Marcellus Drilling News

Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

One NY Town Plans to Frack Anyway, Looks for Way Around Cuomo Ban
February 27, 2015February 27, 2015

A common misconception for those who live in New York–especially dunderheaded anti-drillers–is that “Cuomo banned all fracking” in the Empire State. Sorry you dolts, fracking has been going on in this state for more than 40 years–and continues to this very day. The kind of fracking Cuomo banned is water-based, high volume horizontal fracking. New York’s drillers have and continue to drill vertical wells and frack them using less than 75,000 gallons of water. Presumably if a driller wants to drill a horizontal shale well and use something other than water, they can do that as well. At least, that’s the theory–and it’s that theory that the Town of Windsor (in Broome County, NY) is using to develop a plan to allow drillers to develop new shale wells in the town…
Read More “One NY Town Plans to Frack Anyway, Looks for Way Around Cuomo Ban”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA’s “Independent” Fiscal Office Says Drillers Pay Low Taxes
February 27, 2015February 27, 2015

It appears PA Gov. Tom Wolf’s severance tax proposal isn’t the slam dunk he thought it would be. Must be time to sneak in a supposedly “impartial study” that says raising taxes on drillers won’t hurt anybody–they ain’t goin’ nowhere ’cause that gas in under Pennsylvania soil. And right on cue the partisan so-called Pennsylvania Independent Fiscal Office (IFO)–populated with Democrats appointed by Ed Rendell and paid with taxpayer’s money–has issued a “research brief” which says the “effective tax rate” on PA drillers four years ago was 5.3%–but today it’s a measly 2.1% (robber barrons!). The new “brief” delights Gov. Wolf and the soak-the-drillers-we-hate-fossil-fuels-anyway Democrats in Harrisburg. This is not the first so-called research issued by the IFO calling for high taxes on drillers. They said the same thing last year–only last year’s report was longer (see PA Partisan Study Finds PA Needs to Soak Drillers with New Taxes). Here’s the latest pathetic attempt to build a case for stealing the money from one industry (oil & gas) to give it away to another (big education)…
Read More “PA’s “Independent” Fiscal Office Says Drillers Pay Low Taxes”
CONE Midstream | Energy Services

CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early
February 27, 2015May 13, 2015

NOTE: The original version of this article incorrectly stated CONE had hit 1 billion cubic feet per day of throughput. MDN regrets the mathematical error!

In August 2014, CONSOL Energy and Noble Energy formed a midstream joint venture called CONE Midstream to primarily serve to connect their Marcellus and Utica wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). In October, CONE floated an initial public offering (IPO) to sell units (units are like stocks for master limited partnerships) in the new jv, raising $423 million (see CONE Midstream’s IPO Takes in $423M, Market Cap Already $1.71B!). The fledgling jv is growing up fast. The company has already passed the 500 million cubic feet per day (Mmcf/d) of throughput on its pipeline system–six months ahead of schedule. In 2014 the company had $15.3 million of revenue…
Read More “CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early”
Energy Companies | Halcon Resources | Ohio | Statewide OH | Utica Shale

Halcon CEO Floyd Wilson: “What’s the Utica?”
February 27, 2015February 27, 2015

In January, MDN told you the news that Halcon Resources, with with some 140,000 net acres in the Ohio Utica Shale, would not do any Utica drilling in 2015 (see Halcon Resources: Slashes Drilling Budget 50%, No Utica for 2015). Yesterday Halcon held an analyst/investor conference call to discuss the company’s 2014 results and 2015 projections. On the call was Floyd Wilson–the very straight-talking CEO of Halcon who once said he would drill no more, well, er, “substandard” wells in the Utica (see Halcon CEO Says No More S***** Wells in Northern OH Utica). The Utica came up precisely once on yesterday’s phone call. Here’s what the colorful Wilson said during a Q&A…
Read More “Halcon CEO Floyd Wilson: “What’s the Utica?””
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland Dems Introduce Liability Bill in Attempt to Ban Fracking
February 27, 2015February 27, 2015

Maryland’s anti-drillers aren’t going down without a fight. On his way out of office, Maryland Democrat Martin O’Malley set the wheels in motion to allow fracking in the state (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). Almost immediately a Maryland Democrat in the House of Delegates, from a Washington, DC suburb, introduced a moratorium bill (see Maryland Delegate Introduces Moratorium, Before Fracking Begins). That bill isn’t getting any traction, so the Dems have returned to a favorite tactic used by totalitarian governments around the world: you’re guilty until you prove you’re innocent. It’s the exact opposite of the jurisprudence philosophy that underpins the greatest country on earth–ours. In the USA, you’re innocent until proven guilty. But a new bill just introduced in the Maryland legislature, actually supported by Maryland’s Democrat attorney general, would flip that around and presume drillers are at fault if there’s the least little change in water quality, air quality, etc. Under this bill, you’re guilty and YOU WILL PAY until you prove otherwise. In other words, this bill is a ban on drilling flying under a different name…
Read More “Maryland Dems Introduce Liability Bill in Attempt to Ban Fracking”
Energy Services | MarkWest Energy

MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?
February 27, 2015February 27, 2015

Somebody help us out here. We noticed one day after MarkWest Energy released their 2014 numbers and commentary (see MarkWest Energy Continues to Soar in 2014, New Record for Northeast and MarkWest Energy Investor Phone Call Excerpts + PowerPoint), the company issued two press releases saying they are shopping senior unsecured notes (essentially IOUs) looking to raise money to pay off other money they borrowed in the past. Yes, they’re borrowing money to pay off borrowed money. One of the press releases says they want $650 million, and the other says $500 million. Are these two different tranches of money they’re after ($1.15 billion total)? Or did they issue one press release to supersede the other? And if so, which amount do they really want? Help!…
Read More “MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Feb 27, 2015
February 27, 2015February 27, 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: Fri, Feb 27, 2015”
Chesapeake Energy | Energy Companies

Chesapeake Energy Earnings Down 60%; Cutting Budget 34% in 2015
February 26, 2015February 26, 2015

Corporate raiders Mason Hawkins and Carl Ichan, Chesapeake Energy’s two largest investors, are not happy men today. Chesapeake released its full year and fourth quarter 2014 update yesterday and earnings were down–60% from 2013. Depressed earnings can largely be blamed on the low price of natural gas and oil, but also on Chesapeake’s lower estimated production for 2015. The news resulted in a stampede of investors selling Chessy’s stock–which took a massive 11% hit yesterday. Among the many bits of news coming from Chesapeake yesterday is that the company will slash its 2015 capital budget 34% over what it spent in 2014. There will be less drilling in both the Marcellus and Utica Shale, and Chesapeake is actually (if you believe them this time) shutting in wells in the Marcellus/Utica and curtailing some of their production, waiting for the price to increase. They’ve made that threat in the past and never followed through (see Chesapeake’s NatGas Production Cuts Never Materialized). The boy who cried wolf comes to mind. Below is the 2014 report from Chesapeake…
Read More “Chesapeake Energy Earnings Down 60%; Cutting Budget 34% in 2015”
Chesapeake Energy | Energy Companies

Chesapeake Energy Investor Phone Call Excerpts + PowerPoint
February 26, 2015February 26, 2015

Yesterday’s news that Chesapeake Energy is scaling back both production and new drilling in the Marcellus/Utica largely came from an analyst call in which Chesapeake management provided answers to questions by analysts. Below we have select portions of the transcript from that phone call, along with a copy of Chesapeake’s latest company presentation (slide deck). Chesapeake’s management talks about curtailment (shutting in and slowing down production) in the Marcellus, and scaling back new drilling in the Utica…
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Centre County | Clearfield County | Energy Companies | Pennsylvania | Rex Energy | Westmoreland County

Rex Energy Looks to Sell 28,300 Marcellus Acres in Bid to Raise $
February 26, 2015February 26, 2015

Last week Rex Energy released its 2014 year in review and projected some numbers for 2015 (see Rex Energy 2014: Revenues Up 39%, Production Up 66%, 50 New Wells). A day later the company hosted an analyst/investor conference call. In reviewing that call, there was some news of interest. Rex said it is considering selling 28,300 non-operated acres in Westmoreland, Clearfield and Centre counties (PA) as a way of raising more money. Officials also said they’re looking for a buyer for their 60% stake in Keystone Clearwater Solutions, an oilfield services company, and a joint venture partner with Rex in its Moraine East acreage. Huh. Below are excerpts from last week’s Rex conference call along with their latest PowerPoint presentation…
Read More “Rex Energy Looks to Sell 28,300 Marcellus Acres in Bid to Raise $”
Energy Companies | Gulfport Energy | Utica Shale

Gulfport Production Up 255%, Spending 96% of $ on Utica in 2015
February 26, 2015February 26, 2015

Gulfport Energy CEO Michael Moore said 2014 was “a transformation year” for the company. Indeed it was. Yesterday Gulfport issued their 2014 year in review and predictions for 2015. Gulfport drills in the Utica and in other shale plays. Combined production for the company in 2014 zoomed up 255% over 2013–most of it from the Utica. Gulfport drilled 85 Utica Shale wells in 2014, and they hooked up/put into production 63 Utica wells in 2014. In 2015 the company plans to spend between $545-$595 million on drilling–96% of that will be spent in the Utica Shale. Below is yesterday’s 2014/2015 update…
Read More “Gulfport Production Up 255%, Spending 96% of $ on Utica in 2015”
Antero Resources | Energy Companies

Antero Resources: 2014 a Banner Year, but Cutting 2015 Budget 36%
February 26, 2015February 26, 2015

Yes, it’s earning season and for the next several weeks there will be a parade of companies releasing their 2014 results and looking forward to 2015. Antero Resources, one of the largest drillers in the Marcellus/Utica, is among them. Yesterday Antero released their 2014 numbers and commented on 2015. Among Anteor’s good news: Proved reserves jumped an eye-popping 66% in just one year–to 12.7 trillion cubic feet equivalent (Tcfe). The company’s 3P reserves (proved, probably and possible) jumped to a staggering 40.7 Tcfe. If you look at potential drilling locations for Antero’s 3P leased acreage, they could theoretically drill in 5,331 different locations (70% of those locations being in liquids-rich areas). Daily average production was up a huge 87% year over year. Net revenue doubled for the year. On the down side, Antero is cutting their 2015 budget by 36%, but that’s not a surprise. Below is yesterday’s update…
Read More “Antero Resources: 2014 a Banner Year, but Cutting 2015 Budget 36%”
Energy Services | MarkWest Energy

MarkWest Energy Continues to Soar in 2014, New Record for Northeast
February 26, 2015February 26, 2015

MarkWest Energy, one of (perhaps the) largest midstream (pipelines & processing plants) companies in both the Marcellus and Utica Shale region, issued its 2014 year in review yesterday. Among the highlights: the company reported record processed gas volumes of over 3.2 billion cubic feet per day from the Marcellus and Utica during the fourth quarter, an increase of over 100% from 4Q13; they processed/fractionated over 200,000 barrels per day of NGLs in the Marcellus/Utica during 4Q14, an increase of over 100% from 4Q13; MarkWest placed into service 720 million cubic feet per day of new processing capacity, with the addition of Sherwood V and Mobley IV in the Marcellus Shale; Cadiz II in the Utica Shale; and Carthage IV in East Texas; and they began operations of a third 60,000 barrels per day propane (and heavier) fractionation facility in Marcellus/Utica. It’s hard to find any bad news for MarkWest! Here’s the update…
Read More “MarkWest Energy Continues to Soar in 2014, New Record for Northeast”
Energy Services | MarkWest Energy

MarkWest Energy Investor Phone Call Excerpts + PowerPoint
February 26, 2015February 26, 2015

In addition to releasing their 2014 update yesterday, MarkWest Energy held an analyst/investor phone call to discuss last year and talk about what’s coming up in 2015. The main portion of that call was a prepared presentation by MarkWest CEO Frank Semple. We’ve selected out the relevant portion of his statement (most of it, actually) which deals with the Marcellus/Utica. Frank gives a useful update on many of the bubbling projects they’ve been working on. Following Frank’s comments is the latest PowerPoint presentation (with a list of our favorite slides)…
Read More “MarkWest Energy Investor Phone Call Excerpts + PowerPoint”
Belmont County | Economic Impact | Energy Services | Energy Transfer Partners | Harrison County | Industrywide Issues | Jefferson County (OH) | Jobs | Monroe County | Ohio | Pipelines

List of Towns in 4 SE OH Counties Getting ET Rover Pipeline
February 26, 2015February 26, 2015

Southeast OH will soon see a lot of new pipelines being laid, and along with it, a lot of new jobs. Energy Transfer Partners recently briefed Monroe County Commissioners on the ET Rover pipeline project, an 800-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). If the pipeline is laid as currently planned in the southeastern portion of Ohio, the pipeline will traverse 46.31 miles in Monroe County, 34.99 miles in Belmont County, 20.06 miles in Jefferson County and 17.7 miles in Harrison County. Here’s a list of the lucky townships in those four counties where the pipeline is due to go…
Read More “List of Towns in 4 SE OH Counties Getting ET Rover Pipeline”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

Antis Show Up at NJ FERC Hearing to Dis PennEast Pipeline
February 26, 2015February 26, 2015

Hundreds of people turned out for the first-ever Federal Energy Regulatory Commission (FERC) hearing in New Jersey for the PennEast pipeline. You knew the nutters were lined up and ready–just about to burst waiting to get in front of the cameras and microphones to tell their silly tales of not why the pipeline should not be rerouted here or there to avoid something important–but why it should never, ever on God’s green earth NEVER get built. Some 90 people signed up to spew, and of course they didn’t disappoint. There was talk of George Washington and the Hessians (look up your American history if you don’t know what Hessians were); THE Delaware Riverkeeper herself, Maya van Rossum, made a star-studded appearance; and there were calls from some to “stand your ground” and never, ever on God’s green earth NEVER allow this evil, disgusting pipeline to get built…
Read More “Antis Show Up at NJ FERC Hearing to Dis PennEast Pipeline”