Facts & Rumors # 586
February 22, 2025
Trump Vows to Revive Constitution Pipeline. Trump vows to revive Constitution Pipeline to lower energy prices in Northeast. Pipeline Technology Journal. President Donald Trump promised to revive the long-stalled Constitution Pipeline, which would transport natural gas from Pennsylvania to New York, saying the project could reduce energy prices in the northeastern United States by up to 70%. “We are going to get this done, and once we start construction, we’re looking at anywhere from nine to 12 months, if you can believe it,” Trump said Friday during a press briefing after signing an executive order on energy in the Oval Office.
Trump Takes Control of FERC and More. Thanks, MDN. Two days ago, President Trump signed yet another executive order, this one called “Ensuring Accountability for All Agencies.” We’ve lost count of how many he’s signed! This latest EO is a really, hairy, big deal. This EO gives the president sweeping control over the budgets, policies, and regulations of independent U.S. agencies that oversee the energy sector, financial markets, trade, and transportation. Agencies like the Federal Energy Regulatory Commission (FERC) and Securities and Exchange Commission (SEC). Predictably, the left is shouting, “Dictator!” They are in full meltdown mode. The right is arguing the 50+ “independent” agencies created by Congress (but nominally under the Executive Branch) are an unelected bureaucracy not accountable to anyone—not to the President, not to Congress, and not to the courts. If this EO stands, it will fundamentally remake our federal government. That’s not hyperbole.
Antero to Drill 50-55 and Spend $100 Million in 2025. Thanks, MDN. Antero Resources, which is 100% focused on the Marcellus/Utica with over 500,000 net acres under lease (and the largest M-U driller in West Virginia), issued its fourth quarter 2024 update last week. The company reports net production in 4Q24 averaged 3.43 Bcfe/d, up ever-so-slightly from 3.42 Bcfe/d in 4Q23. Natural gas production averaged 2.1 Bcf/d, a 7% decrease from the same period in 2023. Liquids (NGL) production averaged 217 MBbl/d, a 14% increase from the year-ago period. A little less gas, a little more liquid. Antero achieved a net income of $150 million and adjusted net income of $181 million. Additionally, the company realized a 27% reduction in drilling and completion capital expenditures compared to the prior year.
Blackstone Looks to Sell Olympus. Thanks, MDN. Huntley & Huntley Energy Exploration (HHEX), a shale driller headquartered in Southpointe (Washington County), PA, that leases ~100,000 acres and drills in the Pittsburgh suburbs, was founded in 2012. The company renamed itself to Olympus Energy in 2019 (see PA Driller HHEX Renames Itself Olympus Energy). Olympus is majority-owned by private equity firm Blackstone. Bloomberg reports, based on anonymous sources, that Blackstone is investigating a sale of Olympus, looking to get $2 billion.
EU Wants More U.S. NatGas. EU seeks more U.S. gas, renewable energy to replace Russian supplies. Reuters. The European Union will seek more gas from countries including the U.S. to replace Russian supplies, and expand renewable energy faster to cut its overall reliance on the fuel, the EU’s energy commissioner has said. The EU has pledged to quit Russian fossil fuels by 2027 in response to Moscow’s 2022 invasion of Ukraine. While Russian pipeline gas deliveries have plunged, the EU increased its imports of Russian liquefied natural gas last year.
Record LNG to Europe & Asia. Record U.S. LNG exports may give relief to buyers in Europe, Asia. Bloomberg. US liquefied natural gas exports have extended a record-breaking run as new projects increased production, a trend that could help to ease high prices in Europe and Asia. Pipeline gas flows to LNG export plants climbed to 15.7 billion cubic feet on Tuesday, according to data from BloombergNEF. That’s an all-time high and almost 20% more than a year ago. Higher exports are cementing the US as the world’s biggest supplier of the power plant and heating fuel, with output poised to roughly double by the end of the decade. Europe, in particular, has turned to American LNG to help replace the loss of Russian pipeline gas since the 2022 invasion of Ukraine.
Trump Tax Cuts for O&G Producers Could Lead to Lower Oil Prices. Oil Price. President Trump plans to work with Republicans to implement tax cuts for oil and gas producers, allowing them to expense 100% of capital spending. The proposed budget bill includes substantial tax cuts over the next decade, aiming to boost the energy industry and the overall economy. Trump’s policies, such as easing restrictions on LNG exports and potentially ending the Ukraine war, are expected to impact global oil prices and production.
U.S. EPA Grants West Virginia Authority to Oversee carbon Capture. Reuters. The U.S. Environmental Protection Agency on Tuesday formally gave West Virginia authority to oversee carbon capture projects in the state, the fourth state granted such ability. The agency signed a final rule granting primary enforcement authority, known as primacy, to West Virginia to permit so-called Class VI wells in order to speed up the approvals and advance the development of massive carbon sequestration projects.
Natural Gas, Oil Industry Activity Drives Benefits in West Virginia. WV News. West Virginia natural gas and oil production increased 14 and 26 percent, respectfully, in 2023, according to the Gas and Oil Association of West Virginia (GO-WV)’s annual Gas Facts report. The report, compiled annually using industry and government data, reaffirms the state’s critical role in meeting rising energy demand while maintaining U.S. energy security.
Diamondback Energy to Acquire Double Eagle. Wall Street Journal. Diamondback Energy FANG 0.53%increase; green up pointing triangle agreed to acquire certain subsidiaries of Double Eagle and accelerate development of the Midland Basin, confirming a prior report in The Wall Street Journal. The oil and natural gas company reached an agreement with Double Eagle in exchange for 6.9 million shares of its common stock and $3 billion in cash. As part of the agreement, Diamondback and Double Eagle have agreed to accelerate development on a portion of Diamondback’s non-core southern Midland Basin acreage.
U.S. Gives Venture Global OK to Increase LNG Capacity. US regulators approve Venture Global increase in Plaquemines LNG capacity, exports. Reuters. U.S. federal regulators on Wednesday gave Venture Global LNG permission to increase the export capacity of its Plaquemines, Louisiana, LNG plant. Regulators in a statement said they had approved the plant increasing production capacity to 27.2 million metric tons per year of the super chilled gas, up from 24 million tons. The capacity increase means the second largest LNG exporter in the United States will be able to grow overseas shipments from Plaquemines by about 13%, strengthening the U.S. as the world’s largest exporter of the fuel.
PJM Report: PA in Desperate Need of More Gas-Fired Power Plants. Thanks, MDN. According to a recent report from PJM Interconnection, the manager of the electric grid in all or parts of 13 states plus D.C., three electric transmission zones that are wholly or partly in Pennsylvania are expected to see sharp increases in power demand from current and new data centers in the next few years. For all three zones, PJM says the increase in demand will mostly come from existing and planned new data centers. The solution? Build more Marcellus-fired power plants to meet the demand.
Shapiro Blocking Gas Power Plants. PA Gov.’s carbon tax plan for gas power blocking new projects. Marcellus Drilling News. PJM’s new plan to change which new power plants can connect to the grid first *favors* adding natural gas-fired power over other types of power like unreliable solar and wind. The problem is that new gas-fired power plants that will come to the front of the line in PJM states will not be built in Pennsylvania but in other states like Ohio and West Virginia.
Feds Approve Deepwater Export Terminal in TX. Feds approve another deepwater oil export terminal off Texas coast. Odessa American. The Trump administration last week approved plans for a second deepwater oil loading terminal off the Texas coast, opening another door for continued long-term growth in American crude production and exports.
EQT 4th Quarter Results. EQT Corporation (NYSE: EQT) today announced financial and operational results for the fourth quarter and full year 2024 as well as financial and operational guidance for 2025.
Fourth Quarter and Recent Highlights:
- Sales volume of 605 Bcfe, at the high-end of guidance driven by continued operational efficiency gains and strong well performance, despite 27 Bcfe of total net curtailments
- Capital expenditures of $583 million, 7% below the low-end of guidance, benefiting from efficiency gains and lower-than-expected midstream spending
- Differential $0.13 per Mcf tighter than mid-point of guidance as tactical curtailments maximize value without sacrificing operational efficiencies
- Total per unit operating costs of $1.07 per Mcfe; at the low-end of guidance driven by production outperformance and lower-than expected LOE and SG&A expense
- Net cash provided by operating activities of $756 million; generated $588 million of free cash flow(1)
- Closed on non-operated asset sale and midstream joint venture transaction, receiving proceeds of ~$4.7 billion, net of certain transaction fees and expenses
- Exited the quarter with $9.3 billion total debt and $9.1 billion of net debt, (1) inclusive of ~$475 million of working capital usage, which is expected to reverse as pricing stabilizes in 2025
- Equitrans integration 90% complete; actions to date have de-risked ~85% of base synergies, while ~35% of upside synergies have been de-risked given faster-than-expected benefits from compression investments
- Year-end 2024 proved reserves totaled 26.3 Tcfe, flat year-over-year when normalizing for the impact of non-operated asset sales despite SEC price deck dropping toward $2 per MMBtu, underscoring economic resiliency of world-class, low-cost Appalachian reserve base
2025 Outlook Highlights:
- Initiated 2025 production guidance of 2,175 – 2,275 Bcfe, 125 Bcfe above prior expectations due to strong well performance and benefits from compression investments
- Initiated 2025 maintenance capital guidance of $1,950 – $2,120 million and growth capital of $350 – $380 million; reserve development capital guidance ~$200 million lower year-over-year reflecting continued efficiency gains and benefits from compression investments
- Planning to drop from 3 to 2 frac crews at the end of first quarter 2025, several months ahead of prior plan due to further completion efficiency gains
- Projecting ~$2.6 billion and ~$3.3 billion of free cash flow attributable to EQT(1,2)in 2025 and 2026, respectively, at recent strip pricing
- Expect to exit 2025 with ~$7 billion of net debt(1)at recent strip pricing, well ahead of $7.5 billion debt target
PA February 10, to February 20, 2025
County Township E&P Companies
1. Armstrong Boggs Snyder Bros.
2. Armstrong Boggs Snyder Bros.
3. Armstrong Boggs Snyder Bros.
4. Armstrong Boggs Snyder Bros.
5. Armstrong Boggs Snyder Bros.
6. Armstrong North Buffalo PennEnergy
7. Armstrong North Buffalo PennEnergy
8. Armstrong North Buffalo PennEnergy
9. Armstrong North Buffalo PennEnergy
10. Armstrong North Buffalo PennEnergy
11. Armstrong North Buffalo PennEnergy
12. Armstrong North Buffalo PennEnergy
13. Indiana Armstrong INR OPR
14. Sullivan Elkland Chesapeake
15. Sullivan Elkland Chesapeake
16. Tioga Charleston Seneca
17. Tioga Delmar Seneca
18. Tioga Delmar Seneca
19. Tioga Tioga JKLM Energy
20. Washington Robinson Range
21. Washington Robinson Range
22. Washington Robinson Range
23. Washington Robinson Range
OH February 9, to February 17, 2025
County Township E&P Companies
1. NO NEW PERMITS
WV Permits February 10 to February 14, 2025
1. Doddridge Antero
2. Doddridge Antero
3. Doddridge Antero
4. Doddridge Antero
5. Doddridge Antero
6. Tyler Antero
7. Tyler Antero
8. Tyler Antero
9. Tyler Antero
10. Wetzel EQT
11. Wetzel EQT
12. Wetzel EQT
13. Wetzel EQT
14. Wetzel EQT
15. Wetzel EQT
16. Wetzel EQT
17. Wetzel Antero
18. Wetzel Antero
19. Wetzel Antero
20. Wetzel Antero
