Marcellus Drilling News

Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

More Problems for Range Resources with SWPA Impoundments
August 7, 2014August 7, 2014

Range Resources has had ongoing problems with the neighbors and townships where they’ve built and maintained several frack wastewater impoundments (large ponds) in Washington County, PA for the past several years. MDN has chronicled the push back, threats, lawsuits and shenanigans (see our list of Range impoundment stories here). The saga continues. Late last week residents living near the Cecil 23 impoundment–formerly known as the Worstell impoundment, located in Cecil Township–were informed by the town that the state Dept. of Environmental Protection (DEP) would be testing the ground (and water supplies?) following an alert from Range that the impoundment may have leaked in the past. Then, on Tuesday of this week, Range received a Notice of Violation from the DEP for leaks found at the Yeager impoundment in Amwell Township…
Read More “More Problems for Range Resources with SWPA Impoundments”
Energy Companies | WPX Energy

WPX Energy 2Q14: No Mention of Marcellus; Focused on Oil
August 7, 2014August 7, 2014

WPX Energy, the former drilling arm of Williams spun off into its own company back in January 2012, issued their second quarter 2014 update on Tuesday. The company has lately focused their efforts on oil and it shows. They report a 57% increase in oil production and “stronger than expected natural gas production” than for the same period a year ago. That news sent WPX’s stock price soaring–the biggest increase the stock has seen since it debuted in 2012. Although WPX has invested $1 billion to drill 100 or so Marcellus Shale wells (all of them in Pennsylvania), the one word you don’t find anywhere in WPX’s 2Q14 update is, “Marcellus”…
Read More “WPX Energy 2Q14: No Mention of Marcellus; Focused on Oil”
Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

Final Chapter for Youngstown Illegal Wastewater Dumper: Prison & Fine
August 7, 2014August 7, 2014

The long, sad and maddening saga of Ben Lupo is now just about complete. Lupo, previous owner of D&L Energy and its associated company Hardrock Excavating, directed employees to dump frack wastwater hauled by Hardrock into a drain that emptied into a stream that emptied into the Mahoning River near Youngstown, OH (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). It was later discovered that from September 2012 to end of January 2013, Lupo was responsible for dumping at least 30 loads of frack wastewater literally down the drain and into the river. It was a breathtaking environmental crime, of that there is no doubt. After a long investigation and criminal charges, Lupo finally plead guilty and earlier this week he was sentenced–to 23 months in prison and a $25,000 fine (although it cost over $3 million to clean it all up)…
Read More “Final Chapter for Youngstown Illegal Wastewater Dumper: Prison & Fine”
Chesapeake Energy | Energy Companies

Chesapeake Energy 2Q14: Profits Down, Gas & Oil Production Up
August 7, 2014August 7, 2014

Chesapeake Energy issued their second quarter 2014 update yesterday–and there’s a lot in there. Chessy has been slashing and burning, selling assets all over the place, scaling back in certain areas, expanding in (precious few) others–all in the quest of “fiscal discipline” as is mentioned over and over in yesterday’s announcement. It may sound bad, but is being spun as good, that Chesapeake’s 2Q14 profits dropped 68% from a year ago at the same time. Meanwhile, net income for 2Q14 was $191 million, down from $457 million a year ago…
Read More “Chesapeake Energy 2Q14: Profits Down, Gas & Oil Production Up”
Crestwood Midstream | Energy Services | Inergy

Crestwood Midstream 2Q14: Marcellus Volumes up 10%, Revenue Up
August 7, 2014August 7, 2014

Crestwood Midstream, which merged with (took over) Inergy Midstream last year, issued its second quarter 2014 financial and operational update yesterday. Crestwood/Inergy has a meaningful and growing presence in both the dry gas northeastern PA Marcellus and wet gas southwestern PA Marcellus region. Overall Crestwood reports Marcellus shale volumes flowing through their pipelines increased 10% in 2Q14 over 2Q13, resulting in higher revenues and smiling faces. Here’s a few select portions of yesterday’s update that touch on the Marcellus…
Read More “Crestwood Midstream 2Q14: Marcellus Volumes up 10%, Revenue Up”
Columbiana County | Education | Industrywide Issues | Ohio | Utica Shale

Utica Shale Academy Gets Enough Students to Open, Help from TX Co
August 7, 2014August 7, 2014

Good news for the Utica Shale Academy. The Academy is slated to open its doors on August 19–just two weeks away. At last check (in June) they only had 10 students signed up (see Utica Shale Academy Having Tough Time Finding Students). They need 25 to begin operating. As of last Friday they’re up to 24–so looks like it’s a go. Further good news: The Houston, TX-based company Express Energy Services, an oilfield services company with operations in the Utica Shale, is supporting the school and will be one of the businesses featured in a special lecture series for students…
Read More “Utica Shale Academy Gets Enough Students to Open, Help from TX Co”
Industrywide Issues | Pennsylvania | Research | Statewide PA | Statewide WV | West Virginia

EIA: Marcellus Continues to Break Records – Passes 15 Bcf/d Level
August 6, 2014August 6, 2014

The U.S. Energy Information Administration (EIA) ran an article in their Today in Energy online publication yesterday stating the Marcellus Shale region produced, for the first time ever, more than 15 billion cubic feet of natural gas per day (Bcf/d) in July. The Marcellus, located in Pennsylvania and West Virginia, now accounts for a staggering 40% all U.S. shale gas production. Compare that to just four short years ago, in 2010, when the Marcellus produced 2 Bcf/d. The Marcellus is, without a doubt, the most productive shale play for natural gas in the world…
Read More “EIA: Marcellus Continues to Break Records – Passes 15 Bcf/d Level”
Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy Launches Open Season on 4 Marcellus/Utica Pipelines
August 6, 2014August 6, 2014

MDN friend Tom Knox from Columbus Business First has done some expert sleuthing and found that Spectra Energy has recently launched open seasons for four new or expanded natural gas pipelines that crisscross the Utica and Marcellus region. All four open seasons end later this month. If Spectra gets signed contracts and if all four pipeline projects are approved by the Federal Energy Regulatory Commission, the four projects together represent an additional 3.5 billion cubic feet per day of additional takeaway capacity in the Marcellus/Utica. Here’s a run down of the four projects, taken from Spectra’s website:
Read More “Spectra Energy Launches Open Season on 4 Marcellus/Utica Pipelines”
American Energy Partners | East Resources | Energy Companies

Aubrey McClendon’s Money Makes Purchase of Buffalo Bills Possible
August 6, 2014August 6, 2014

Two months ago MDN brought you the announcement that Aubrey McClendon’s American Energy Partners had cut a deal with East Resources to purchase 27,000 Utica Shale acres and 48,000 Marcellus Shale acres for $1.75 billion (see McClendon Buys 48K WV Marcellus Acres, 27K More OH Utica Acres). East was founded in 1983 by Terry Pegula. He sold most of East’s acreage and assets to Shell in 2010 for $4.7 billion. Pegula purchased the Buffalo Sabres NHL hockey team and with the potential sale to McClendon, would be the front runner to purchase the Buffalo Bills team, now for sale after the death of its previous owner Ralph Wilson. We believe MDN was the first to declare Aubrey was enabling the purchase the purchase of the Bills (see Fascinating Connection Between NFL & Marcellus/Utica). Yesterday Aubrey announced he was true to his word and the deal is now done and dusted–in the books. Pegula and Donald Trump have both been given permission to go to the next round in their bids to buy the Bills…
Read More “Aubrey McClendon’s Money Makes Purchase of Buffalo Bills Possible”
Hydraulic Fracturing | Industrywide Issues | Public Opinion | Research

Makovsky Survey: 57% in U.S. Think Fracking a Top 3 Enviro Issue
August 6, 2014August 6, 2014

Makovsky, a public relations firm with offices in New York City and Washington, DC, on Monday released the results of a new survey they conducted nationwide on public attitudes about the issue of fracking (full copy of the survey results embedded below). We’ll analyze the survey itself and how it was conducted in a moment. However, the bombshell finding of the survey is that 57% of U.S. consumers believe that the issue of fracking is “one of the three most important environmental issues of today.” Another bombshell: in the U.S., “71% of people say they hear about fracking every week.” Some 41% hear about fracking through Internet news (MDN anyone?). And 38% hear about fracking via social media like Twitter and Facebook…
Read More “Makovsky Survey: 57% in U.S. Think Fracking a Top 3 Enviro Issue”
Carrizo Oil & Gas | Energy Companies

Carrizo 2Q14: Drills 9 Marcellus Wells, Buys More Utica Acreage
August 6, 2014August 6, 2014

Carrizo Oil & Gas is a big energy company, but has relatively small operations in both the Utica and Marcellus Shales. Lately they’ve been focusing their efforts on “oily” shale plays, like the Eagle Ford in Texas (they spent 78% of their drilling budget on the Eagle Ford last quarter). However, Carrizo does maintain a steady program in both the Marcellus and Utica. Yesterday Carrizo released their second quarter 2014 financial and operational update. Below we’ve pulled out those areas that touch on their operations in the northeast…
Read More “Carrizo 2Q14: Drills 9 Marcellus Wells, Buys More Utica Acreage”
Cameron County | Clarion County | Clearfield County | Elk County | Endeavour International | Energy Companies | Jefferson County (PA) | Pennsylvania | SM Energy

Endeavour 2Q14: Completes 3rd PA Marcellus Well of the Year
August 6, 2014August 6, 2014

Endeavour International, a driller with operations in both the North Sea (off-shore) and the U.S. (on-shore) issued their second quarter 2014 update yesterday. Does the Endeavour name sound familiar? Three years ago MDN told you about Endeavour’s deal to buy 50,000 Marcellus Shale acres, a pipeline and three working Marcellus wells, all located in McKean and Potter counties in Pennsylvania (see Endeavour International Buys Lease for Additional 50K Marcellus Acres & Local Pipeline in PA from SM Energy). Five months later Endeavour backed out of the deal and 2 1/2 years of litigation ensued, finally settling in April of this year (see Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties). Endeavour still owns 27,200 gross Marcellus acres in Elk, Cameron, Clarion, Jefferson and Clearfield counties, and in 2Q14 they successfully completed their third frack job…
Read More “Endeavour 2Q14: Completes 3rd PA Marcellus Well of the Year”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Aug 6, 2014
August 6, 2014August 6, 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, Aug 6, 2014”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources

GreenHunter Resources 2Q14: Still Waiting to Launch
August 5, 2014August 5, 2014

GreenHunter Resources (i.e. GreenHunter Water) issued their second quarter 2014 update yesterday. We have the update below so you can read through it. Our quick take: GreenHunter is still “waiting to launch.” They are an important player in the freshwater/wastewater management arena for the Marcellus and Utica region. But the company is small (total revenue for the first six months of 2014 was just north of $15 million). According to GreenHunter’s COO, the projects they’re working on for the rest of this year and in 2015 will take the business “to an entirely new level.” If the Coast Guard allows them to launch barge shipments, we think he’s right. Revenue for the first six months of 2014 is up a very health 45%, and the bleeding (losses) have slowed from $0.30 per share for the first six months in 2013 to $0.14 per share for the first six months of 2014…
Read More “GreenHunter Resources 2Q14: Still Waiting to Launch”
Chesapeake Energy | Energy Companies | Energy Services | Seventy Seven Energy

Seventy Seven Energy’s 1st Quarterly Update: Revenue Down 6%
August 5, 2014August 5, 2014

It was a loooong labor and delivery, but finally Seventy Seven Energy was born a little over a month ago (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). Who or what is Seventy Seven Energy? It’s the old Chesapeake Oilfield Operating (COO) division of Chesapeake Energy–the services arm that competes with companies like Halliburton and Baker Hughes. Chessy’s current CEO Doug Lawler, who seems to report to corporate raider Carl Icahn, spun out COO into its own company to improve Chessy’s balance sheet and make Carl’s stock holdings worth more. Such is life in corporate raider America. Anywho, the new Seventy Seven Energy (or SSE as they call themselves), a company with operations in both the Marcellus and Utica, issued their first quarterly operational and financial update yesterday–an update that will be watched closely…
Read More “Seventy Seven Energy’s 1st Quarterly Update: Revenue Down 6%”
Industrywide Issues | M&A

Downstream Calumet Buys Upstream Specialty Oilfield Services
August 5, 2014August 5, 2014

The bigger fish keep on gobbling up the smaller fish–in the Marcellus and Utica Shale supply chain. You may recall MDN first wrote about a downstream chemical manufacturing company called Calumet back in Sept. 2012 when the company announced they are building a gas-to-liquids (GTL) plant in Karns, PA to convert Marcellus Shale gas to diesel fuel (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). Then, in March of this year, Calumet purchased Anchor Drilling Fluids outright for $235 million in cash (see Downstream Petrochemical Co Buys Upstream Frack Fluid Co). Anchor manufactures drilling mud and frack fluids used in shale drilling in the Marcellus, Utica and just about every other major shale play across the U.S. Last Friday Calumet announced they’ve purchased Specialty Oilfield Solutions (SOS), a full service solids control and drilling fluids company with operations in the Marcellus, Eagle Ford and Utica shale plays…
Read More “Downstream Calumet Buys Upstream Specialty Oilfield Services”