Range Resources Corp., an early pioneer in the Barnett Shale that has since taken its estimable talents to the Marcellus, on Wednesday saw its share price jump almost 20% in early trading after reports surfaced that Royal Dutch Shell plc or another major oil company might make a bid for the company.
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Northeast Spikes Contrast With Near-Flat Quotes
Northeast price spikes had some citygates in the region averaging more than $6 Tuesday amid a generally little-changed cash market. The tropical storm factor, which never was significant anyway, continued to fade into the open Atlantic, but very hot forecasts in many areas remained a constant for gas prices.
Antero Bumps Up Spending for Marcellus, Piceance
To fund increased drilling in core areas of the Marcellus Shale and Piceance Basin, Antero Resources has added $126 million to its capital budget for 2011.
Liquids Production Growth Leads Devon to Strong Earnings
The North American shales have been good to Devon Energy Corp. as evidenced by the company’s strong 3Q2010 earnings revealed this week. The Oklahoma City-based exploration and production (E&P) company said it set new quarterly production records in both its Barnett and Cana-Woodford shale plays.
Market Repeats Leaning to Upside in Mixed Pricing
Friday’s cash trading activity was largely a repeat of that on Thursday: mixed price movement with most points averaging flat or only a few pennies up or down and small gains handily outweighing small losses. Frigid weather outside the South and a five-trading day streak of prior futures advances (which barely got extended by 2.8 cents Friday) were the chief impetus for overall slight firmness.
Industry Briefs
Range Resources said it increased its natural gas hedge position, adding natural gas swaps in 2007 and 2008. The 2007 natural gas swaps average $9.34 per MMBtu, with the 2008 swaps averaging $9.42. To a lesser degree, additional natural gas collars were added in the third and fourth quarters of 2006. “With approximately 80% of Range’s reserves being natural gas, we have locked in outstanding prices on a significant portion of our production for the remainder of 2006 and for all of 2007 and 2008,” said CEO John H. Pinkerton. “With 15% production growth targeted for 2006 and 2007 combined with the attractive hedge prices, we anticipate generating record financial results. Importantly, the increased hedge position will allow us to aggressively pursue our growth strategy while continuing to build our financial strength.”
Report Cites Nation’s Abundant Gas Resource Base; AGA Says Access is the Problem
Despite gas prices hovering near $11 currently and averaging $7.17/MMBtu so far this year (Henry Hub cash bidweek) mainly on fears of a supply shortage, the Potential Gas Committee’s latest report on the nation’s gas resources shows a total available gas resource of 1,308.3 Tcf, or nearly 70 years of gas supply produced near the current annual rate. The problem, according to the American Gas Association (AGA), is accessing that supply.
Fitch Sees Gas Prices Creeping Up Before Stabilizing in 2010
Fitch Ratings analysts said Tuesday they expect natural gas prices to be high over the next few years, averaging $6.25/MMBtu this year and rising by an average 0.6% annually in real terms before stabilizing in 2010. In its spring 2005 forecast on the U.S. wholesale power market, analysts are forecasting gas prices to range from a high of $7.80/MMBtu to $5.50/MMBtu in 2009, then remain in the $5.50 area.
TEPPCO to Expand Jonah Gathering to 1.5 Bcf/d by December
With throughput on the Jonah Gas Gathering System in southwestern Wyoming averaging near capacity at 1 Bcf/d in the fourth quarter of 2004, TEPPCO Partners LP has announced plans for a $122 million expansion project that will loop the system and add about 500 MMcf/d of new capacity by December.
TEPPCO to Expand Jonah Gathering to 1.5 Bcf/d by December
With throughput on the Jonah Gas Gathering System in southwestern Wyoming averaging near capacity at 1 Bcf/d in the fourth quarter of 2004, TEPPCO Partners LP has announced plans for a $122 million expansion project that will loop the system and add about 500 MMcf/d of new capacity by December.