February shale gas permits plummet in Pennsylvania as drillers cut spending
The number of new permits for shale gas wells in Pennsylvania dropped 59% in February from the previous month as producers slowed their drilling to stay within tighter budgets for 2019. Several counties that have historically been the most productive showed sharp drops in new permits year over year. Only seven permits were issued in Washington County just south of Pittsburgh, for instance, a 65% drop from February 2018 and an 85% drop from the January, according to March 6 data from the Pennsylvania Department of Environmental Protection.
Ohio shale gas well permits up again in February
Driven largely by a high rate of activity at Ohio's top shale gas producer Ascent Resources, the number of permits for new Utica Shale wells in the state increased 62% in February compared to the same month last year, going from 21 to 34. For the second month in a row, Ascent continued to devote most of its energy to Guernsey County, Ohio, in the liquids-rich portion of the Utica, pulling 11 permits compared to none last year.
Permian drillers temper zeal for growth amid low oil prices, investor caution
Adapting to low oil prices has put many big Permian drillers in the same state of mind: Each is focused on cutting spending, building efficiency and generating free cash flow to reward investors. "What was remarkable to me was how similar the responses were. It's like they were written by the same person," Regina Mayor, an energy expert at KPMG, said of Permian producers' recent earnings calls.
Rimrock lands $200M credit facility to help build its DJ Basin midstream system
Private equity-backed midstream company Rimrock Energy Partners LLC entered into a $200 million senior secured credit facility led by BOK Financial Corp. to help develop its 80-mile natural gas gathering and processing system in the DJ Basin in Colorado. The Energy Spectrum Capital LP-sponsored Rimrock is constructing its Pierce gas gathering and processing system in Weld County, Colo., with plans to extend it by 16 miles east after receiving a long-term acreage dedication from oil and gas producer Confluence Resources LP in February.
Antero's midstream MLPs get shareholder approval for simplification deal
Antero Midstream Partners LP's common unit holders and Antero Midstream GP LP's shareholders approved a simplification deal between the partnerships, bringing the transaction one step closer to completion. About 93.8% of outstanding Antero Midstream Partners common units voted in favor of the planned merger, including 86.8% of outstanding common units held by unit holders other than the partnership's sponsor Antero Resources Corp., the original private equity sponsors, series B holders and affiliates of Antero Midstream Partners' general partner.