EQT Sets New World Drilling Record; Deals to Sell 1.2 Bcf/d via MVP
EQT Corporation, currently the largest producer of natural gas in the U.S., provided its third quarter update yesterday. And wow! There is plenty to talk about. The company set another drilling world record of 18,264 feet in 48 hours, beating the existing world record set by EQT in the second quarter (see EQT Sets World Drilling Record; Tug Hill Deal to Close Next 30 Days). CEO Toby Rice announced the company recently signed two long-term deals with natural gas customers who will buy EQT’s molecules from the Mountain Valley Pipeline (MVP) when it gets completed. The two deals collectively add up to 1.2 Bcf/d heading to the southeastern U.S.
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New shale permits issued for Oct 16 – 22 in the Marcellus/Utica rebounded. There were 22 new permits issued last week, versus 14 the week before. Last week’s permit tally included 17 new permits in Pennsylvania, 5 new permits in Ohio, and no new permits in West Virginia. Chesapeake Energy was the top permittee for the week, drawing 7 permits between two counties in PA: Susquehanna and Wyoming (northeastern part of the state). EQT had 5 permits across two PA counties: Greene and Washington (southwestern part of the state). And Ascent Resources had 5 permits in Ohio in two counties: Guernsey and Harrison.
MARCELLUS/UTICA REGION: Gov. Hochul announces largest-ever state investment in renewables; First NY ‘orphaned’ gas well plugged with federal funding; NATIONAL: Natural gas back at mid-$3 on modest storage build; How drones are enhancing the gas industry’s safety; INTERNATIONAL: Oil refiners struggle for financing as banks shun fossil fuels.
Range Resources Corporation, the very first company to drill a shale well targeting the Marcellus Shale layer in Pennsylvania (in 2004), issued its third quarter update yesterday. In prior guidance from earlier this year, Range said it would drill between 60-65 wells in 2023. However, with this latest update, that number was revised down to 51 new wells in this latest update. The reason for drilling fewer wells, according to the Range officials, is that the company is drilling longer wells, achieving the same amount of lateral feet with fewer holes in the ground. Even though fewer new wells are coming, the ones that are drilled produce more.
Yesterday, CNX Resources issued its third quarter 2023 update. Even with a crash in the price of natural gas this year, CNX generated $21 million in net profit during 3Q23 versus losing $427 million in 3Q22. The company also managed to generate $19 million in free cash flow in 3Q23. Of particular interest for us is that of the 13 new wells brought online during the quarter, four of them were drilled under runways at Pittsburgh International Airport. CNX has a public-private partnership with the airport to drill wells on airport property. The original plan called for 45 wells, but as of last year, only 14 wells had been drilled (see 
Shrill antis have their answer from the U.S. Court of Appeals for the District of Columbia (D.C. Circuit) in a request to (once again) shut down construction on the Mountain Valley Pipeline (MVP): NO! A small group of uppity Virginia landowners don’t want MVP crossing their horse pastures, leaving a mark. So they conspired with Big Green lawyers in a lawsuit challenging the right of the Federal Energy Regulatory Commission (FERC) to use eminent domain to build pipelines across private land.
The Baker Hughes rig count has crashed this year compared to last year’s numbers. A few months ago, we began to chronicle the weekly rig count to keep track of this alarming situation (which we post about every Monday). U.S. Energy Information Administration (EIA) analysts have taken notice of the crashing rig count and asked themselves: Why? It may seem obvious, but EIA points out in a new post on its Today in Energy website that the crash in the natural gas rig count directly correlates to the crash in the price of natural gas.
On Sept. 1, the Pipeline and Hazardous Materials Safety Administration (PHMSA), part of the Biden Dept. of Transportation, issued a federal rule suspending a 2020 authorization of LNG transportation in rail tank cars granted under the Trump administration (see 
A company called Southern Tier CO2 to Clean Energy Solutions, based in Binghamton, NY (where MDN is located), is sending fliers to landowners in Broome, Tioga, and Chemung counties (along the border with Pennsylvania, where there is no doubt large amounts of Marcellus and Utica gas beneath the ground) inviting landowners to sign up for what appears to be an exciting opportunity to sell gas rights. The flier (below) and company website say the company plans to use carbon dioxide (CO2) to (a) store it underground, but also (b) use it to extract natural gas from underground and then (c) either sell the gas via pipeline or burn it to produce electricity. The technology envisioned is an alternative to fracking. Will it work? And, will it be profitable for landowners?
Last week, MDN brought you the news that the 303-mile Mountain Valley Pipeline (MVP) will not be completely done and online until sometime in the first quarter of 2024 (see 
The Tennessee Valley Authority (TVA) is a federally-owned electric utility corporation in the U.S. TVA’s service area covers all of Tennessee, portions of Alabama, Mississippi, and Kentucky, and small areas of Georgia, North Carolina, and Virginia. TVA is the sixth-largest power supplier and the largest public utility in the U.S. Two years ago, MDN told you that TVA is spending over $1 billion to replace six coal-fired plants with natgas-fired turbines (see