EXCO 2Q15: Marcellus Production Down 23%; Net Income Down 1,991%
EXCO Resources is a driller with operations in four different regions: North Louisiana, East Texas, South Texas, and the Marcellus/Utica region. Today EXCO posted their second quarter 2015 financial and operating results. During the first quarter EXCO sidelined any new Marcellus activity (see EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15). That trend continued in 2Q15–EXCO drilled no new Marcellus wells during the quarter. In fact, MDN told you in May that EXCO is shopping its 150,000 Marcellus Shale acres (see EXCO Looks to “Restructure” (Sell?) 150K Marcellus Acres). Overall the company’s revenues dropped, like other drillers, in 2Q15. Year over year EXCO revenues dropped 49%. Factoring in expenses, EXCO’s net income was a massive loss, dropping 1,991% (they show a net loss for 2Q15 of minus $454.2 million). EXCO’s Marcellus production, because they haven’t drilled any new wells, decreased 23% from 2Q14. Below is the portion of the update dealing with the Marcellus…
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Here’s one flying under the radar that we didn’t know about–until now. In the spring of 2013 Magnum Hunter Resources (MHR), a driller now focused totally on the Marcellus and Utica Shale region, dismissed it’s accounting firm. Apparently some investors didn’t like that action and accused MHR’s senior management and board of directors of “breaches of fiduciary duties and other matters.” The investors filed lawsuits in seven different courts alleging misconduct. As of June 22, the last of those lawsuits was dismissed. In fact, all of the lawsuits filed have been dismissed and MHR paid out zero dollars to settle. Yes, it cost the company big money to defend themselves, but they held firm and didn’t cave and in the end they were exonerated from any wrongdoing…
We have plenty of EQT news today, but none of it is (for us) as big as this: EQT finished fracking their very first Utica Shale well in Greene County, PA last week, a well that they call “the most technically challenging well” they’ve ever drilled. But man oh man was it worth it! The EQT Utica well is gargantuan. It is the new reigning #1 champ for any on-shore shale well anywhere in the world that we’re aware of when it comes to production. The EQT Utica well produced a truly astonishing initial production (IP) of 72.9 million cubic feet of natural gas per day (MMcf/d). The previous record-holder was a Range Resources Utica well in Washington County, PA at 59 MMcf/d (see