Marcellus Drilling News

Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Rice Energy

Bloomberg Reporter Takes Aim at Rice Energy, Comes Up Short
May 1, 2014May 1, 2014

A dispassionate, “unbiased” reporterette from Bloomberg, Asjylyn Loder, does everything but swing an ax at Marcellus and Utica Shale driller Rice Energy with a new hit piece that tries to paint Rice as a horrible company to invest in. She takes aim at trying to sink Rice with an article on the Bloomberg wire by saying it’s financially unsound–even though Rice is ultimately backed by billionaire founder Dan Rice. Apparently what set off Ms. Loder was that Rice was able to raise $950 million over three days in April ($150 million more than they were looking for) by floating bonds. What seems to really gall her is that they got the money at a relatively low interest rate. Loder calls them junk bonds and hints Rice will never be able to pay them back.

Nice try Ms. Loder, but no cigar for the anti-drilling lady with the big chip on her shoulder…
Read More “Bloomberg Reporter Takes Aim at Rice Energy, Comes Up Short”
Energy Services | Williams

Williams NE Operations Turn a Profit in 1Q14, Continued Build-out
May 1, 2014May 1, 2014

Williams is one of the country’s largest midstream (pipeline) companies–and an important midstream presence in the northeast in both the Marcellus and Utica Shale. Yesterday Williams issued their first quarter 2014 operational and financial update. The Marcellus/Utica rated a couple of prominent mentions in the update, which we’ve extracted for you below.

We also have included Williams’ quarter “data book” below, in essence their 1Q14 analyst PowerPoint slide deck. Lots of interesting slides covering northeast pipelines and processing plants…
Read More “Williams NE Operations Turn a Profit in 1Q14, Continued Build-out”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Greene County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Washington County

EQT Sells Jupiter Pipeline System to Itself for $1.18 Billion
May 1, 2014May 1, 2014

Yesterday Marcellus Shale driller EQT sold it’s Jupiter natural gas gathering pipeline system in Greene and Washington counties (PA) to…itself. Or rather, EQT Corporation has sold the Jupiter system to EQT Midstream Partners LP. Two different companies on paper, but still the same company overall. The deal to itself was for $1.18 billion–$1.12 billion of cash and $59 million of common and general partner units. All of which will keep the accountants busy and happy for a few months.

You may recall this is not the first time EQT has sold something to itself (see EQT Sells Sunrise Pipeline Operation to Itself for $540M). Oh the hoops we jump through to try to make a living under our bizarre tax codes. Here’s the announcement, with some interesting details about the Jupiter gathering system…
Read More “EQT Sells Jupiter Pipeline System to Itself for $1.18 Billion”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

EDF Endorses Drilling & Fracking Again, Sort Of
May 1, 2014May 1, 2014

Former Mayor of New York City Michael Bloomberg, a very wealthy Democrat who ran as a Republican and then changed to become an Independent, along with the mostly anti-drilling head of the Environmental Defense Fund, Fred Krupp, teamed up to write an op-ed which they sent around to, well, everyone, including MDN. The New York Times picked it up and ran it, so we though we would insert it below. It essentially says regulations so strict they force the breath out of shale drillers is a good thing. So let’s continue to let them drill, as long as they jump through fractals of hoops while they do it.

The piece is noteworthy because the EDF, the “best” of the anti-drilling wacko so-called environmentalist organizations, frequently is criticized by their wacko “green” brethren because they won’t call for an outright ban on all shale drilling. And indeed in this op-ed Krupp endorses shale drilling and fracking–but like we said, as long as it’s regulated so tight it leaves drillers with little profit or incentive…
Read More “EDF Endorses Drilling & Fracking Again, Sort Of”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, May 1, 2014
May 1, 2014May 1, 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, May 1, 2014”
Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range’s Record-Setting Marcellus Well Nearly Ties Best Utica Well
April 30, 2014April 30, 2014

Yesterday on an their quarterly analyst phone call, Range Resources CEO Jeffrey Ventura announced the company drilled their best-ever well in the “super-rich” portion of the Marcellus Shale in southwestern Pennsylvania during 1Q14. Indeed, it is the best-ever Marcellus well drilled by anyone–not just Range. When we compare the results of Range’s top well with the best well we’ve heard of in the Utica–it nearly ties the top Utica contender, Antero Resource’s Yontz well (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). We were not able to locate the name or specific location of the Range well, but what we can tell you is this: It was drilled in SW PA on a pad with two other wells. It had an initial 24-hour rate of 6,357 barrels per day (versus the Yontz well’s 8,879 boe/d), or 38.1 million cubic feet equivalent per day (versus the Yontz well’s 38.9 Mmcfe/d). The Range well has a 7,065 foot lateral length (nearly a mile and a half long) with 36 stages tapping the Marcellus Shale. Truly impressive stuff. Even more impressive–there’s a Utica Shale layer below it and an Upper Devonian layer above it that Range can drill in the future. In other words, Range is just getting started.

Below we have a quote from CEO Jeff Ventura on yesterday’s investor analyst phone call along with the press release Range issued on Monday summarizing first quarter results. We’ve also included the PowerPoint presentation (VERY interesting slides) Range released on Monday…
Read More “Range’s Record-Setting Marcellus Well Nearly Ties Best Utica Well”
Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range CEO & COO Talk Marcellus, Utica & More
April 30, 2014April 30, 2014

Although analyst calls are sometimes dry affairs, MDN found a lot to like in yesterday’s Range Resources analyst call that discussed first quarter 2014 results along with some predictions for where the company is going. The call kicked off with Range CEO Jeffrey Ventura and Range COO and Executive VP Ray Walker. Here’s a portion of the transcript from the call worth reading:
Read More “Range CEO & COO Talk Marcellus, Utica & More”
Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Belmont County Shopping New Deal to Lease Additional 426 Acres
April 30, 2014April 30, 2014

Belmont County, OH commissioners like the $3 million check they just got from Rice Energy for leasing 406 acres of county-owned land (see Belmont County, OH Waiting for $3M Lease Check from Rice Energy). That’s $7,500 per acre for a signing bonus! Commissioners with Belmont like that gas money so much, they’re now looking to lease another 426 acres–at an even higher price. Oy vey!

The announcement about Belmont shopping for another lease deal came at a meeting last week…
Read More “Belmont County Shopping New Deal to Lease Additional 426 Acres”
Crime | Industrywide Issues | Marshall County | Trucking | West Virginia

Moundsville, WV Vigilante Councilman Stops Tractor Trailer
April 30, 2014April 30, 2014

Moundsville (Marshall County), WV Councilman Phil Remke illegally pulled in front of a tractor trailer hauling a backhoe traveling down a street he says the truck was not supposed to be traveling. Remke’s stunt, which endangered himself, the truck, and other motorists, elicited a police response. Remke says big trucks in the area hauling equipment for gas drillers are ruining city streets. Apparently Remke is patrolling on his own to ensure trucks don’t travel prohibited streets–even though he admits the signs prohibiting truck traffic on certain streets are too small and go unnoticed.

Here’s the story of the vigilante councilman in Moundsville…
Read More “Moundsville, WV Vigilante Councilman Stops Tractor Trailer”
Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Williams Avoids Fine in WV for Marshall County Pipeline Explosion
April 30, 2014April 30, 2014

Should drillers (and pipeline companies) be responsible for damage done from their installations if an accident occurs that’s not really the fault of the driller or pipeline operator? It’s a valid question, and one playing out in West Virginia. On Saturday morning, April 5th, a 12-inch Williams pipeline in Marshall County, WV exploded and burst into flames, resulting in damages to two acres of trees and causing the evacuation of nearby residents (see Williams Pipeline Rupture/Fire in Marshall County, WV). It appears, from all accounts, that a landslide put extreme pressure on the pipeline causing a welding joint to break, resulting in a spark, the explosion, and the fire (see Williams Restores Service on Ruptured WV Pipeline, More Details).

The West Virginia Dept. of Environmental Protection investigated and concluded that since there was no contamination of water supplies, it would not fine Williams for the explosion and fire that destroyed two acres of trees. Should Williams be on the hook anyway? Here’s an article detailing the WV DEP’s reasoning:
Read More “Williams Avoids Fine in WV for Marshall County Pipeline Explosion”
CONSOL Energy | Energy Companies

CONSOL 1Q14: Top Mgmt Changes, Change to Shale Driller Continues
April 30, 2014April 30, 2014

It’s hard to believe, but CONSOL Energy, originally a coal company, is 150 years old. The company was founded when Abe Lincoln was alive. As CONSOL’s current CEO Brett Harvey (retiring in May) says mentioning Abe and the age of CONSOL is relevant “because good assets, with the right strategy, are timeless.” CONSOL issued their first quarter operating and financial report yesterday (see it below). After experiencing a net loss last year at this time, CONSOL’s 1Q14 net income was a healthy $116 million on the black side of the ledger.

In the Marcellus Shale, CONSOL Energy and its joint venture partner drilled 35 wells, completed 23 wells, and had 11 wells turned in line. In the Utica Shale, CONSOL Energy and its joint venture partner drilled 7 wells, completed 3 wells, and had 10 wells turned in line. Below we have an overview of yesterday’s CONSOL 1Q14 report, the report itself, and a portion of an analyst call with top management…
Read More “CONSOL 1Q14: Top Mgmt Changes, Change to Shale Driller Continues”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Latest Attack on PA Drillers: Discrimination
April 30, 2014April 30, 2014

Pennsylvania’s Act 13 Marcellus drilling law, passed two years ago and now partially gutted by seven selfish towns (see Act 13 Case Goes Back to Court, Drillers Petition to Join Lawsuit), has a provision that requires PA drillers to provide “maximum practicable contracting opportunities for diverse small businesses,” defined as minority, women, or veteran-owned businesses. Please don’t get us started on reverse discrimination in this country. Just play along for the moment and pretend such silly ideas are good and righteous (when indeed they are not). Fortunately the Act 13 law does not set quotas–but it does require an annual survey to be filled out and returned to the state. Apparently some drillers have not been filing their paperwork (naughty white boys) providing platitudes about how they try to find “diverse small business” to shower with their largess. Voila! A new, instant issue which anti-drillers will use to try and bludgeon to death the miracle of hydraulic fracturing and the economic miracle happening in Pennsylvania.

The hew and cry will go out that drillers are all white, rich men who discriminate against the poor and disadvantaged. Which is, of course, horse manure…
Read More “Latest Attack on PA Drillers: Discrimination”
Energy Services | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Attorney Says Sunoco Should Seek FERC Approval for Mariner East
April 30, 2014April 30, 2014

A Pittsburgh attorney, writing in the Pittsburgh Post-Gazette, weighs in on the complex issue of whether or not Sunoco Logistics is a public utility corporation under Pennsylvania’s definition with the right to use eminent domain to force landowners in Washington and Westmoreland counties to allow Sunoco to lay pipeline under their land. The pipeline in question, as we previously wrote about, is the Mariner East ethane pipeline. Sunoco needs to lay 50 miles of pipeline in western PA. Most of the Mariner East pipeline already exists (being repurposed) and stretches from western PA all the way to Philadelphia and the Marcus Hook refinery. Sunoco still needs to build 31 compressor stations along the pipeline’s route as it crosses PA (see More Pushback from PA Residents on Proposed Mariner East Pipeline).

Sunoco is facing a plethora of lawsuits and filings to counter their request to be declared a public utility corporation (not to be confused with being a public utility proper). Pittsburgh attorney William P. Bresnahan II says that Sunoco likely is a public utility based on a definition by the Federal Energy Regulatory Commission (FERC). He hints that if Sunoco plays their cards right–by which he means seeking and getting FERC approval for the Mariner East project–Sunoco will put to rest endless local lawsuits. However, getting FERC’s buy-in is not an easy matter…
Read More “Attorney Says Sunoco Should Seek FERC Approval for Mariner East”
Industrywide Issues | Pennsylvania | Regulation | Seismic Testing | Statewide PA

Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law
April 30, 2014April 30, 2014

Anti-drilling Democrat PA Rep. Robert F. Matzie (District 16) is set to introduce new legislation in the Republican-controlled PA House that will make it nearly impossible for seismic testing to take place in the state. He intends to introduce a bill that automatically assumes seismic testing is responsible for damage to property within 1,000 feet of where it happens. If a thumper truck goes down your road, and you want to get that crack fixed that’s been in your basement wall for the past 10 years, here’s your chance. Just claim seismic testing is at fault and send the bill to the testing company. Nuts.

Here’s the rather funny announcement from Matzie saying this legislation is really not anti-drilling, oh no, and that he only wants to protect Pennsylvanians from evil, nasty seismic testing companies…
Read More “Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law”
Energy Services | Industrywide Issues | Pipelines | Transco | Williams

More Specifics on Deal for Georgia Pipeline Flowing Marcellus Gas
April 30, 2014April 30, 2014

Two weeks ago MDN told you the good news that Marcellus Shale gas will soon be on its way to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). The Williams Transco pipeline expansion to Georgia is called the Dalton Expansion Project and is already 100% spoken for. In the announcement from two weeks ago we learned that Williams’ partner in the expansion is AGL Resources, a natgas distribution, wholesaler and midstreamer with headquarters in Atlanta, GA. The new pipeline expansion in Georgia will be owned 50/50 by Williams and AGL.

We now have a few more specifics about the AGL/Williams deal, including the fact that AGL is putting up $210 million to help fund the project…
Read More “More Specifics on Deal for Georgia Pipeline Flowing Marcellus Gas”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Apr 30, 2014
April 30, 2014April 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: Wed, Apr 30, 2014”