Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Monongalia County | Research | West Virginia

Researchers Look for Life in Marcellus Shale – Natural Fracking?
July 29, 2015July 29, 2015

This sounds like something out of a Jules Verne novel. You may recall from school that Verne wrote some of the earliest sci-fi adventures ever, like 20,000 Leagues Under the Sea and Journey to the Center of the Earth. In Journey, Verne wrote about strange and mysterious critters that live deep in the earth–in rock caverns. Turns out Verne may not have been so far from the truth after all. And there’s a tie-in with the Marcellus Shale and with fracking. In November West Virginia University and Ohio State University received an $11 million grant by the federal government to study the Marcellus and Utica Shale (see WVU/OSU Get $11M Grant to Study Shale Energy Best Practices). Work is progressing. Researchers with the Marcellus Shale Energy and Environment Laboratory are taking rock core samples to see if there are microbes living 7,000 feet below the surface in the Marcellus Shale rock layer that could, if present, potentially be “fed” causing them to multiply and grow and maybe even naturally frack (break apart) rock layers, allowing us to get more natural gas and oil from those layers. It sounds pretty far-fetched–but stranger things have happened! Here’s the story of looking for life miles below the surface of the earth in the Marcellus…
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Belmont County | Housing | Industrywide Issues | Ohio | Supply Chain

Rural Belmont County, OH Gets Another New Hotel – in St Clairsville
July 29, 2015July 29, 2015

St. Clairsville with a population of just over 5,000 is the county seat for rural Belmont County, OH. Small villages like St. Clairsville typically have a handful of stores and other businesses. It’s highly unusual for a small town like St. Clairsville to score a major new hotel–but it just has, thanks to the Utica Shale. Belmont County is in the epicenter for the sweet spot in the Utica Shale. Even with drilling scaling back from low prices, there is still plenty of activity–especially in Belmont County. Commonwealth Hotels yesterday announced the opening of the newly constructed 92-room Candlewood Suites St Clairsville. Located at Mall Ring Road, the Candlewood Suites is the newest hotel in the region, conveniently located near I-70…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jul 29, 2015
July 29, 2015July 29, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Wed, Jul 29, 2015”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Wastewater

GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH
July 28, 2015July 28, 2015

Big news for GreenHunter Resources: They finally have two more wastewater injection wells up and running at their Mills Hunter facility in Meigs County, OH. In May we reported that GreenHunter was hoping to have four new injection wells operating at the Mills Hunter facility by the end of June, for a total of six operating wells (see GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells). However, Mills Hunter has just two new wells now operating, for a total of four, and it’s nearly August. GreenHunter’s COO Kirk Trosclair continues to express his frustration at delays from the Ohio Dept. of Natural Resources (ODNR), saying instead of taking 30-45 days for approvals (which is what it used to take), it’s now taking ODNR more than 90 days to issue approvals. GreenHunter has two more wells at the Mills Hunter facility working their way through the approval process now. But let’s not dwell on the negatives…
Read More “GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH”
Energy Companies | Southwestern Energy

Southwestern Energy 2Q15: Production Up 30%, Net Inc. Down 481%
July 28, 2015July 28, 2015

Southwestern Energy, one of the largest natural gas producers in the Marcellus Shale and the fourth largest natural gas producer in the Lower 48 States, issued their second quarter 2015 update yesterday. There is a lot to digest in this massive update. Southwestern, you may recall, added to their already-considerable northeastern Pennsylvania Marcellus holdings by purchasing WPX’s NEPA leases, wells and operations in a $300 million that closed in February of this year (see WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern). So this 2Q15 update will be the first full quarter to include numbers from the WPX purchase. Late last year Southwestern picked up a massive amount of new acreage and already-drilled wells in the southwestern portion of the Marcellus–most of it in West Virginia–in a $5.375 billion deal with Chesapeake Energy (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). Yes, Southwestern is serious about the Marcellus! What do the 2Q15 numbers for Southwestern show?…
Read More “Southwestern Energy 2Q15: Production Up 30%, Net Inc. Down 481%”
Energy Companies | Southwestern Energy

Southwestern Energy Slide Deck w/MDN’s Favorites Identified
July 28, 2015July 28, 2015

Southwestern Energy Company turned in their latest quarterly update yesterday (see our companion story today). Perhaps the biggest eye-opener for us is learning that Southwestern is now the fourth largest natural gas producer in the United States (lower 48 states). In addition to yesterday’s quarterly update, Southwestern released their latest PowerPoint presentation for analysts a couple of weeks ago. We have a copy of that presentation below along with our list of favorite slides. Lots of charts and graphs and yes, even useful information for landowners, investors, supply chain companies and competitors…
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Energy Companies | Gulfport Energy

Gulfport Releases Half of 2Q15 Update – The Good News Part
July 28, 2015July 28, 2015

Gulfport Energy released their second quarter 2015 operational (but not financial) update yesterday. Among the highlights: Production was up a huge 196% year over year–to an average 473.9 million cubic feet equivalent per day (MMcfe/d). Of that number, 457.6 MMcfe/d (97%) came from the Utica Shale. Gulfport’s current production mix is 77% natural gas, 13% natural gas liquids and 10% oil. How much money did Gulfport get for their products? They received, on average, $1.99 per Mcf for natural gas, $0.30 per gallon for NGLs, and $47.40 per barrel of oil. If you average it all together, it works out to be $2.60 per Mcfe. Gulfport is clever. They released the good news yesterday–how much production is up, etc. But they haven’t released the bad news about earnings–yet. The bad news shoe will drop on August 5th when Gulfport publishes their 2Q15 financial report. Meanwhile, let’s bask in the glow of good news…
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CONSOL Energy | Energy Companies

CONSOL Energy 2Q15: Marcellus Production Up 64%, CNX Rev Down 12%
July 28, 2015July 28, 2015

CONSOL Energy released their second quarter 2015 operating and financial update today. No mention of the pressure they are currently under by their #1 shareholder to spin off or sell off the gas drilling division (see CONSOL’s #1 Stockholder Says Spin Off CNX Gas…or Sell It). There are some bright spots from CONSOL for 2Q15, including a 64% increase in Marcellus Shale production (39 billion cubic feet equivalent in 2Q15) and a 524% increase in Utica Shale production (1.7 Bcfe in 2Q14, 10.6 Bcfe in 2Q15). If you read through the update you’ll find CONSOL believes Utica dry gas may be where they focus their future efforts, given recent results from some of their drilling. CONSOL is a complicated company–a lot of their operations and revenue deal with coal. It was a coal company long before it began drilling for natural gas. To analyze their financials–separating out the gas from the coal–is not easy. What we can tell you is that revenue from natural gas, NGLs and oil went down year over year, from $229.7 million in 2Q14 to $201.9 million in 2Q15 (12%), which isn’t nearly as bad as some of the other drillers in the Marcellus/Utica…
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Economic Impact | Industrywide Issues | Research

Marcellus/Utica Provide 85% of Natgas Production Growth Since 2012
July 28, 2015July 28, 2015

If you look at the incredible increase in shale production from 2012 to the present, 85% of that growth comes from two shale plays: the Marcellus and the Utica. So says the venerable U.S. Energy Information Administration. Why from those two plays? According to the EIA, “because of ongoing improvements in precision and efficiency of horizontal drilling and hydraulic fracturing occurring in those regions.” Not only do we have the biggest reserves in the northeast–we also have better tech and ways of getting at those reserves. How cool is that?…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA House Speaker Stands Firm Against Gov Wolf’s Severance Tax
July 28, 2015July 28, 2015

Thank God for Pennsylvania House Speaker Mike Turzai, Republican from Allegheny. Turzai continues to stand against the lunacy of Tom Wolf’s insane budget proposals, including a proposed Marcellus Shale severance tax that would further gut shale drilling in the state–handing the money raised over to teachers’ unions. Turzai said it’s time to think about overriding Wolf’s veto of the proposed Republican budget–a plan which balances the budget instead of running up the tab as Wolf would do. The Republican budget would INCREASE spending on education (something mainstream media doesn’t tell you) all while not increasing taxes on the middle class and without killing the Marcellus industry with a new/high tax. Socialist Tom Wolf won’t hear of it. So Turzai is putting out the word: Are there 16 Democrats in the House and 4 Democrats in the Senate that will be brave and bipartisan and reach across the isle to vote for a sane budget–to override Wolf’s veto? Apparently not yet–but perhaps there will be in time. Meanwhile, Wolf’s dirty tricks division continues to launch advertisements to smear Republicans, something Turzai calls “tawdry and unproductive”…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Antis Plan to Protest Pipeline Talk Tonight in Lancaster County
July 28, 2015July 28, 2015

A small group of anti-fossil fuel protesters plans to disrupt an information meeting being hosted by the Chamber of Commerce in Lancaster County tonight. The event will feature representatives from Williams discussing and sharing information about their planned $3 billion Atlantic Coast Pipeline project–a project largely embraced by the public but opposed by a few small pockets of dedicated protesters, one such group being Lancaster Against Pipelines. The Atlantic Coast project will flow Marcellus Shale gas to Mid-Atlantic and southern states. Most of the protesters are too cheap to buy a $25 ticket to the event, so they’ll stand outside and make fools of themselves by chanting and hollering at those who enter the meeting. We encourage a contingent of pro-drillers to show up and stand outside to show support for the project. It’s time to show everyone that supporters far outnumber detractors…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Pipeline Uses Eminent Domain Against SWPA Landowners
July 28, 2015July 28, 2015

Confession: We have a tough time with eminent domain cases filed by pipeline companies. We believe property rights are sacrosanct–you don’t tell me what I can and can’t do with my property, and I don’t tell you what you can and can’t do with your property. But then zoning laws enter the picture. And statewide bans on fracking. Etc. What happens if all but a handful of landowners sign up to allow a pipeline? Should an entire project that when built results in a greater “good” for society get nixed because of half a dozen of holdout landowners? Tough tough issues. The latest skirmish comes from Washington County, PA where Sunoco Logistics has filed eminent domain cases against a handful of landowners who won’t allow new construction through their property for the Mariner East Pipeline project. Sunoco has taken them to court and seeks leases on a total of 11 acres…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline | UIL Holdings

UIL Invests $80M in Kinder Morgan’s Northeast Energy Direct Pipeline
July 28, 2015July 28, 2015

UIL Holdings, a Connecticut-based utility with 725,000 electric and natural gas customers in two states, is investing $80 million in Kinder Morgan’s Northeast Energy Direct (NED) natural gas pipeline project that will stretch from NY to near Boston, MA to bring cheap, abundant and clean-burning natural gas to New England. One of UIL’s subsidiary companies is Berkshire Gas Company, one of NED’s anchor shippers. Berkshire, you may recall, is at capacity now with respect to natural gas supplies they receive from Kinder’s Tennessee Gas Pipeline. Berkshire has put a moratorium on accepting any new hookups for natural gas in Franklin County, MA (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). You may also recall that UIL is the company that offered the City of Philadelphia the best deal it will ever get to sell the city-owned Philadelphia Gas Works utility, a deal ultimately scuttled by the Democrat-controlled–and profoundly corrupt–Philadelphia City Council (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). UIL will get a 2.5% ownership stake in NED in return for it’s $80M investment…
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Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Cabot Says Constitution Pipeline Construction to Begin this Fall
July 27, 2015July 27, 2015

Last Friday during the Cabot Oil & Gas quarterly earnings call update with analysts, Cabot’s CEO Dan Dinges provided an important update on the Constitution Pipeline, a 125-mile pipeline that will stretch from the gas fields of Susquehanna County, PA into New York, to Schoharie County. It is a critically needed pipeline to get Cabot’s natural gas in Susquehanna County to markets throughout the northeast and New England. Although Williams is the lead company building the pipeline, Cabot is the other primary partner in the project. Currently the Constitution is 100% FERC authorized and they have 100% of the rights of way leases signed for the project. The only hold-up is the New York State Dept. of Environmental Conservation in granting 401 Water Quality Certificates that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. According to Dinges, they expect NY to issue those permits any day now…
Read More “Cabot Says Constitution Pipeline Construction to Begin this Fall”
Coterra Energy (Cabot O&G) | Energy Companies

Cabot O&G 2Q15: Production Up 8%, Net Income Down 109%
July 27, 2015July 27, 2015

Last Friday Cabot Oil & Gas released their second quarter 2015 operational and financial update, along with holding a conference call to update financial analysts. Below is the Friday press release/update with the particulars of Cabot’s performance during 2Q15. There’s a lot to love about Cabot, one of our favorite Marcellus drillers. Production in the Marcellus year over year for the second quarter was up 7% from 2014 (total natgas production up 8% for all plays). The company continues to get leaner and meaner when it comes to controlling costs. For the first half of the year in 2015, Cabot has managed to trim the time it takes them to drill a well by four days from the time it took them just last year–meaning a 15% cost savings overall. Cabot, whose operations and drilling program is a fraction of the size of Chesapeake Energy, is worth twice as much as Chesapeake. Cabot’s market capitalization (the amount of stock issued times the price per share) is $10.96 billion as of this morning. Chesapeake’s market cap? $5.51 billion. That must really frost corporate raider Carl Icahn. 🙂 Anywho, Cabot is not immune to the brutally low prices for natural gas they receive in the northeast. In Cabot’s small neck of the woods, prices for natural gas are the lowest in the country. And that means Cabot has, finally, gone into negative earnings territory…
Read More “Cabot O&G 2Q15: Production Up 8%, Net Income Down 109%”
Coterra Energy (Cabot O&G) | Energy Companies

Cabot CEO Dan Dinges Provides Update for 2Q15 & Balance of 2015
July 27, 2015July 27, 2015

Today is Cabot Day on MDN–reporting on their 2Q15 results. We’ve told you about Cabot’s update on the Constitution Pipeline, and we’ve told you about their financial/operating results. In addition, Cabot hosted a quarterly earnings conference call with analysts from big banks/investment firms. Cabot CEO Dan Dinges gave a succinct and good overview of the performance for Cabot over the past three months, along with some “forward looking” predictions about what the company plans for the balance of 2015. Here is a transcript of Dan’s remarks from Friday…
Read More “Cabot CEO Dan Dinges Provides Update for 2Q15 & Balance of 2015”