Marcellus & Utica Shale Story Links: Tue, Jun 23, 2015
The âbest of the restâ â stories that caught MDNâs eye that you may be interested in reading:
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Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B
Sunday evening MDN spotted what has to be THE biggest midstream story of 2015: Somebody wants to buy out and take over Williams Companies. The biggest midstream story of 2014 was the buyout of Access Midstream (the former Chesapeake Midstream) by Williams, creating a company that is nearly the size and certainly a worthy rival of the country’s biggest pipeline company Kinder Morgan (see Big News: Williams Partners Buying Access Midstream for $6B). Williams said at the time the “total transaction value” (or TTV) would create a combined company worth nearly $50 billion (see Deal Details for Williams/Access Midstream Merger â TTV of $50B!). Sunday evening Williams said, in a pair of prepared press releases, that somebody (they wouldn’t name who) has made an “unsolicited proposal” (almost sounding like an indecent proposal) to buy Williams for $64 per share, or a total deal worth $48 billion. Williams has rebuffed the offering, hiring some high-powered bankers to help them out of this mess. The guy and company making the offer, it has since been revealed, is none other than Kelcy Warren, CEO of both Energy Transfer Partners and Energy Transfer Equity, the main shareholder of ETP. ETP is very active in the Marcellus/Utica. We have as much as we can gather on Warren, background on ETP/ETE, his indecent proposal to Williams, and what Williams–one of if not THE largest midstream companies in the northeast–is doing in response to Warren’s proposal…
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ETE Says Shareholders Big Winners in Potential Williams Merger
Energy Transfer Equity is offering their side of the story in the proposed merger/takeover of Williams. MDN’s lead story today is about that merger. On Sunday, Williams issued a pair of press releases refusing to name who the suitor is, but essentially said that somebody (ETE) is making an offer to buy them (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). As you know, there’s always two sides to a story. ETE, the main investor in Energy Transfer Partners, is offering their side of the story. ETE’s version is much more lengthy than Williams and includes the claim that the ETE proposal offers a 32.4% premium to Williams stockholders “with a high degree of transaction certainty”…
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PIOGA Asks Supreme Court to Stop DEP Denying Permits Using Act 13
Please see this MDN follow-up story for an important clarification/update:Â More on PIOGA Request to Keep DEP in its Regulatory Box
This story is why you pay MDN the “big bucks”–to break down complex issues into an easy-to-understand report. Last Friday the Pennsylvania Independent Oil & Gas Association (PIOGA) filed paperwork with the Pennsylvania Supreme Court asking for permission to, once again, intervene in the Act 13 lawsuit brought by seven selfish PA townships that resulted in portions of the Act 13 oil and gas drilling law to be struck down. Twice before PIOGA, which represents the companies directly affected by the Act 13 law, has filed to intervene and both times it was (incredibly) prevented from doing so. Apparently the people most affected by a lawsuit don’t have “standing” to defend themselves in PA courts–such is their system of “justice.” At any rate, PIOGA’s third attempt may succeed where the first two attempts failed, and that has the anti-drilling selfish towns, along with the Wolf administration, nervous. Why might PIOGA succeed this time? That’s where it gets complicated. In a nutshell, the zoning portions of the Act 13 law (Section 3304) were not the only sections to be struck down by the PA Supremes…
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Cunningham Strikes Oil in West Virginia’s Big Injun Territory
Back in 2013 we warned you that the injuns were coming–the Big Injun sandstone formation in West Virginia (see The Injuns are Coming! Injun Formation Drilling, that is). We told you then that Cunningham Energy of Charleston, WV was about to drill several shallow horizontal wells in the politically incorrectly named Big Injun Formation. We thought Cunningham was drilling for natural gas, but as it turns it, it was oil they were after. And, according to a press release, it’s oil that Cunningham has struck in the Big Injun…
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Magnum Hunter’s Bankers Say Get $65M in Cash by July 10, Or Else
Magnum Hunter Resources’ (MHR) creditors (the bankers) want to be sure the company has enough money on hand to a) pay them back, and b) stay out of bankruptcy. So the creditors gave MHR a deadline of last Friday, June 19th, to make sure they have $65 million cash on hand. MHR couldn’t do it–so the creditors gave them a new deadline–July 10th. The company says they’ve already raised $55.6 million–so they just need a measly $9.4 million to meet the requirement by the new deadline. Or else…
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Beaver County | Belmont County | Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell
Are OH Officials Worried about Shell’s PA Ethane Cracker? Nope
In April Ohio officials announced Belmont County, OH has been chosen as the site of a potential ethane cracker plant (see Itâs Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Which led us to admit that since we’ve been teased with a cracker for over three years now–with NO ONE actually committing to such a plant–we’re experiencing “cracker fatigue.” But not long after Shell made some serious moves toward committing to build a cracker plant in western Pennsylvania, not far from Pittsburgh. The most recent positive sign is that Shell finally, after three years of faffing about, earlier this month purchased the property the plant would be built on (see Shell Buys Beaver County, PA Property for Future Cracker Plant). Does a Shell cracker reduce the likelihood of an cracker plant being built less than two hours away in Belmont County, OH? Not according to officials in Ohio. In fact, they’re not worried at all…
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Eclipse Lowers IOU Offering Expectations – by $100M
Last week Eclipse Resources, a small but important driller primarily focused on the Ohio Utica Shale play, announced they are floating senior notes (IOUs) in an attempt to raise $650 million (see Eclipse Resources Floats $650M in New IOUs). Poof! There goes $100 million. On Friday Eclipse said they thought about it and they now want to raise $550 million with those notes, not $650 million as previously advertised…
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The Envrionmental Radicalization of the Anti-Drilling Movement
MDN is beginning to see a pattern. It dawned on us as we were recently listening to several news reports of why young people become “radicalized” and join forces with militant Islamists like those in ISIS (what we used to call Al-Qaeda). People who have become radicalized break laws. They often kill other people. They sometimes commit suicide by strapping bombs to themselves in an attempt to kill others. Sane people have a hard time understanding it. What drives these people to such extremes? What motivates them? Why do kids–some of them from America and other Western counties–become radicalized? Frankly, it usually (almost always) stems back to their childhood. Their heads have been crammed with liberal pap about hating America from a young age. People hate America because they hate freedom. As we were mulling this over, we had a revelation: It’s the same with some anti-drillers. In the same way some young people (and some older people) become radicalized and join ISIS, some are radicalized and join the “green” movement…
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Calendar of Events for Jun 22 â Sep 21 (90 Days)
Below are upcoming events for the next three months (90 days). To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.
NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
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Marcellus & Utica Shale Story Links: Mon, Jun 22, 2015
The âbest of the restâ â stories that caught MDNâs eye that you may be interested in reading:
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Talk of Upstate NY Seceding & Joining PA Comes Roaring Back to Life
This story comes right from MDN’s own backyard–in the Town of Windsor, NY. Following Gov. Andrew Cuomo’s decision to temporarily ban shale drilling while he’s in the governor’s chair, there was talk that some New York towns along the border of Pennsylvania are considering seceding from NY State and joining PA (see 15 NY Towns Consider Seceding from NY, Join PA Due to Frack Ban). It was certainly good for a few headlines–the story actually got international play for a while. But then it all seemed to simmer down. The “secession” story has now come roaring back to life with a proposal by a Windsor man (and MDN acquaintance) who is pushing a plan to split NY in two–and have all of upstate NY join Pennsylvania–not just a few towns. He’s even got a proposed platform and he’s working to organize a secession convention! Is this for real? Or is it a stunt–a clever way to focus attention on the abuse of upstate residents at the hands of a corrupt governor? You decide…
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Philly Area Dem State Senator Introduces Plan to Tax Pipelines
State Senator Andy Dinniman, Democrat from Chester (Delaware County), PA, has just introduced a new bill in the PA Senate that would require natural gas and natural gas liquids (NGL) pipelines to pay local and school property taxes in the Keystone State. His rationale is that pipelines should be required to help the communities that they affect (by traversing) in the same way the impact fee helps communities where drilling takes place. Good idea, or bad?…
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How the Wolf Administration is Cooking the Marcellus Jobs Numbers
Wow, did MDN peg it right or what? Yesterday we told you that Pennsylvania Gov. Tom Wolf’s administration/gang had politically, arbitrarily, rejiggered the Marcellus Shale industry employment numbers, dumping 151,000 jobs credited to the industry, in an attempt to smear the “brand” of the Marcellus as a jobs creator in the minds of Pennsylvanians (see Gov Wolf & Co Wipes Away 151K PA Jobs by Changing Formula). Our view was confirmed by a former Corbett administration official who exposes this numbers change-up for what it is: 100% political and 100% the work of the Wolf administration. Writing in the Harrisburg Patriot-News, Dennis Roddy calls out the Dept. of Labor and Industry for bowing to political pressure from the Wolf gang and arbitrarily changing the formula used to track direct, indirect and induced jobs from the Marcellus–a jobs formula accepted by economists across the country and a formula the Dept. of Labor and Industry themselves devised–not one devised by the Corbett administration…
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Blue Ridge Mtn Res/Magnum Hunter | EdgeMarc Energy | Energy Companies | Ohio | Washington County (OH)
More Utica Drilling on the Way in Washington County, OH?
We’re always on the lookout for signals–little things that we notice that may indicate where drilling will increase or decrease. We think we’ve found another one. EdgeMarc Energy is a small driller headquartered in the Pittsburgh area, formed in 2012. The company, according to their website, now has 50,000 acres leased in the Marcellus and Utica Shales. In checking our Marcellus and Utica Shale Databook series, we’ve not found a single permit issued to EdgeMarc, ever, but we have found a reference on MDN to a joint venture with Magnum Hunter Resources (see Magnum Hunter JV Deal with EdgeMarc to Drill 1,080 Acres in OH). EdgeMarc’s jv with MHR is interesting because the 1,080 acres targeted for jv drilling are in Washington County, Ohio, a county that has seen some, but not a lot, of Utica Shale drilling in the past (an average of 1 permit a month). Here’s the signal we’ve found that perhaps EdgeMarc, or jv partner Magnum Hunter, is about to ramp up more drilling in Washington County, Ohio…
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PA DEP Sec Quigley Creating His Own FracFocus; SRBC in Crosshairs
More antagonism for the oil and gas industry, and more radical environmentalist philosophy, from the new PennFuture Secretary of the Dept. of Environmental Protection in Pennsylvania, John Quigley. (Once again, you have these Republicans to “thank” for his appointment: List of Republican Senators Who Voted to Confirm Quigley @ DEP). Last night Quigley announced at a radical enviro dinner in Philadelphia, hosted by the Pennsylvania Environmental Council, that although under the Act 13 law all Marcellus drillers must file a list of the chemicals used at each well site with the national registry FracFocus.org, that’s not good enough for Quigley. The Act 13 law also requires drillers to file the info with the PA DEP, so Quigley has decided the DEP will create it’s own online database/website to show the information (wasting taxpayer’s money). It’s all about being more “transparent” according to Quigley. We’d say it’s all about being a control freak, but we digress. Quigley also reiterated his absolute faith in the man-made global warming fairy tale, and he has ominously set his sites on the SRBC in northeastern PA…
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Sunday evening MDN spotted what has to be THE biggest midstream story of 2015: Somebody wants to buy out and take over Williams Companies. The biggest midstream story of 2014 was the buyout of Access Midstream (the former Chesapeake Midstream) by Williams, creating a company that is nearly the size and certainly a worthy rival of the country’s biggest pipeline company Kinder Morgan (see 
Last week Eclipse Resources, a small but important driller primarily focused on the Ohio Utica Shale play, announced they are floating senior notes (IOUs) in an attempt to raise $650 million (see 
This story comes right from MDN’s own backyard–in the Town of Windsor, NY. Following Gov. Andrew Cuomo’s decision to temporarily ban shale drilling while he’s in the governor’s chair, there was talk that some New York towns along the border of Pennsylvania are considering seceding from NY State and joining PA (see 
More antagonism for the oil and gas industry, and more radical environmentalist philosophy, from the new PennFuture Secretary of the Dept. of Environmental Protection in Pennsylvania, John Quigley. (Once again, you have these Republicans to “thank” for his appointment: