Shale Gas News – January 4, 2020

Bill desRosiers
External Affairs Coordinator, Cabot Oil & Gas

The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM and Sundays on YesFM, talked about big oil, EQT, TETCO pipeline and much more last week.

The Shale Gas News has grown again; welcome Gem 104 as our FOURTH station! Gem 104 helps to solidify the Shale Gas News coverage in an important Marcellus region, PA’s northern tier. The Shale Gas News is now broadcasting in Bradford, Lackawanna, Lancaster, Lebanon, Luzerne, Lycoming, Pike, Sullivan, Susquehanna, Tioga and Wayne Counties, as well as in greater central PA. The Shale Gas News is aired on Saturday or Sunday depending on the station.

Every Saturday Rusty Fender and I host a morning radio show to discuss all things natural gas. We have been playing some of the interviews from the Think About Energy briefing in State College.  Today we are playing the interview from Mike Narcavage of Southwestern Energy.

Shale Gas News

The Shale Gas News, typically, is broadcast live. On the January 4th show (click above), we covered the following new territory (see news excerpts below):

  • Bigger oil looks set to have its day in US shale.  The shale energy revolution was not a feat of Big Oil. Independent exploration and production companies run by little-known executives fracked their way to a stunning rise in US oil and gas output over the past decade. Big — or at least bigger — oil is set to have its day in US shale, however. Conditions suggest that E&P M&A will loom large in the early 2020s. A fragmented production system will fuse into bigger pieces.
  • Feeding innovation better than barring fossil fuels. The two most left-leaning presidential candidates, Elizabeth Warren and Bernie Sanders, seem to think that a ban on fracking would help solve the climate crisis. Hydraulic fracturing is a process that has enabled a revolution in the U.S. production of oil and especially natural gas.  Natural gas emits half as much of the planet-warming gas carbon dioxide as coal.
  • 3 TETCO Pipelines in KY Closed Indefinitely, Feds Order Repairs. Last Friday the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued their preliminary findings on the explosion of the Texas Eastern Pipeline Company (TETCO) pipeline explosion in Lincoln County, Kentucky–an explosion that killed one and sent six to the hospital. PHMSA also issued a “corrective action order” on Friday that requires TETCO to keep Line 15, where the explosion occurred, and Lines 10 and 25 (located next to Line 15), offline until further notice. Indefinitely.
  • Man Killed in Accident at Hilcorp Well Pad in Lawrence County, PA. An Indiana County, PA man was working at a Hilcorp drill pad in North Beaver Township (Lawrence County), PA, helping to load “large sections of steel pipeline and drilling equipment” onto a truck when the load became unstable and a large pipe fell from the truck and struck/killed the man. Leonard Clair Long, Jr., 60 years old, died at the scene. He worked for Hilcorp subcontractor Ziegenfuss Drilling.
  • EQT 3Q – $1.5B in Assets for Sale, Including OH Utica, Equitrans. EQT, the largest natural gas producing company in the U.S., issued its third quarter update yesterday–the first such update since Toby Rice took over as CEO of the company in July. There was a LOT of news coming out of yesterday’s update and conference call. Perhaps the biggest news is that EQT plans to whittle down its outstanding debt by $1.5 billion by selling its stake in Equitrans (formerly EQT Midstream), and by selling “noncore” assets outside of its wet gas operating area. That is, EQT is looking to sell its assets in southern West Virginia, Ohio and central Pennsylvania.
  • Toby Rice, EQT’s New CEO, is NOT Cleaning House re Top Management. The clock is now ticking for Toby and Derek Rice who have made big promises about the future of the company they just seized control of (EQT). The Rice boys have a “100 day plan” they have already begun to implement. During the proxy fight to control EQT’s board, and ultimately its management team, Toby Rice threw some sharp barbs including talk that EQT’s existing management was not up to the task. The Rice boys said so, their board nominees said so, heck, Institutional Shareholder Services (ISS) said so too. There will be change (i.e. personnel change) at the “operational level” said ISS. But apparently that change only extended to two people: EQT’s (now former) CEO Robert McNally, and EQT’s (now former) top attorney, Jonathan Lushko–who were shown the door.

The Shale Gas News sponsored by Linde Corporation

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