Marcellus Drilling News

Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA | UGI Energy Services

Spectra Energy Becomes 6th Partner in PennEast Pipeline Project
October 30, 2014October 30, 2014

The more the merrier. The quintet of companies who are partnering to build the 100-mile PennEast Pipeline from northeastern PA to Trenton, NJ has turned into a sextet. Large regional utility company UGI has been/continues to be the lead company building the pipeline (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The other original investors were AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries. In September, the four original partners were joined by PSEG Power, New Jersey’s largest utility (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). Now it’s partner number six: Spectra Energy…
Read More “Spectra Energy Becomes 6th Partner in PennEast Pipeline Project”
Energy Companies | Range Resources Corp

Range Resources 3Q14: Production Hits 1.2 Bcf/d, Big Credit Line
October 30, 2014October 30, 2014

Range Resources released their third quarter 2014 operational and financial update yesterday. The report shows the company is now producing 1.2 billion cubic feet per day, on average, of natural gas equivalents–up 26% from the same time last year. The company says they continue to realize “outstanding” well results in the Marcellus Shale, which is their main focus. Range also has a new bank line of credit agreement in place that allows them to borrow up to a massive $4 billion…
Read More “Range Resources 3Q14: Production Hits 1.2 Bcf/d, Big Credit Line”
Energy Companies | Hess | Ohio | Statewide OH | Utica Shale

Hess 3Q14: Says Almost Nothing About Utica Operations
October 30, 2014October 30, 2014

Not long ago Hess sold off its retail (gas stations) and transportation operations, completing its transformation into an E&P-only company (see Marathon Petroleum Buys the Hess Truck! What Will We Do for Xmas?). One of the operational areas for Hess is the Utica Shale in Ohio. In May of this year, the company said it was in the process of drilling 35 Utica wells this year (see Hess Likes Early OH Utica Results, Drilling 35 Utica Wells in ’14). However, when we look at the latest quarterly update from the company, published yesterday, we find the following very brief references to the Utica…
Read More “Hess 3Q14: Says Almost Nothing About Utica Operations”
Industrywide Issues | Sand/Proppant | Supply Chain

SandBox Logistics Begins Work in Marcellus/Utica
October 30, 2014October 30, 2014

SandBox Logistics (clever name) provides trans-loading, storage, and “last mile delivery” of frac sand used in hydraulic fracturing. Sandbox’s delivery process is patented. According to the company, their delivery process and the containerization process they use increases operational efficiency by eliminating many of the logistics problems and transportation bottlenecks that can happen. The SandBox system also substantially reduces silica dust and noise pollution. Why go on about SandBox? Because drilling services company U.S. Well Services has just signed a contract with SandBox to use them in their Marcellus/Utica operations. It marks the first time SandBox has done business in our neck of the woods…
Read More “SandBox Logistics Begins Work in Marcellus/Utica”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 30, 2014
October 30, 2014October 30, 2014

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: Thu, Oct 30, 2014”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!
October 29, 2014October 29, 2014

Last week Cabot Oil & Gas issued its third quarter update. The official announcement was long on the financials and very short on details for their ongoing Marcellus Shale program in Susquehanna County, PA. We’ve lifted the relevant (short) section below. However, the company also held the ubiquitous analyst phone call and in that phone call (transcript below), we get a lot more detail about Cabot’s Marcellus program. One gem: the company is now producing 1.8 to 2.0 billion cubic feet per day of natural gas in the Marcellus. Cabot will be the first company to be officially inducted into the record-breaking 2 Bcf/d Club! Although the company plans to drill 180-190 new wells in 2015, only about half of those wells will be in the Marcellus. Alas, another shale play is now turning the head of Cabot…
Read More “Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!”
Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Susquehanna County

Southwestern 3Q14: 2 Wells Near NY Border are “Promising”
October 29, 2014October 29, 2014

Southwestern Energy released their third quarter financial and operational update late last week. Picking through the release we find that their Marcellus gas production is up 47% from a year ago this time. At the end of September, the company had 234 operating Marcellus wells in production, and another 102 wells in various stages of being drilled. The vast majority of Southwestern’s wells are in Susquehanna and Bradford counties (PA), with a fair number also in Lycoming County, PA. Southwestern says they continue to test “the Upper Marcellus” and have drilled three such wells to date. Perhaps the biggest news (for New Yorkers) is this statement: “Two wells have also been drilled near the New York border in Susquehanna County. Early results are positive and work has begun to build a gathering system for future development in this area.” You can’t tell us there isn’t a boatload of gas sitting right across the border in the Empire State–if only the man-child Andrew Cuomo would make up his mind to allow drilling…
Read More “Southwestern 3Q14: 2 Wells Near NY Border are “Promising””
CONSOL Energy | Energy Companies

CONSOL Energy 3Q14: Splitting the Company in Two, 1 Bcf/d Club
October 29, 2014October 29, 2014

CONSOL Energy continues its transformation from coal company to oil and gas company. In fact, it’s nearly complete. On a conference call yesterday discussing the company’s stellar performance in the Marcellus and Utica Shale, CONSOL officials hinted that they will soon split the company, putting the coal operation into its own master limited partnership (MLP). Meanwhile, also on the same call, CONSOL CEO Nick Deluliis said any day now the company’s production volume will blow on by the 1 billion cubic feet per day mark. Welcome to the 1 Bcf/d club!…
Read More “CONSOL Energy 3Q14: Splitting the Company in Two, 1 Bcf/d Club”
Energy Companies | Noble Energy

Noble Energy 3Q14: Production Up 95%, Drilled 23 New Wells
October 29, 2014October 29, 2014

Noble Energy released their third quarter numbers and operational update yesterday. The company operates in several U.S. shale basins as well as the Gulf of Mexico and several foreign locations. Of note is their ongoing program in the Marcellus Shale. Production for Noble from the Marcellus is up 31% from 2Q14 and up a big 95% year over year in 3Q14. They drilled 23 Marcellus wells during 3Q14 and brought 23 wells online during the quarter as well. Here’s the low down on Noble’s Marcellus program over the last three months:
Read More “Noble Energy 3Q14: Production Up 95%, Drilled 23 New Wells”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

MDN is Outraged at Massachusetts Anti-Pipeline Outrage
October 29, 2014October 29, 2014

We’re outraged at the outrage of hypocritical anti-drillers. An article from Massachusetts begins this way: “Gas pipeline opponents throughout the state of Massachusetts are outraged about a new pipeline support coalition that has formed because the group not only has ties to the company trying to put the pipeline in place, but is also putting big businesses before residential concerns.” That set us off! Here’s what we’re outraged about…
Read More “MDN is Outraged at Massachusetts Anti-Pipeline Outrage”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 29, 2014
October 29, 2014October 29, 2014

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, Oct 29, 2014”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UIL Holdings

Philly City Council Kills the Phila. Gas Works $1.86B Deal
October 28, 2014October 28, 2014

There’s a reason Philadelphia has the reputation of being one of the most corrupt cities in America–because it is. We have proof. Back in March of this year, after a long, hard process, the Democrat Mayor of Philly, Michael Nutter, announced a deal to sell the municipally-owned (and bleeding money) Philadelphia Gas Works to UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility holding company (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The deal would have injected $424 million into the city’s failing pension fund. It was a win/win all the way around. What did the corrupt City Council do? Diddle around, giving special interests time to mount opposition (see Philly City Council Continues to Diddle Around on PGW Sale). Yesterday the corrupt City Council announced they were killing the deal Nutter, one of their own, worked so hard to negotiate…
Read More “Philly City Council Kills the Phila. Gas Works $1.86B Deal”
Accidents | Eclipse Resources | Energy Companies | Guernsey County | Industrywide Issues | Ohio

Explosion at Eclipse Resources Site in Guernsey Cnty – 1 Injured
October 28, 2014October 28, 2014

There was an explosion at an Eclipse Resources drilling site in Guernsey County, OH late last Friday night. One worker was reportedly hurt and taken by helicopter to the burn unit at the Akron Children’s Hospital. There are virtually no news accounts (so far) about the accident, and Eclipse has not yet posted anything on their website about the accident. Here’s the very brief (and only) account we can find, thus far:
Read More “Explosion at Eclipse Resources Site in Guernsey Cnty – 1 Injured”
Brooke County | Hancock County | Marshall County | Ohio County | Tyler County | West Virginia | Wetzel County

The Marcellus/Utica Production Rocket Ship in WV
October 28, 2014October 28, 2014

Prior to 2012, Brooke County, WV produced zero natural gas. Nada. Zippo. Nothing. In 2012 the county produced 1.4 million cubic feet (Mmcf) of natural gas. Barely a blip. In 2013, Brooke County produced 8 BILLION cubic feet of natural gas. The trajectory for the county, and other counties in the northern panhandle of WV is startling–thanks to the Marcellus and now the Utica Shale. Brooke is not the only eye-popping example in WV…
Read More “The Marcellus/Utica Production Rocket Ship in WV”
Antero Resources | Energy Companies | Industrywide Issues | Pipelines | Processing Plants

Antero Resources Launches Midstream IPO, Seeks $1B+
October 28, 2014October 28, 2014

Can Antero Resources do it again? A little over a year ago, in October 2013, Antero, one of the biggest players in the Marcellus/Utica Shale, floated an initial public offering (IPO) for the company, called “taking it public” because shares of stock will be owned and traded on a public stock exchange–and raised an incredible $1.57 billion (see Antero’s IPO Fetches $1.57B, Company Valued at $11B!). Antero is hoping lightening will strike twice, and indeed it may. Yesterday the company announced that it will spin off its midstream division into a new wholly-owned subsidiary, under a master limited partnership (MLP) structure, and offer “units” (think shares of stock) that will be publicly traded. The company plans to offer more than 43 million units to investors and if it gets the target $19-$21 per unit, the grand total will once again exceed $1 billion of new investment…
Read More “Antero Resources Launches Midstream IPO, Seeks $1B+”
CNG/LNG | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Regional LNG Plant, Filling Stations Coming to Pittsburgh Region
October 28, 2014October 28, 2014

A man with a long history of projects and companies dealing in LNG (liquefied natural gas) and CNG (compressed natural gas), Robert E. Petsinger, has announced he’s putting together financing for a $440 million company that will (a) build a regional LNG production plant along the banks of the Ohio River somewhere near Pittsburgh, and (b) build 50 LNG and LNG-derived compressed natural gas stations within a 500-mile radius of Pittsburgh. The reason for the location? To use cheap, abundant, locally mined Marcellus Shale gas. Given Petsinger’s history, this is no blue flame pipe dream. You can take it to the bank…
Read More “Regional LNG Plant, Filling Stations Coming to Pittsburgh Region”