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NewsLetters

Expo/Industry events for the next few months

South Texas Oilfield Expo
July 29-30, 2015
San Antonio, TX

The 2015 South Texas Oilfield Expo will be held at the Henry B. Gonzalez Convention Center, July 29-30, in San Antonio, TX.

The South Texas Oilfield Expo brings thousands of oilfield buyers and sellers operating in the Eagle Ford Shale together every year to view new technology, network and make their best business deals. Over 1,000 booths and a continuing commitment to creating an industry-exclusive environment focused on deal-making and networking makes the 2015 South Texas Oilfield Expo the largest industry-exclusive Expo serving the Eagle Ford Shale.

http://www.southtexasoilfieldexpo.com/

Shale Insight 2015
September 16-17, 2015
Philadelphia, PA

http://shaleinsight.com/

Midstream PA 2015
October 1, 2015
Penn State

http://midstreampa2015.com/

Utica Summit III
October 13, 2015
Canton, OH

http://www.uticasummit.com/

DUG Eagle Ford + MIDSTREAM Texas
October 25-27
San Antonio, TX

http://www.dugeagleford.com/

Latest facts and a rumor from the Marcellus and Utica Shale

  • Will the Marcellus and Utica bounce back in 2016?  As I talk to people throughout the region, everyone seems to be somewhat optimistic about 2016.  I know more bids are going to more companies which should bode well for more drilling.  The permitting activity seems to be picking up in OH and PA.

    A few people in the industry think the E&P Companies will be hitting the declining curves with some of their wells which will require more drilling.  It appears that a good portion of the drilling will be from existing well pads rather building new ones.

    We’ll continue to speak with people in the industry to see if we can get a better handle on 2016.
     
  • Halliburton – Baker Hughes deal may be in trouble.  According to CNBC, this deal may be in trouble because of anti-trust concerns.  The Justice Department is looking closely at this.  All of the proposed spinoffs which are part of the deal may not be enough to address Justice Department concerns.
     
  • Cabot 2nd Qtr. Update.  Cabot Oil & Gas Corporation (NYSE:COG) reported its financial and operating results for the second quarter of 2015. “Despite our strategic decision to curtail Marcellus volumes in the second quarter due to the adverse price environment, Cabot still generated production growth and reduced unit costs year-over-year,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “Our top-tier Marcellus asset affords us the ability to reduce our gross production volumes by approximately 500 million cubic feet (Mmcf) per day and still report positive normalized results.”

    Second Quarter 2015 Financial Results

    Equivalent production in the second quarter of 2015 was 138.0 billion cubic feet equivalent (Bcfe), consisting of 128.4 billion cubic feet (Bcf) of natural gas and 1.6 million barrels (Mmbbls) of liquids (crude oil/condensate/natural gas liquids). These figures represent increases of 8 percent, 5 percent, and 68 percent, respectively, compared to the second quarter of 2014.

    Cash flow from operations in the second quarter of 2015 was $171.2 million, compared to $329.6 million in the second quarter of 2014. Discretionary cash flow in the second quarter of 2015 was $183.2 million, compared to $332.3 million in the second quarter of 2014. Net loss in the second quarter of 2015 was $27.5 million, or $0.07 per share, compared to net income of $118.4 million, or $0.28 per share, in the second quarter of 2014.

    Marcellus Shale

    During the second quarter of 2015, the Company averaged 1,341 Mmcf per day of net Marcellus production (1,575 gross operated Mmcf per day), an increase of 7 percent over the prior year’s comparable quarter. As previously announced, the Company curtailed a significant amount of its production volumes in the second quarter due to weakness in regional natural gas prices throughout Appalachia. Cabot does not anticipate an improvement in price realizations during the third quarter and as a result has initiated third quarter Marcellus gross production guidance at 1,550 to 1,600 Mmcf per day, in line with its guidance for the second quarter.

    Cabot is currently operating three rigs in the Marcellus Shale and plans to remain at this level for the remainder of the year.

    Eagle Ford Shale

    Cabot’s net production in the Eagle Ford Shale during the second quarter of 2015 was 17,889 barrels of oil equivalent (Boe) per day, an increase of 74 percent over the prior year’s comparable quarter.

    Cabot is currently operating one rig in the Eagle Ford Shale and plans to remain at this level for the remainder of the year.
     
  • PA Pipe Line Task Force moving forward.  A group of government, industry and environmental leaders has four months to write the first draft of recommendations on how to streamline natural gas pipeline development in Pennsylvania so that it boosts business without ruining land and water.

    “Our challenge is to find the balance,” state Department of Environmental Protection Secretary John Quigley said Wednesday during the first meeting of a pipeline infrastructure task force he convened in Harrisburg at the direction of Gov. Tom Wolf.

    Joking that the task force looks like “the world's biggest committee” with 48 members and 110 additional participants in 12 working groups, Quigley laid out goals and a timeline that includes a November deadline for a first draft.

    We hope to have members of the task force at Midstream PA 2015.  Look for details in future newsletters.
     
  • EQT 2nd Qtr. Update.  A 40 percent drop in natural gas prices is eroding profits at EQT Corp. despite continued increases in production.

    Net income at the Downtown-based company fell by 95 percent to $5.5 million, or 4 cents per share, during the quarter that ended June 30, compared to $110.9 million, or 73 cents per share, during the same period last year, EQT announced early Thursday.

    The first major Marcellus shale gas producer to report earnings for the second quarter showed results of a trend in the market that began late last fall. Companies continue to pull more gas from shale as prices drop, feeding a glut that is worsening with low demand from utilities and a shortage of pipelines to move the gas to markets.

    EQT, Pennsylvania's fifth largest shale gas producer by volume, boosted production by a third over the same period last year while drilling 48 Marcellus and Upper Devonian wells during the quarter. Yet operating revenue slid by more than 17 percent to $433.2 million. A boost in revenue in its midstream pipeline business kept it from dropping further.
     
  • Anadarko bringing in a rig.  It looks like Anadarko will be bringing another rig sometime in the fall.  (RUMOR)
     
  • Noble completes Rosetta deal.  Houston-based Noble Energy Inc., a global independent oil and natural gas production company with operations in the Marcellus Shale, has acquired Rosetta Resources Inc. as a subsidiary.

    Rosetta, an independent oil and gas exploration and development company, is based also in Houston and primarily operates in the Eagle Ford shale and Permian Basin.

    Noble Energy already operates in the Marcellus Shale, Eagle Ford Shale, DJ Basin and Permian Basin, in addition to its offshore operations in the U.S. Gulf of Mexico, Eastern Mediterranean and West Africa. But the acquisition adds another 50,000 net acres in the Eagle Ford Shale and 56,000 net acres in the Permian.

    The company also expects the acquisition to bring “substantial operational synergies” across its combined U.S. onshore portfolio.
     
  • Another gas terminal going into Northern PA.  A Camp Hill firm is proceeding with plans for a second natural gas terminal to serve bulk customers.

    The permitting process is under way for a terminal on a 10-acre site near Milesburg in Centre County, Yves E. Pollart, executive vice president of engineering and development for Compass Natural Gas, said Thursday.

    Construction of its Quaker Terminal, along Route 87 north of Montoursville in Lycoming County, is 20 percent complete, he said. That $13 million facility is scheduled to be operational in October, he said.

    The Bald Eagle terminal in Centre County, which will be larger and cost upwards of $20 million, is expected to be completed next spring, he said.

    Compass plans to have six of these terminals in Pennsylvania to make Marcellus Shale gas available to locations where there are no pipelines. The concept has been called a mobile pipeline.

    Its reason for building these terminals is to get Pennsylvania gas to Pennsylvania customers that are not close to a pipeline, Pollart explained. Much of the gas from Pennsylvania wells is going out of state, he said.

    At each terminal, gas will be dried to remove any moisture, compressed to 3,600 pounds-per-square-inch and delivered to bulk customers in carbon filter composite cylinders inside specially designed truck trailers Compass will own.

    Compass is expanding its sales force and meeting with potential customers throughout central Pennsylvania, Pollart said. The reception has been good, he said.

    Each terminal is expected to serve an approximate 50-mile radius with a half dozen trucks at each facility, he said.

Visit our Blog for daily updates on what’s happening in the oil & gas industry

http://www.shaledirectories.com/blog/

Rig Count

  • Baker Hughes Rigs count for the week July 24, 2015
     
  • PA
    • Marcellus 41 up 1
    • Utica 3 unchanged
  • Ohio
    • Utica 20 up 1
  • WV
    • Marcellus 18 unchanged
  • TX
    • Eagle Ford – 100 up 2
    • Permian Basin  196 up 2
  • NM
    • Permian Basin – 49 up 1
  • ND
    • Williston – 69 up 1
  • MT
    • Williston – 1 unchanged
  • CO
    • Niobrara –29 unchanged
       
  • TOTAL U.S. Rig Count 876 up 19

PA Permits for July 16, to July 23 2015

       County                Township            E&P Companies

1.    Allegheny             Jefferson Hills        EQT
2.    Allegheny             Jefferson Hills        EQT
3.    Allegheny             Jefferson Hills        EQT
4.    Allegheny             Jefferson Hills        EQT
5.    Allegheny             Jefferson Hills        EQT
6.    Allegheny             Jefferson Hills        EQT
7.    Allegheny             Jefferson Hills        EQT
8.    Allegheny             Jefferson Hills        EQT
9.    Fayette                Luzerne                Chevron
10.    Fayette              Luzerne                Chevron
11.    Fayette              Luzerne                Chevron
12.    Fayette              Luzerne                Chevron
13.    Fayette              Luzerne                Chevron
14.    Greene              Jackson                Vantage
15.    Greene              Jackson                Vantage
16.    Washington       Jefferson                Range
17.    Washington       Jefferson                Range
18.    Washington       Jefferson                Range

OH Permits – week ending July 11, 2015

       County              Township           E&P Companies

1.    Carroll                Orange                Chesapeake
2.    Carroll                Orange                Chesapeake
3.    Carroll                Orange                Chesapeake
4.    Carroll                Orange                Chesapeake
5.    Carroll                Orange                Chesapeake
6.    Carroll                Orange                Chesapeake


Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson vera@shaledirectories.com 570.337.7149

 

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