Portland, OR-based NW Natural has accelerated a utility rate decrease for its distribution utility customers in Oregon and Washington, asking regulators in both states to approve rate decreases totaling $39 million. Separately last Friday, CEO Gregg Kantor also reported during a 1Q2012 earnings conference call that the company’s joint venture drilling program with a unit of Encana Corp. and a merchant gas storage project in California passed important milestones during the quarter.
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Black Hills Works Through Low Gas Prices, CEO Says
While it increased earnings slightly in 1Q2012 compared to 1Q2011, Rapid City, SD-based Black Hills Corp. had to overcome a 22% decrease in natural gas prices and a 13 cents/share negative impact on earnings from milder-than-normal winter weather, according to CEO David Emery.
Pennsylvania Lawmakers Seek Changes to Marcellus Law
The majority of Pennsylvania’s Marcellus Shale drilling law is just starting to go into effect, but two state lawmakers are already proposing tweaks, one small and one large.
Credit Crunch Ahead for Gas Drillers?
Because of the timing of the decrease in natural gas prices, and a “timely hedge book,” exploration and production (E&P) companies mostly have “coasted” through 1Q2012’s borrowing base season, but there may come a point when commercial banks may not continue to use a lending gas price deck well above strip prices, the energy team at Raymond James & Associates Inc. said last week.
Credit for Gas-Heavy Drillers Expected to Contract
Because of the timing of the decrease in natural gas prices, and a “timely hedge book,” exploration and production (E&P) companies mostly have “coasted” through 1Q2012’s borrowing base season, according to energy analysts with Raymond James & Associates Inc. However, commercial banks may not continue to use a lending gas price deck well above strip prices, wrote Kevin Smith, John Freeman and Justin Albert in a note to clients.
Drilling Reductions May Create Recycling Problem
The decrease in drilling expected in the Marcellus Shale this year could have an unexpected consequence: reducing the amount of flowback water that operators reuse at well sites.
How Low Can Gas Prices Go? MDU Exec Thinks Lower
Natural gas prices may well go lower before they turn around, the head of MDU Resources Group Inc.’s exploration and production (E&P) business, Kent Wells, told a financial analysts’ conference in New York City on Thursday.
Budget Cuts Nearly Forced EIA to Halt Annual Marcellus Report
Officials with the Department of Energy’s (DOE) Energy Information Administration (EIA) said they plan to publish their annual report on proved reserves in the Marcellus Shale by spring. However, budget cuts last year temporarily forced the agency to cut the report.
Cimarex: More Oil, NGL Production in 2012
Cimarex Energy Co. will spend $1.4-1.6 billion on capital expenditures (capex) in fiscal 2012, with nearly all of it devoted to drilling for oil and natural gas liquids (NGLs) in the Permian Basin and the Cana-Woodford Shale, company officials said Wednesday.
Talisman: Impact Fee Timing Stinks
Talisman Energy Inc. said Wednesday it will decrease its Marcellus Shale exploration activities and cut its capital spending budget for the play in half this year.