Facts & Rumors # 597
May 10, 2025
Coterra Confirms Constitution Pipeline Talks. Coterra confirms Constitution pipe reactivation talks underway. Hart Energy. Marcellus Shale gas producer Coterra Energy confirmed they are part of talks currently underway to resume plans to build the Constitution pipeline that would alleviate takeaway constraints north of Pennsylvania. The 124-mile line was to originate from Coterra property in Susquehanna County in northeastern Pennsylvania, terminating in Schoharie County, New York, where it was to connect with existing gas infrastructure.
Drilling Moving to NE OH. Encino is drilling in Mahoning County, OH. In reviewing last weeks permits in Ohio, I saw that Encino was drilling in Ellsworth Township, Mahoning County. This surprised me because I never saw any permits for Mahoning County. Way back early in the Shale Play, BP leased land in Mahoning County, but ended up leaving after a couple of years. It will be interesting to see if Encino secures more permits to drill in Mahoning County and will it expand into Portage and Trumbull counties.
U.S. Oil Production Peaked. U.S. oil production has likely peaked and will start to decline due to price plunge, Diamondback CEO warns. CNBC. U.S. onshore oil production has likely peaked and will start to decline due to the recent plunge in crude prices, jeopardizing the nation’s position as the world’s largest fossil fuel producer and its energy security, the CEO of Diamondback Energy told shareholders in a letter this week. Midland Reporter-Telegram also reports.
Why the Peak Shale Oil Predictions May Be Premature — Again. Bloomberg. The Petroleum Museum in Midland, Texas, houses a display of headlines and quotes from news outlets and pundits who, over many years, made premature predictions for peak US oil production. Is it time to add another story to that list? The specter of peak shale is the talk of the market this week after Diamondback Energy Inc.’s boss told US onshore output will start declining this quarter under pressure from lower crude prices.
Record March Production Kicks Off Projected Boom in U.S. LNG Exports. NTD. Surging global demand for natural gas and the buildout of a new Louisiana export terminal highlight a record-setting March for United States gas producers, according to London Stock Exchange Group data. In March, U.S. producers exported nearly 9.25 percent more liquefied natural gas (LNG) than they did in December 2024, surpassing the previous export record set less than three months ago.
LNG Exports Reach Record High in April. U.S. exports of natural gas liquids touch record high in April. Reuters. U.S. exports of natural gas liquids touched a record high in April, even as a trade war between the U.S. and China cut shipments to the top buyer, ship tracking data showed. The recent trade developments have threatened U.S. exports of natural gas liquids (NGLs), such as ethane, butane and propane, used to make plastics and chemicals as well as for heating and cooking.
U.S. Diplomat: LNG Sales Crucial to Fill Void of ‘Unreliable’ Russia. E&E News. U.S. exports of liquefied natural gas have been a “lifesaver” to Europe following Russia’s invasion of Ukraine more than three years ago, one of the State Department’s top energy diplomats said Thursday. Russia has “proved itself to be a completely unreliable supplier” of gas and has weaponized its energy, said Laura Lochman, acting assistant secretary for the department’s Bureau of Energy Resources, at an event Thursday in Washington organized by the LNG Allies trade group.
Permian Resources to Acquire APA Delaware Basin Assets, Permian Resources to Acquire APA Delaware Basin Assets for $608MM Midland, Texas-based oil and gas developer Permian Resources expects the acquisition to add about 12,000 boed in Q2.
Image by Alexey Zakirov via iStock
Permian Resources Corp. has signed a deal to buy New Mexico acreage with an expected second-quarter production of about 12,000 barrels of oil equivalent a day from APA Corp. for $608 million.
The agreement will give the Midland, Texas-based oil and gas developer 13,320 net acres and 8,700 net royalty acres in the northern part of the Delaware Basin, a Permian sub-basin. The acreage would contribute over 100 gross operated locations stretching 2 miles that “immediately compete for capital”, Permian Resources said in its quarterly report. Closure is expected by next month.
China Halts U.S. Oil Imports. China halts imports of U.S. oil in negative sign for shale drillers. Rigzone. China halted purchases of US crude in March as trade tensions between the two countries ramped up, casting a shadow over demand for oil produced from American shale formations. The lack of such purchases by the world’s largest oil buyer compares with imports of 149,000 barrels of American crude a day in February, according to data from the US Census.
New Exxon Proppant Tech Enhances Permian Basin Well Recovery. Hart Energy. Exxon Mobil is leveraging its scale and engineering prowess to boost Permian Basin production. The U.S. supermajor is seeing an up to 15% uplift in EURs from Permian wells completed with lightweight proppant technology designed in-house by Exxon engineers.
Texas Company Pursues Fracking Wastewater Cleanup for Agriculture Amid Drought. Environmental Health News. Texas Pacific Water Resources (TPWR) has developed a treatment process to clean fracking wastewater, or “produced water,” so it can be reused for agricultural purposes; tests showed no contaminants in treated soil or plants. The state’s growing population, climate stress, and aging infrastructure have created urgent water shortages, prompting both legislative funding and private innovation like TPWR’s.
First Quarter Financials
Coterra 1st Quarter Financials. American shale producer Coterra Energy reported this week a nearly 50% jump in first quarter net income, but said it would lower its annual CAPEX budget due to economic uncertainty.
The Houston-based company, formed by the merger of Cabot Oil & Gas and Cimarex Energy, also stated it was moving to a more natural gas-centered operation, and reducing its oil activities.
“As our industry faces macroeconomic uncertainty and oil price headwinds, we believe it is prudent to reduce oil-directed activity at this time,” said Coterra CEO Tom Jorden.
Net income rose to $516 million, or 68 cents per share, during the first quarter, compared with $352 million, or 47 cents per share, a year ago. Operating revenue reached $1.90 billion, up from $1.43 billion a year ago.
The company adjusted its 2025 CAPEX budget to a range of $2.0 billion to $2.3 billion, down from its previous forecast of $2.1 billion to $2.4 billion.
It plans to operate seven rigs in the Permian Basin during the second half of the year, compared to earlier plans to run 10 rigs.
Coterra added two gas-focused rigs in its Marcellus Shale holdings in northeast Pennsylvania in April and may keep this activity running for the remainder of 2025.
The company’s first-quarter results were driven by higher production in the Permian and Anadarko basins, though these gains were partially offset by weaker oil prices.
Total first-quarter production companywide rose to 746,800 Boe/d) from 686,100 Boe/d one year ago. Oil production rose to 141,200 Bpd, from 102,500 Bpd one year ago, while natural gas production increased to 3.04 Bcf/d from 2.96 Bcf/d. Roughly 73% of all gas production came from the Marcellus.
EOG Resources 1st Quarter Financial. EOG Resources, which controls 460,000 net acres in the Utica Shale play primarily in eastern Ohio, reported first-quarter net income, revenue and net cash from operations fell from a year ago, even as daily production increased.
The Houston-based E&P company also lowered its capital expenditures during the three months ended March 31, compared to year-ago totals, and plans to cut Capex by $200 million for the year due to tariff-related talks.
“EOG had a strong start to the year, with oil and total volumes, cash operating costs, and DD&A (Depreciation, Depletion and Amortization) better than expected,” EOG Chairman and CEO Ezra Yacob said, in a statement.
More than 90% of EOG’s Utica holdings are held by production with minimal drilling commitments, with 100% minerals ownership across roughly 135,000 net acres, which enhances returns.
The product mix for EOG in the Utica averages between 60% and 70% liquids, the company said.
EOG recorded higher crude oil, natural gas, and natural gas liquids (NGL) prices in the first quarter compared to the final quarter of 2024.
Crude oil and condensate production during the quarter totaled 502,100 barrels per day, up 3% from 487,400 Bpd one year ago. NGL production reached 241,700 Bpd, a 4.3% increase from the year-ago quarter.
First-quarter natural gas production jumped nearly 12%, to 2.08 billion cubic feet per day, up from 1.86 Bcf/d during the first three months of 2024.
“The company’s financial position provides EOG the ability to return greater than 100% of annual free cash flow in the near term,” Yacob said.
EOG said it expects to maintain oil production at first-quarter 2025 levels for the rest of the year and deliver full-year oil production growth of 2% and total production growth of 5%.
Gulfport 1st. Quarter Financials. Stating its first-quarter financial performance exceeded internal expectations, Gulfport Energy is readjusting its focus more to its dry gas operations in Utica Shale holdings in southeast Ohio.
Specifically, Gulfport sees its with natural gas production increasing roughly 20% by the fourth quarter of 2025 compared to first quarter production. First-quarter companywide gas production totaled 837.82 million cubic feet per day, compared to 973.56 MMcf/d one year earlier.
From its Utica and Marcellus Shale play holdings in Ohio, gas production fell to 686.94 MMcf/d, from 811.36 MMcf/d in the first quarter of 2024. Gulfport considers itself primarily a “gas company,” with 89% of all production gas.
“As planned, we anticipate a significant increase in production over the coming quarters, currently forecasting our average daily natural gas production to increase approximately 20% by fourth quarter 2025 when compared to first quarter 2025 levels,” said Gulfport President and CEO John Reinhart.
“We remain committed to developing our assets in a responsible manner and, given the current commodity price dynamic, we plan to strategically shift a portion of our drilling activity in late 2025 toward dry gas Utica development to maximize returns and position the company favorably for an improving natural gas environment.”
First-quarter revenue fell more than 30% year-over-year, to $197 million from $283 million, while a net loss was pegged at $464,000, down from net income of $52 million. Per diluted share was a loss of seven cents, compared to a positive $2.39 one year earlier.
Gulfport produced total net liquids of 15.2 MBbl per day, an increase of 14% over first-quarter 2024.
The Oklahoma City-based E&P operates in the aforementioned Utica-Marcelus in Ohio, with 228,000 reservoir acres, and the Anadarko Basin in Oklahoma. With roughly 73,000 net reservoir acres.
April DUC’s Report. The number of drilled, but uncompleted wells in four of the US’s most prolific shale plays dropped substantially year-over-year in April, just-released federal government data shows.
The Energy Information Administration’s latest drilling figures contained in May’s Short Term Energy Outlook (STEO) reveals a year-over-year drop in so-called DUCs in Appalachia (the Marcellus and Utica Shale plays), the Bakken, the Eagle Ford and the Permian Basin.
Last month, 2,302 DUCs were in place in the four areas, compared to 2,747 in April 2024. Last month’s figure was up from February 2025’s 2,295, STEO reported.
The Eagle Ford took top honors for seeing the most DUCs from a year ago completed in time for last month’s EIA survey. The play’s number of drilled, but uncompleted wells fell by 164, 36.7%, to 283 from 447. The latest total was down four wells from March 2025’s 287 total.
The Bakken year-over-year lost 107 DUCs, finishing last month at 306, down more than 25% from 413 one year ago. The Bakken’s latest total was down 13 wells from February’s 319.
Close behind the Bakken in completed DUCs was the Permian, which finished last month with 975 drilled but uncompleted wells. That was down 106 wells, or 9.8%, from 1,081 one year ago. In March of this year, the number of DUCs in the Permian stood at 952.
Appalachia’s total of DUCs dropped by 68 wells, 8.4%, to 738 from 806. The Marcellus and Utica gained one DUC from March.
The next STEO is scheduled to be released June 10, EIA said.
PA April 28, to May 8, 2025
County Township E&P Companies
1. Butler Jackson PennEnergy
2. Butler Jackson PennEnergy
3. Lycoming Cogan House SWN
4. Lycoming Cogan House SWN
5. Susquehanna Auburn Coterra
6. Tioga Delmar Seneca
7. Tioga Delmar Seneca
8. Tioga Delmar Seneca
9. Tioga Delmar Seneca
10. Washington North Strabene Rice
OH April 27, to May 3, 2025
County Township E&P Companies
1. Carroll Center EAP OHIO
2. Carroll Center EAP OHIO
3. Carroll Center EAP OHIO
4. Carroll Center EAP OHIO
5. Carroll Center EAP OHIO
6. Harrison Cadiz Ascent
7. Harrison Cadiz Ascent
8. Harrison Cadiz Ascent
9. Jefferson Wells Ascent
10. Jefferson Wells Ascent
WV April 28, to May 2, 2025
1. NO NEW PERMITS
