Other Stories of Interest: Fri, Jul 30, 2021
OTHER U.S. REGIONS: Tellurian finalizes offtake agreements for first phase of Driftwood LNG; NATIONAL: Former natural gas exec weighs climate controversy; DUC clock ticks on cheap production: low-cost cash flow won’t last; Critical U.S. pipelines remain stopped, as Russian pipelines are greenlighted; Hijacking natural gas #1 (video); INTERNATIONAL: Big Oil shows confidence that big profits era is back.
Read More “Other Stories of Interest: Fri, Jul 30, 2021”
On Tuesday the U.S. Energy Information Administration reported that due to rising spot demand in both the winter and summer months from Asia and Europe, and lower natural gas prices here in the U.S. versus the price elsewhere, LNG exports in the U.S. hit record hights for the first half of this year. That’s good news for Marcellus/Utica drillers and landowners. LNG exports jumped to an average of 9.6 billion cubic feet per day (Bcf/d) between January and June 2021, up by 42% compared with the first half of 2020.
Yesterday pipeline giant Williams released its 2020 Sustainability Report, which is another name for ESG (environmental, social, and governance). The company says it will be net carbon zero by 2050, but in the meantime, they will meet other important targets long before that date. While it would be easy to dismiss this report as yet another 126-page manifesto in gobbledegook aimed at placating the global warming gods, when we began to dig into the report we found some interesting bits of information and statistics.
Every now and again we’ll pick up and run a press release from a company looking to sell something to the M-U energy space. This is one of those times. We spotted a release from a company that has launched an online platform used by natural gas buyers to manage their purchases (i.e. trades). Mickey is an online commodities trading platform that connects buyers and sellers of natural gas (in addition to other commodities). Mickey’s platform enables domestic natural gas buyers to source supplies from small-to-medium-sized producers in the U.S. The platform currently offers energy supply sourcing in New York, Ohio, and Pennsylvania–with plans to expand over time.
Range Resources, the very first company to sink a Marcellus Shale well (back in 2004), reported on second quarter results earlier this week. Range produced an average of 2.10 billion cubic feet equivalent per day (Bcfe/d) in 2Q, of which 31% was “liquids” or NGLs, like ethane and propane. In fact, Range’s NGL production was in the limelight, earning the company its highest price for NGLs ($27.92 per barrel) since 2014. However, even with the boost in NGL prices, the company still lost $156 million for the quarter, which is down slightly from losing $168 million in 2Q20. The company reports generating “significant” free cash flow.
In June MDN brought you the news that three Democrat judges on the U.S. Court of Appeals for the D.C. Circuit overturned a Federal Energy Regulatory Commission (FERC) approval for a long-completed and flowing natural gas pipeline in the St. Louis area that flows Marcellus/Utica gas to residents, businesses, and electric generating plants throughout the region (see 
In May MDN brought you the news that Ohio mineral rights owner Gateway Royalty was sounding the alarm over a new bill quickly advancing in the Ohio legislature. House Bill (HB) 152 would use forced pooling if 65% of a proposed unit’s landowners are leased (too low a bar) and also would force the landowner to accept a 12.5% royalty and force them to accept post-production deductions with royalties in some cases potentially going down to nothing (see 
Expectations coming from Wall Street are that pure-play drillers, like many in the Marcellus/Utica, will show a turnaround in their financials for the second quarter of 2021. According to S&P, investors took drillers at their word last year that they won’t “drill baby drill” the way they have in years gone by. The stock prices of nearly all major M-U drillers have soared over the past 12 months as a result. The biggest turnaround has been Antero Resources. Its stock price is up nearly 400% over the past 12 months! Range Resources’ stock price is up 140%.
Only Pennsylvania issued new permits over the past week to drill shale wells. Both Ohio and West Virginia issued no new permits. New permits for PA were issued for Southwestern Energy (4 new permits), Laurel Mountain Production (3 new permits), and 1 new permit each for Cabot Oil & Gas, CNX Resources, and EQT (aka Rice Drilling).