4 Cos. Shopping M-U Assets – Represents 11.5% of M-U Production
We recently received a couple of recent issues of a monthly news/analysis newsletter from The Capitol Forum (TCF). The author shared with us (and is allowing us to share with you) the March and April monthly editions of TCF Upstream Monthly, a publication that focuses on drilling in the Appalachian Basin. The April issue tackles the rumored Gulfport Energy/Ascent Resources merger we recently reported on (see Rumor: Gulfport Energy in Talks to Merge with Ascent Resources). Analysis of that potential merger is fascinating. However, it was tangential information part of the analysis that caught our eye. If you add up all of the assets currently rumored or known to be in play (for sale or merger), it amounts to 11.5% of all M-U production.
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According to Reuters, at least a dozen U.S. shale gas executives met yesterday in Houston, TX, with European energy officials to discuss expanding U.S. fuel supplies to Europe. Among those in the meeting were “top executives” from Chesapeake Energy, Coterra Energy (formerly Cabot Oil & Gas), and EQT Corp., the largest natural gas producer in the U.S. Individual meetings are planned between the execs and representatives from Latvia, Estonia, and Slovakia. It seems that Europe has finally opened its eyes (and its mind) to the benefits of American natural gas.
In January MDN reported comments by a Shell representative who said the mighty ethane cracker the company is building in Monaca (Beaver County), PA was 95% complete (see 
Analysis by S&P Market Intelligence notes that new shale drilling permits issued in Pennsylvania dipped in February 2022 when compared to February 2021 (and dipped compared with January of 2022). Fair enough. The question is, Why did permits dip in February? The article alludes to a possible reason–a dip in the Henry Hub NYMEX price in February, going below $5/MMBtu. While price may have played a role, we believe there’s another contributing factor to the permit dip in February.
We spotted two different articles published over the past couple of days about the recently nixed Marcellus LNG export plant that was planned for Wyalusing (Bradford County), PA (see 
Yes, you read it first on MDN. Two days ago MDN pointed out our observation that anti-fossil fuel cultists have begun to turn against the use of hydrogen, fearing it would mean boosting the use of natural gas in the process (see 
NATIONAL: New administrator confirmed for EIA; Blamed for high gas prices, oil executives defend themselves at a House hearing; Congress rounds up the usual Big Oil suspects; Financial officers from 27 states demand Biden bolster domestic energy production; INTERNATIONAL: As Ukraine war squeezes energy, UK looks again at fracking.
There’s a lot of finger-pointing going on about why a project to build a tiny $60 million LNG plant in South Philadelphia has come off the rails (i.e. dead). The developer for the project, Liberty Energy Trust, says Philadelphia Gas Works (PGW), the owner of the site, dithered around and took too much time to settle on a plan and now the “opportunity has passed” to build the project. Liberty has moved on to bigger and better things. PGW says developer Liberty Energy Trust tried to make “unacceptable changes” to the terms of the deal to develop the site and blames the company for not sealing the deal. Neither side has declared the project 100% dead, but it sure looks that way to us.
Yesterday the NYMEX Henry Hub futures price (front month) contract rose $0.32 (5.3%) to close at $6.03/MMBtu. That’s the first time since January the price has broken $6. Why the bump in price now? Is it because of the war (everything is blamed on the Ukraine war these days)? Nope. At least, mostly not because of the war. As always, the factors that drive the price of natural gas here in the U.S. are complex. A number of things together are responsible, but mostly (as is usual) it is the weather driving the higher price.
MiQ, one of three major certification authorities that puts its stamp of approval on “responsible gas” production (i.e. low methane leakage), announced two bits of news yesterday that caught our attention. First is that MiQ’s Digital Registry of Independently Certified Gas currently has 350 billion cubic feet (Bcf) of “responsibly produced gas” ready for buying and selling. Second is that MiQ has launched a new certification service called the Certified Supply Chain.
For years (more than a decade) we’ve heard the left criticize shale companies as a “Ponzi scheme” that’s not profitable–drilling new wells to make up for declining production in old wells–all the while bilking investors. People like Ian Urbina of the New York Times tried to paint shale companies as fraudsters, going back more than ten years (see 
Last week Pennsylvania issued 14 new shale well permits, with EQT Corp. grabbing eight (seven of them on a single pad in Fayette County), and Coterra Energy (formerly Cabot Oil & Gas) receiving three (all on the same pad in Susquehanna County). Ohio issued ten new permits last week, with three going to a relative newcomer, Utica Resource Operating (same pad in Guernsey Count) and three for Encino Energy (same pad in Harrison County). West Virginia got skunked and shows no new shale permits issued last week. Pity.
New York’s corrupt Governor, Kathy Hochul, learned well from her mentor, sexual predator (and extremely corrupt) Gov. Andrew Cuomo, when it comes to forcing her will on the citizens of New York. Cuomo snuck a permanent fracking ban into the state budget two years ago (see