EQT may sell “small portion” of royalties from natural gas production

Pittsburgh-based EQT Corp., the largest independent natural gas producer, “is in talks to have an investor take a 1 percent royalty interest in revenue from natural gas production,” the Pittsburgh Business Times reports. The company’s new management team “has been working to cut drilling costs and improve the company’s financial picture” as the domestic shale industry is experiencing sharp declines, according to the article. EQT said during the third-quarter conference call “it was evaluating ways to monetize its interest in natural gas production.” Then-Interim CFO Kyle Derham said, “[w]e are confident this strategy could generate significant proceeds that can be used to de-lever without a significant impact on development returns.” For more, read the full article.

Pennsylvania

Continued low natural gas prices spark new round of impairments

Several oil and gas companies have been “forced to recalculate and reduce the value of their assets to reflect a down market,” as continued low natural gas prices “have been putting a damper on corporate earnings for many months,” the Pittsburgh Post-Gazette reports. CNX Resources Corp. recently “wrote down $46 million in assets in Central Pennsylvania,” according to the article, following a “blockbuster $10 billion impairment by Chevron Corp. last month, more than half of which was attributed to Appalachian oil and gas assets.” EQT Corp, the largest natural gas producer in the country, “is expected to write down between $1.4 billion and $1.8 billion in assets” next month. The wave of impairments means “some oil and gas leases will be allowed to expire without follow-up and some potential drilling locations are now off the table.” For more, read the full article.

Pennsylvania

Cabot to sell stake in Meade Pipeline Company

Houston-based Cabot Oil & Gas Corp. has reached an agreement to sell its 20 percent stake in Meade Pipeline Co. to NextEra Energy Partners for $256 million, the Pittsburgh Business Times reports. Cabot’s regional headquarters is based in Pittsburgh; Meade “carries Marcellus Shale gas on the Atlantic Sunrise in eastern Pennsylvania,” and is “30 percent owner of the Central Penn Line, a 185-mile segment of the Atlantic Sunrise pipeline,” according to the article. The deal is expected to close by the end of this year. For more, read the full article.  

National, Pennsylvania

Rice installs executives at EQT

The Pittsburgh Post-Gazette reports that EQT’s new CEO Toby Rice has appointed a slate of executives from his former company Rice Energy, Inc., including general counsel William Jordan, CIO Tony Duren and CHRO Lesley Evancho. Other key positions have been filled but were not yet named. These executives have been tasked with leading EQT through the transition period and implementing Mr. Rice’s proposed 100-day plan. Read the full story, including market and production goals and Mr. Rice’s thoughts on company culture.

Pennsylvania

Rice and his team are once again in control of EQT

Toby Rice sold Rice Energy Corp. to EQT Corp. in 2017. On Wednesday, July 10, 2019, as reported in the Pittsburgh Post-Gazette, after a nine-month campaign culminating in a shareholder vote, a majority Rice-nominated slate has taken over the board and installed Mr. Rice as CEO. EQT posted disastrous results in 3Q 2018, which is cited as a major catalyst for this change. Plans are under way for the transition and all involved are looking to a successful transformation. Read the full story.

Pennsylvania

Construction begins on critical Ashtabula County pipeline

Construction of the Ohio portion of the Risberg Line has begun, reports the Ashtabula Star Beacon. Once complete, the Risberg Line will flow 55 million cubic feet per day (MMcf/d) of gas from Pennsylvania to the northern tip of Ohio in Ashtabula County. It is expected that the pipeline will help address Ashtabula County’s natural gas needs. The county has suffered from a shortage of natural gas in the past which has impacted its ability to attract certain industries. RH energytrans, the company that will build and own the line, plans to finish construction in early summer. Read the full story.

Ohio, Pennsylvania

Nearly half of U.S. natural gas will come from the Ohio Valley by 2040, expanding development potential

Farm and Dairy reports the results of an IHS Markit study which point to an exponential increase in production from the Marcellus and Utica shale formations. According to the study, Ohio, Pennsylvania and West Virginia will supply nearly half of the nation’s natural gas by 2040. The study also quantifies cost advantages of producing natural gas liquids in the Midwest; projected savings are pushing petrochemical plants to look closely at the region for expansion and construction. Read the full story.

Ohio, Pennsylvania, West Virginia

$86 million Risberg Line project approved for construction

The $86 million Risberg Line project was approved by the Federal Energy Regulatory Commission on Dec. 14, according to Star Beacon. The project will extend the natural gas pipeline by 28 miles through northwest Ashtabula County and is expected to increase job opportunities and tax revenue for the surrounding areas. For more, read the full story.

Ohio, Pennsylvania