natural gas prices

In its third conference call to discuss quarterly earnings since going public in January, Rice Energy Inc.’s management team on Wednesday failed to impress, as year-over-year natural gas prices plummeted and production was held back by a lack of progress in the Marcellus Shale, where it completed only five wells during the period.

In what it said is an effort to improve regional business performance, Chevron Corp. is restructuring its Appalachian business unit, which oversees the company’s Marcellus and Utica shale assets.

Pennsylvania Gov.-elect Tom Wolf has selected Katie McGinty, who opposed him in the Democratic primary, as chief of staff for his administration when he takes office Jan. 21 (see Shale Daily, Nov. 5). McGinty, 51, of Philadelphia, served as secretary of the Pennsylvania Department of Environmental Protection under former Democratic Gov. Ed Rendell from 2003-2008. She was also chairwoman of the White House Council on Environmental Quality under President Bill Clinton and served as a legislative aide for Vice President Al Gore. After finishing fourth in the May primary, McGinty appearing at Wolf events and worked on his behalf (see Shale Daily,May 21).

As the flow of cold arctic air meandered its way into the US next-day gas prices surged at points which hadn’t been hit with the cold’s paralyzing effects. Multi-dollar gains were seen at New England points, but broad overall gains were able to offset weakness in the Midwest and Marcellus. The overall market gain was 14 cents to an average of $4.28, but if the titanic moves in a handful of New England points are factored out, the figure comes in at about a 6-cent gain nationally. The Mid-Atlantic saw healthy double-digit gains and producing regions were also strong. Futures worked lower as traders factored in milder weather forecasts and at the close December was off 6.2 cents to $4.185 and January settled 6.0 cents lower at $4.284. December crude oil fell 76 cents to $77.18/bbl.

December natural gas is expected to open 6 cents lower Wednesday morning at $4.19 as traders mull the possibility of a jet stream moderation to the current pattern of intense cold. Overnight oil markets weakened.

Onshore independent Halcon Resources Corp. is slashing its capital budget and will drop almost half of its rigs in 2015, but production year/year still will jump by 15-20%, CEO Floyd Wilson said Tuesday.

Onshore operators have been pumping millions of pounds of sand and ceramic proppants into their fractures (fracks) at a furious pace this year to improve estimated ultimate recoveries (EUR) from new wells and recompletions, a pace that suppliers don’t see slowing down going into 2015.

The U.S. Energy Information Administration (EIA) has received approval from the Office of Management and Budget (OMB) to add state-level data from 10 states, including some of the most shale-rich names in its current “Other States” category, to its monthly natural gas production survey.

Encana Corp.’s strategic decision last year to balance its weighty natural gas portfolio with more liquids-rich assets propelled profits in the third quarter and enabled the independent to hit targets two years ahead of schedule, CEO Doug Suttles said Wednesday.