In 2004, Range Resources pioneered the Marcellus Shale in Washington County, Pa. This week, the company signed and closed an agreement to sell a proportionately reduced 1% overriding royalty in its Washington County leases to an undisclosed buyer for gross proceeds of $300 million. Range plans to use the proceeds from the sale to lower its debt by 7%, resulting in an estimated net reduction in 2019 cash flow of about $10 million.
Nine Energy Service plans to beef up its completion tools business with the $493 million acquisition of downhole technology provider Magnum Oil Tools. Nine will acquire Magnum, which does not have any debt, for a combination of about $334 million in cash and 5 million shares of Nine common stock valued at $159 million.
Interior Secretary Ryan Zinke hinted to at least six coastal U.S. coastal states that he will keep their waters out of a looming plan to expand offshore drilling. While those words may have raised hopes for other states with objections to the plan, Zinke said the six states lack enough oil to be included anyway. Those six states are: New Hampshire, Maryland, North Carolina, Maine, Oregon and Washington. The final proposal by the Trump administration is expected later this year.
A massive Royal Dutch Shell natural gas field in northern British Columbia is getting greener. Shell said The Groundbirch Project, located above Canada’s richest shale gas deposit, slashed project emissions by moving its newest gas plant to hydroelectric power. It also replaced diesel with natural gas in drilling. The company said it is now tackling methane with new electric components and a fuel cell trial. Groundbirch will eventually send gas to the Shell-led LNG Canada export terminal approved this month, where it will be cooled for exporting.
2022-10-03 - The U.S. Supreme Court on Oct. 3 declined to hear an appeal by two former Platinum Partners executives of their conviction on charges that they defrauded bondholders of one of the defunct hedge fund’s portfolio companies as they seek a new trial.
2022-10-03 - The U.S. National Labor Relations Board asked an administrative law judge to issue back pay, among other remedies, to the more than 600 workers locked out of their jobs at Exxon Mobil’s Beaumont, Texas, refinery between May 2021 and March 2022.
2022-10-03 - Despite one of the tightest markets in recorded history, Goldman said the reported OPEC+ cut could be justified by the 40% decline in prices from their June peak and enabled by the lack of supply elasticity, given slowing shale activity and exhausted spare capacity.
2022-10-03 - Speaking at Hart Energy’s America’s Natural Gas Conference, East Daley analyst Zach Van Everen predicts gas markets will be oversupplied in the short term but believes exports will eventually drive production for decades.
2022-10-03 - The Blandford Road project in southern England will be the first commercial battery storage asset for Equinor, and the first project realized from the strategic partnership between Equinor and Noriker Power.