Rice Boys Respond to Scorching Letter from EQT Board
Another day, another episode of the ongoing soap opera that is the power struggle to retain (or take over) control of the country’s largest natural gas producer: EQT. Yesterday we told you about current CEO Rob McNally’s bold and gutsy move in adopting a “universal proxy” and about going on offense with a scorching letter written to Toby Rice (see EQT Issues List of Board Nominees; Adopts Universal Proxy Card). Following EQT’s letter, Toby and brother Derek Rice issued a rebuttal letter of their own.
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Several members of the Marcellus Shale industry spoke at a meeting of the Williamsport/Lycoming Chamber of Commerce yesterday, including MDN friend George Stark from Cabot Oil & Gas. George is director of external affairs. At the meeting he said the Marcellus industry has made tremendous strides in the last 10 years and will be around for decades to come. He said, “It’s booming in our area.” George also said Cabot is having trouble filling vacant jobs.
Two Democrat New York State legislators, Senator Jen Metzger and Assemblywoman Nily Rozic, are floating parallel bills that would outright ban any new natural gas-fired electric plants or natural gas pipelines in the state. Really bizarre stuff. They’re calling this lunacy “Freedom from Fossil Fuels.” Want to run a new gas pipeline from the local utility to a new housing development or commercial business park? Forget it. No new gas customer hookups *anywhere* in the state–not just in Westchester County (see 
Events related (or of interest) to the Marcellus, Utica and other Appalachian shales happening in the next 90 or so days. Send your calendar items (listed for free!) to: jim (at) marcellusdrilling.com.
MARCELLUS/UTICA REGION: DRBC lobbies a member state to oppose HB 827 economic justice bill; PA PUC approves gas pipeline expansion plan for Bradford County; NATIONAL: EIA expects less electricity to come from coal this summer as natural gas, renewables rise; 2018 was likely the most profitable year for U.S. oil producers since 2013; Big oil goes big green; INTERNATIONAL: Pieridae: Goldboro LNG unaffected by share price drop.
In the fight to control EQT, it appears like the momentum has just shifted in favor of EQT’s existing management. No more defense, EQT’s management team and board are now on offense. Yesterday the board and CEO Rob McNally released their list of proposed nominees to be voted on at the annual meeting in July. Three longtime members of the existing board including (surprisingly) board chairman Jim Rohr, will be out. Three new members have been named to replace them. Most important, in a bold move, EQT is adopting a “universal proxy card”–something advocated by Toby and Derek Rice in their attempt to replace the board. We explain this important development below…
Chesapeake Energy CEO Doug Lawler continues his quest to transform what used to be the nation’s second largest natural gas producer into an oil company. Yesterday the company issued its first quarter 2019 update. From that update we learn that Chessy will pull money out of its Marcellus and Haynesville shale gas drilling programs, dropping from three to two rigs in the Marcellus and from two to one rigs in the Haynesville, in order to put more money, rigs, time and effort into the company’s Powder River Basin oil drilling program. We liken their pursuit of oil riches to trying to grab St. Elmo’s Fire–it appears, and as soon as you reach to grab it, it’s gone.
MarkWest Energy, now part of MPLX (Marathon Petroleum) operates the nation’s largest cryogenic gas processing plant operation in the country, the Sherwood Complex, in West Virginia (see 
A radical Pennsylvania environmental group called PennEnvironment is pushing a media narrative that a “collection of 88 Republican and Democratic Pennsylvania state legislators” have joined together to introduce and endorse a truly insane plan that would require all (as in 100%) of electricity generated in the Keystone State to come from so-called renewables by 2050–just 30 years from now. It will NEVER happen, but that’s beside the point. Our point is that one named Republican is part of this “bipartisan collection” of 88 leftists. The lone Republican is PA State Sen. Tom Killion from the Philadelphia area.
Huntingdon County, PA landowner Ellen Gerhart, adamantly opposed to the Mariner East 2 pipeline being constructed across her land, tried to block construction on her property. She had her day in court last August and was found guilty of violating a judge’s previous order to stop interfering with construction (see 
Whew, that was close. We’ve had a concern that if Chevron ended up buying Anadarko Petroleum (for Anadarko’s Permian Basin oil assets), it might lead to Chevron pulling back from their drilling program in the Marcellus/Utica (see 
Saudi Arabia is sniffing around the Marcellus Shale. Bloomberg reports that super secret talks are happening between Saudi Aramco (largest oil company in the world, owned by the Saudi government) and Equinor, which until recently was called Statoil. Equinor is majority-owned by the government of Norway. The Saudis are considering “buying a stake” in or possibly a joint venture with Equinor. It seems Norway is hesitant to hop into bed with the Saudis. We don’t blame them.