Marcellus Drilling News

Energy Companies | Rex Energy

Rex Energy 2013: Production, Revenue Up; 11 New Wells This Year
February 21, 2014February 21, 2014

Rex Energy, our “little energy company that could (and is)” continues to chug along. A couple of days ago Rex issued their 2013 financial and operational year in review. The company, mainly focused on the Marcellus and Utica Shale region, continues to grow production (up 38% in 2013) and grow revenues (up 61% in 2013). As part of the update they give us their best guess (“guidance”) as to what lies ahead in 2014. Rex plans to drill 11 new wells and, along with a few wells already drilled, frack 17 wells in 2014.

Here’s the full Rex update for 2013/looking ahead to 2014, which includes detailed information on some of their recently drilled wells:
Read More “Rex Energy 2013: Production, Revenue Up; 11 New Wells This Year”
Energy Companies | PDC Energy

PDC Energy 2013: Production Up 35%; 200 Utica Locations on Radar
February 21, 2014February 21, 2014

PDC Energy is focused on shale drilling in three plays/regions: the Wattenberg Field in Colorado, the Utica Shale in southeast Ohio and the Marcellus Shale in West Virginia. The company owns roughly 125,000 acres of leases in the Marcellus Shale and 48,000 acres of leases in the Utica Shale. PDC issued their fourth quarter and year end results for 2013 yesterday and it was a good year for this growing company. Production was up 35% overall with oil and NGL volumes up 40% for the year.

Although they’ve only really just gotten started with their Utica drilling program, PDC reports they have 200 locations targeted for future Utica drilling. Not all of that will happen in 2014 of course. Even though PDC had substantially higher production, they experienced a net loss on the balance sheet due to risk pricing for natural gas–complicated financial trading of derivatives to hedge against price risk (trading which didn’t go the way they wanted it to). The net loss for 2013 was a lot less than the loss in 2012, so the trend is going in the right direction. Here’s the update issued yesterday, updating the financial and operational picture for PDC:
Read More “PDC Energy 2013: Production Up 35%; 200 Utica Locations on Radar”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

Beaver County, PA – In the Marcellus/Utica Catbird Seat
February 21, 2014February 21, 2014

In many ways, Beaver County, PA is in the catbird seat with respect to the Marcellus and Utica Shale. The county has seen some Marcellus drilling with 17 unique well permits were issued for Beaver for the last four months of 2013 according to the latest volume of the Marcellus and Utica Shale Databook. However, it is Beaver’s geography for reasons other than drilling that gives it its advantage: the Ohio River flows through Beaver; two interstate highways pass through; lots of railroads; and of course, close to the Pittsburgh International Airport.

Beaver is also the chosen location for Shell and their $2-$3 billion ethane cracker plant. It’s been a roller coaster of will they or won’t they build it? Lately, it certainly seems like Shell is favoring a green light for the project–but only when they finally buy the property on which a now closed zinc plant sits will everyone breath a sigh of relief that the project is a done deal. (See Shell to Begin Demolition at PA Ethane Cracker Site Early 2014 for the latest.) Even if Shell doesn’t build the cracker plant, Beaver County officials say there’s still a lot happening in the county and the future looks bright, because of the Marcellus…
Read More “Beaver County, PA – In the Marcellus/Utica Catbird Seat”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines

NGPL Launches Open Season to Expand, Carry NE Gas South
February 21, 2014February 21, 2014

Two days ago Natural Gas Pipeline Company of America LLC (NGPL), a division of America’s largest midstream company Kinder Morgan, announced a 14-day non-binding open season to gauge interest in the potential expansion of its Gulf Coast mainline system. The expansion would increase NGPL’s flow capability up to 750,000 dekatherms per day of incremental volume from the Rockies Express Pipeline (REX) interconnection at Moultrie, IL. I would reverse the flow at several compressor stations, sending Marcellus and Utica Shale gas south on its pipeline system to Texas and Louisiana.

Here’s Kinder Morgan’s announcement of the NGPL open season, which runs through March 4th:
Read More “NGPL Launches Open Season to Expand, Carry NE Gas South”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Feb 21, 2014
February 21, 2014February 21, 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: Fri, Feb 21, 2014”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Remains of Chevron Contractor Found at Greene County Well Site
February 20, 2014February 20, 2014

Unfortunately our worst fears were realized when PA State Police announced yesterday they had removed “what appear to be” the remains of Ian McKee, 27, a Cameron International contractor working at the Chevron Marcellus well site in Greene County. A warning folks, this is a bit gruesome. Apparently they found some bones but no body. It is a heart-rending story. No matter who it would have been, it’s a tragedy. In the case of Ian, he was young, living with his fiance with a baby on the way. Please say a prayer for his family and friends–they will need it in the coming days as they deal with this.

To their credit Chevron released a statement about finding Ian (see below). Oddly, the company Ian worked for that was doing contract work for Chevron–Cameron International–has not posted any public statements on their website… from the beginning. Below Chevron’s statement is a news account of the “somber” news conference held yesterday where Chevron announced finding Ian’s remains…
Read More “Remains of Chevron Contractor Found at Greene County Well Site”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Chevron: Sorry Turning Your Life Upside Down–Here’s a Free Pizza
February 20, 2014February 21, 2014

In the midst of a public relations emergency (nightmare), snap decisions are made quickly. Frankly, it’s tough to be critical about the decisions made under such pressure. It’s tough to imagine what someone goes through until you “walk in their shoes.” We’re mindful of that and this is not an attempt at “piling on.” But we can’t ignore the story of how Chevron has addressed the current Greene County, PA well fire crisis. A worker from a contracting company–Cameron International–lost his life in the explosion and fire that raged for nearly five days before it burned out. As we’ve noted several times, to their credit, Chevron was open and transparent, posting frequent updates on their website (see Chevron’s Updates here).

During the crisis emergency equipment, personnel and around-the-clock activity in the area greatly disrupted the lives of those living nearby. Someone at Chevron decided it would be a good idea to show the company’s appreciation to those neighbors whose lives were turned upside down. So Chevron reps went door to door at about 30 nearby homes and handed out…a coupon for a free pizza and 2 liter soda–value $12. Thunk. While we appreciate they wanted to do something, this was decidedly not the best decision that could of been made by Chevron during this entire crisis, as noted by the Washington Observer-Reporter:
Read More “Chevron: Sorry Turning Your Life Upside Down–Here’s a Free Pizza”
American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

McClendon Hauls in Another $1.2B, Utica Shopping Spree Continues
February 20, 2014February 20, 2014

Aubrey McClendon is a high roller kind of guy–I think we can all agree on that one. We respect a guy who can put together deals like Aubrey can. A few weeks ago he announced that he had done deals to lease another 130,000 acres in the Ohio Utica Shale (see McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma). Now he has to come up with the cash to pay for the deals. The company already has some of the cash, but they need more. Yesterday Aubrey announced that his new company, American Energy Partners, has raised an eye-popping additional $1.2 billion in cash, bringing his grand total (so far) to $2.9 billion raised since last October. The man has sure got some moves!

Here’s the latest complicated financing deals Aubrey’s been up to so he can continue snapping up Utica acreage, of which he once famously said “[the Utica] is the best thing to hit the state of Ohio economically since maybe the plow”…
Read More “McClendon Hauls in Another $1.2B, Utica Shopping Spree Continues”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Already in Trouble, Passage Doubtful
February 20, 2014February 20, 2014

Yesterday MDN told you about the new initiative in the West Virginia legislature to revive (yet again) a forced pooling bill (see WV Legislature Makes Another Run at Forced Pooling/Unitization). A few more details on that initiative have (as we suspected) appeared in WV media outlets. Not only was House Bill (or HB) 4558 introduced, but a companion bill Senate Bill (SB) 578 was also introduced. Already one of the senators sponsoring the Senate bill has asked his name to be removed and is backing away from it, saying the measure “will not pass.”

Even Corky Demarco, executive director of the West Virginia Oil and Natural Gas Association, says he’s “not sure” of the outcome for the legislation. All of which means it sure looks to us like it’s (once again, thankfully) DOA for this session. However, we’ll continue to keep an eye on it. Here’s the latest…
Read More “WV Forced Pooling Bill Already in Trouble, Passage Doubtful”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition
February 20, 2014February 20, 2014

MDN told you in stories both yesterday and today about WV House Bill (HB) 4558 that would allow forced pooling in the state–a bill that seems headed for defeat. However, there is a second House Bill actively under consideration related to the Marcellus/Utica drilling industry in the state. HB 4411 would establish in law that WV municipal landfills can legally accept over the current legal monthly maximum limit of drill cuttings for disposal (full copy of the bill is embedded below). Last year the WV DEP issued a directive that allows landfills to accept drill cuttings over the maximum 10,000 tons, something that some landfills have done since that time (in some cases landfills are accepting up to 40 tons per month). Apparently HB 4411 will codify the DEP directive into law, meaning future administrations can’t arbitrarily decide to rescind the more generous directive in place now.

A House hearing was held yesterday on HB 4411. Of the 20 speakers who addressed the House panel, 19 of them spoke against the law. The sole supporter was Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia. Here’s more of the story on disposing of drill cuttings (leftover rock and dirt) in municipal landfills…
Read More “WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition”
Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream

EnLink’s 2014 Crystal Ball: $525M Revenue, $430M Capex
February 20, 2014February 20, 2014

Stockholders will soon vote on the previously announced merger between midstream company Crosstex Energy and driller Devon Energy (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). There’s no reason to think the merger will not proceed smoothly. Both companies have operations in the Marcellus and Utica Shale region. The name of the new Devon subsidiary will be EnLink Midstream. As we previously mentioned, Barry Davis, CEO of Crosstex will become (or remain) CEO of EnLink. For us this is a feel-good merger–no one loses their job and Davis, by all accounts, is a really nice guy to work for (see A Peek Behind the Curtain of Crosstex/Devon Midstream Marriage).

Yesterday Crosstex issued their “best guess” as to what revenues and expenses will be for the company for 2014–something financial types call “guidance.” Here is Crosstex/EnLink’s best stab at peering into the crystal ball for 2014…
Read More “EnLink’s 2014 Crystal Ball: $525M Revenue, $430M Capex”
Hydraulic Fracturing | Industrywide Issues | Regulation | Research

Another Day, Another “Study” Saying Marcellus Kills Nature
February 20, 2014February 20, 2014

We sometimes wonder: Do some humans suffer from species guilt? Why do some people seem to believe that the human animal–the crowning achievement of all of God’s (or evolution, depending on your view of origins) animals–is actually an infestation on Mother Earth? There is a direct correlation between man’s development and use of energy, and man’s advancement. We live longer, are healthier, and enjoy more “stuff” than ever–largely because of energy: electricity, oil, natural gas and coal. Everything from your phone to your computer to the clothes you wear and the shoes on your feet, even what you eat–all of it is derived from and delivered by abundant energy sources. And yet, some humans want to turn the clock back–they want less energy. It’s like they have a death wish for the human species, or perhaps they are self-loathing. It’s simply irrational and unfathomable.

Those are the thoughts we had after reading about the latest release of a “study” that takes a look at how drilling in the biggest and best shale play–the Marcellus–maybe, might, possibly, could, theoretically lead to the destruction of wildlife habitat and freshwater ecosystems. But why stop there? Let’s throw in wind power too! Wind power also screws up wildlife habitats. And so this latest “research” study, titled Shale Gas, Wind and Water: Assessing the Potential Cumulative Impacts of Energy Development on Ecosystem Services within the Marcellus Play (copy embedded below, authored by the anti-drilling Nature Conservancy and published in a “peer-reviewed” journal), seeks not to eliminate Marcellus drilling (because that train has already left the station), but instead encourages Soviet-style central planning by government bureaucrats to minimize the effects of all this willy nilly drilling that’s goin’ on out they’a…
Read More “Another Day, Another “Study” Saying Marcellus Kills Nature”
Access Midstream Partners | Energy Services

Access Midstream Execs Tout the Marcellus/Utica on Analyst Call
February 20, 2014February 20, 2014

MDN told you yesterday that Access Midstream had a really good year in 2013, thanks in part to the Marcellus and Utica Shale (see Access Midstream Has a Good Year: Revenue Up 80% for 2013). The executive team for Access held a conference call with analysts yesterday and (no surprise) a lot of the talk revolved around the Marcellus and Utica. We thought it was interesting and thought you might too:
Read More “Access Midstream Execs Tout the Marcellus/Utica on Analyst Call”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Lewis County | Regulation | Statewide WV | West Virginia

The Twisted Logic of an Anti-Driller: Blame Natgas for Everything
February 20, 2014February 20, 2014

If you try to enter the mind of a devoted anti-driller to understand their viewpoint and how they think, you risk going insane. We caution against it.

Here’s an example of how “logic” works for anti-drillers. There’s a big chemical spill that affects the drinking water for 300,000 West Virginians–caused by the coal mining industry. You no doubt remember the headlines from a month or so ago. Since the coal industry caused the problem, we need new legislation that targets the shale drilling industry. Wait, what??? Yeah, that’s how logic works for an anti-driller…
Read More “The Twisted Logic of an Anti-Driller: Blame Natgas for Everything”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Feb 20, 2014
February 20, 2014February 20, 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, Feb 20, 2014”
Bradford County | Chesapeake Energy | Citrus | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Greene County (PA) | Lycoming County | Pennsylvania | Statewide PA | Susquehanna County | Washington County

PA Gas Production #s Released: Top 10 Wells, Top 5 Counties & More!
February 19, 2014February 19, 2014

Pennsylvania released their second half 2013 production numbers yesterday and man oh man is it another sizzling hot report. Another 700 horizontal (mostly Marcellus) shale wells were brought online in the second half of 2013 in PA which brings the number of horizontal wells with reported production to 5,074. And, in what we believe is a first, Susquehanna County has displaced Bradford County as having the most production during a 6-month reporting period.

Not surprisingly Cabot Oil & Gas and their prolific wells in Susquehanna County top the list as most productive. Get this, when you look at average daily production by wells, Cabot has the top 13 most productive wells in the state for 2H13–all top 13 spots. When you expand it out, they have 17 of the top 20 spots, and 34 of the top 50 spots. Truly astonishing.

Below we have a few lists for you: Top 10 All Time Producing Wells in PA, Top 10 Wells by Production per Day, and the amount of gas produced by the top 5 counties in PA…
Read More “PA Gas Production #s Released: Top 10 Wells, Top 5 Counties & More!”