virginia

    Time to Support EQT Mountain Valley & Equitrans Pipelines @ FERC

    November 17, 2015November 17, 2015

    It’s time for you, pro-drilling supporters, to weigh in and make comments to the Federal Energy Regulatory Commission (FERC) on your support for two important pipeline projects: EQT’s Mountain Valley Pipeline and EQT’s Equitrans Expansion project. The Mountain Valley Pipeline project is a new $3.5 billion natural gas pipeline running 301 miles (down from 330 miles) from Wetzel County, WV to Pittsylvania County, VA, connecting to the existing Equitrans pipeline along the way (see Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time). Mountain Valley will flow 2 billion cubic feet per day (Bcf/d) of natgas and is projected to be built and in-service around the fourth quarter of 2018. The Equitrans Project will upgrade compressor stations, add approximately eight miles of pipeline connectors to upgrade capacity on the Equitrans Pipeline from southewestern PA into WV. The $100 million project, when completed, will expand capacity on the Equitrans pipeline by 600 million cubic feet per day (Mmcf/d). The Equitrans project is also due to be completed in 4Q18. Here’s the details for how you can show your support for these two important projects. But hurry, you only have until Nov. 26 to provide your comments/show support…
    Read More “Time to Support EQT Mountain Valley & Equitrans Pipelines @ FERC”

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