Southwestern Sells Pipeline Gathering System in NEPA for $500M
Yesterday Southwestern Energy announced they’ve struck a deal to sell their local gathering pipeline network in Bradford and Lycoming counties in northeastern Pennsylvania for $500 million to the Texas-based Howard Midstream Energy Partners. From what we can tell, this is Howard’s first foray into the Marcellus–so welcome! The pipeline network includes approximately 100 miles of natgas gathering lines with ~600 million cubic feet per day of capacity. Southwestern plans to use the half bil to pay down a loan coming due in December 2016. Howard Energy says, in their version of the announcement, that they also have a handshake deal with Southwestern to construct and operate a new gathering system for Southwestern in Tioga County, PA…
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There’s once again renewed interest in Ohio’s Clinton sandstone. This time the interest is in drilling horizontal wells–“baby” wells compared to a Utica well. Over a dozen horizontal wells either have been or are now being drilled in the Clinton. One company, traditionally a conventional (vertical-only) driller, says drilling a horizontal well in the Clinton is 3 times more expensive than a vertical-only well, but it’s 7-8 times more productive. Another driller puts the cost at 10 times more than conventional drilling but 20 times more productive. Any way you slice it, it seems that small and large firms alike are taking a close look at the Clinton, drilling for “leftover natural gas and oil.” Here’s details of who’s doing the drilling and where…
Investment firm Topeka Capital Markets recently issued a report (for their clients) of the “most likely” companies in the oil and gas space that will be takeover targets, presumably this year. Unfortunately we don’t have a copy of the report, but we do have a list of the names they say are likely targets. The list has seven companies on it–three of which are focused on the Marcellus/Utica. Two of them are some of the biggest in the Marcellus/Utica. One of them has our eyes popping out, frankly with disbelief…