A Different View re CNX’s Move to Buy Rest of Pipeline Subsidiary
Yesterday MDN brought you the news that CNX Resources is buying out the balance of what they don’t own in their pipeline subsidiary CNX Midstream (see CNX’s Competitive Advantage: Owning Its Own Pipelines). Our take on the news is that by owning their own pipeline network CNX has a distinct competitive advantage. We heard in pretty short order a different view from a couple of MDN readers…
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Less than one year after buying Baker Hughes, GE decided it didn’t want its bright shiny new toy anymore and would divest itself of Baker Hughes (see 
The National Whistleblower Center (NWC), a partisan (Democrat) nonprofit group, last December launched what it calls a “Climate Corruption Campaign” to “enlist whistleblowers in the fight against fraud and other crimes in the three industry sectors responsible for the vast majority of the world’s carbon pollution: oil and gas, coal, and industrial logging” (see 
President Trump visited the Permian Basin yesterday to announce export authorizations for LNG will now go through 2050, to sign four permits for pipeline and rail transport of fossil fuels, and to get the truth out about his administration’s efforts to make America secure by making our country “energy dominant.” The liberal media spin machine was in overdrive trying to cover up the great news about U.S. fossil fuels–but they could not. Trump was on his “A” game yesterday and it showed.
OTHER U.S. REGIONS: US shale firm Apache reports $386 million loss, renewed international focus; NATIONAL: U.S. energy consumption in April 2020 fell to its lowest level in more than 30 years; How America’s shale industry can navigate tough times and emerge resilient; Henry Hub gas forwards turn bullish on tightening US supply-demand fundamentals; INTERNATIONAL: Shell flags production fall into Q3; assets impaired by $16.8 billion.
We love a story about an individual or company that defies conventional wisdom and succeeds by charting its own course separate from the herd. Diversified Gas & Oil (DGO) is one such company. DGO buys up older conventional (and shale) wells in Appalachia, making money off the “long tail” of low production (see 
Radical environmentalists (far outside the mainstream) are making one final push to pressure the Pennsylvania Dept. of Environmental Protection (DEP) to expand an already onerous new regulation it is planning to implement. Last December the DEP’s Environmental Quality Board (EQB) approved new regulations that supposedly will capture every last molecule of stray methane that leaks from shale drilling operations (see 
FirstEnergy is in the middle of an excrement storm. The company’s former subsidiary FirstEnergy Solutions (now called Energy Harbor) allegedly paid $60 million in bribes to Ohio House Speaker Larry Householder and several of his associates to gain their assistance passing the hugely unpopular House Bill 6 (see 
How does one make money in the natural gas market these days when the price of gas is at historic lows? One way is if an investor was fortunate enough to bet the price would go down. Those folks made money. The other way is to…invest in drillers? Yep. Even though low prices hurt drillers, investors still like the looks of what is on the horizon, especially for companies operating in the Marcellus/Utica. Example: The stock price for Range Resources and EQT is up over 30% each this year so far.
Here’s a little known factoid that will be useful for anyone wondering what the price of NGLs (natural gas liquids) will bring in a given market at a given time. The U.S. Energy Information Administration (EIA), our favorite government agency, points out NGLs almost always fetch prices that are “range-bound” between the price of oil on the high end, and the price of natural gas on the low end. Natural gasoline (an NGL) tracks closest the high end and the price of crude oil, while ethane is at the bottom of list closest to the price of methane.
EQT, the country’s largest natural gas-producing company, issued its second-quarter 2020 update yesterday. There was a lot of news coming from the update. First and foremost, CEO Toby Rice (celebrating his one-year anniversary after taking over management of the company) said that the 1.4 billion cubic feet per day (Bcf/d) of gas production previously curtailed (shut-in) starting in May is, as of the beginning of July, fully restored and flowing with no apparent “degradation” in the performance of the shut-in wells. However, it was other remarks–about Equitrans and the Mountain Valley Pipeline (MVP)–that caught our attention.
PennEast Pipeline is a $1.2 billion, 118-mile brand new (greenfield) pipeline project planned between the Wilkes-Barre, PA area and the Trenton, NJ area. The project has faced stiff opposition from nutty Big Green groups and from the Democrats who have seized control of NJ. Because of NJ’s opposition (
What’s happening with New Fortress Energy’s $800 million LNG liquefaction plant in Wyalusing (Bradford County), PA? We recently had an inquiry from a union member/MDN reader wondering whether or not the project has been scrubbed because there is no activity at the site. We have an answer…
CNX Midstream began life as a joint venture between CONSOL Energy (the forerunner to CNX Resources) and Noble Energy, and was called CONE Midstream (“CO” from CONSOL and “NE” from Noble Energy). Noble decided to completely exit the Marcellus/Utica and ended up selling their half of CONE to CNX for $305 million in early 2018 (see