Hammer

Quicksilver Resources Inc. is continuing to “hammer on the cost side” of its business, deferring elective spending in the energy patch and cutting back on staff. A recently announced joint venture (JV) in the Barnett Shale with Tokyo Gas Co. Ltd. was welcome news (see NGI, April 8), but there is more work ahead. “We are focused on the most important projects and we’re bringing in partners to both reduce debt and assist in the development of our assets,” said CEO Glenn Darden. “The company is very serious about reducing costs and living within cash flows.” Over the last year, the employee count has come down by about 20%. The Fort Worth, TX-based operator reported an adjusted net loss of $6 million (minus 4 cents/share) compared with a loss in 1Q2012 of $15 million (minus 9 cents). Since it was able to complete a long-sought Barnett Shale deal and in light of “challenging” natural gas liquids pricing, the company has shelved plans to create a Barnett master limited partnership (see NGI, Nov. 12, 2012).

During the first quarter, Quicksilver Resources Inc. lost more money than Wall Street was expecting as the company continued to “hammer on the cost side” of its business, deferring elective spending in the energy patch and cutting back on staff.

Ongoing repairs from hurricanes Ike and Gustav last September continued to hammer Stone Energy’s production at year’s end, the company said late Monday. However, Stone still managed to increase its estimated year-end 2008 proved reserves to 519 Bcfe, well ahead of the 403 Bcfe at year-end 2007.

Officials at Alaska’s Enstar Natural Gas Co. must go back to the negotiating table with producers ConocoPhillips and Marathon Oil to hammer out gas pricing terms more favorable to consumers in the state’s Southcentral region, state regulators ruled.

Officials at Alaska’s Enstar Natural Gas Co. must go back to the negotiating table with producers ConocoPhillips and Marathon Oil to hammer out gas pricing terms more favorable to consumers in the state’s Southcentral region, state regulators ruled.

Looking to hammer out all of the environmental logistics prior to holding a 2011 oil and gas lease sale in what is expected to be the gas-rich North Aleutian Basin, the U.S. Department of the Interior’s Minerals Management Service (MMS) has contracted with Rutgers University, with the assistance of the University of Alaska-Fairbanks, to modify an ice-ocean circulation model for Alaska’s Bristol Bay.

Looking to hammer out all of the environmental logistics prior to holding a 2011 oil and gas lease sale in what is expected to be the gas-rich North Aleutian Basin, the U.S. Department of the Interior’s Minerals Management Service (MMS) has contracted with Rutgers University, with the assistance of the University of Alaska-Fairbanks, to modify an ice-ocean circulation model for Alaska’s Bristol Bay.

The Los Angeles Department of Water and Power (LADWP), Puget Sound Energy, PacifiCorp, Morgan Stanley Capital Group and Reliant Resources all have signed separate settlement agreements in recent days with FERC staff that dismiss allegations that they tried to game California’s electricity markets in 2000-2001.

The global, multi-billion-dollar deal announced by California and Williams last week that could ultimately include two other states and more than a dozen local governments, along with a series of class action plaintiffs, calls for California to gain more control of its long-term power contracts and receive up to $417 million in separate payments from the energy company.