Worth

Prospects for lower prices for natural gas liquids (NGL) and natural gas production have contributed to deteriorating profitability at Fort Worth, TX-based Quicksilver Resources Inc. and prompted a corporate credit rating downgrade by Standard & Poor’s Ratings Services (S&P).

Directors of Australia-based Eureka Energy Ltd. have rejected a proposal from Fort Worth-based Lonestar Resources Inc. for Eureka to acquire Lonestar for scrip consideration. Eureka said it had expected to reject the proposal when it was received last week. “Nevertheless, over the weekend the company pursued discussions with Lonestar with the objective of securing a proposal on more favorable terms,” Eureka said. “The parties were unable to agree on terms, and consequently Lonestar has withdrawn the proposal.” An offer by Australia’s Aurora Oil & Gas Ltd. to acquire Eureka expires Friday (see Shale Daily, June 11). Both Aurora and Eureka have assets in the Eagle Ford Shale of South Texas, as does Lonestar. On Wednesday Eureka said “it is reasonable to accept” the Aurora offer after previously recommending that shareholders reject it.

Standard & Poor’s Ratings Services (S&P) has cut the corporate credit rating of Fort Worth, TX-based FTS International Services LLC, one of the top five hydraulic fracturing (fracking) service providers in North America, because it said capacity additions and rising costs, combined with moderating demand and low natural gas prices, are pressuring margins in the fracture stimulation industry.

Chesapeake Energy Corp. has to sell “at least” $7 billion worth of assets this year to avoid a breach of debt covenants and a credit downgrade, a senior analyst with Moody’s Investors Service said Thursday.

Chesapeake Energy Corp. has to sell “at least” $7 billion worth of assets this year to avoid a breach of debt covenants and a credit downgrade, a senior analyst with Moody’s Investors Service said Thursday.

Chesapeake Energy Corp. and CEO Aubrey K. McClendon were notified last week by the Securities and Exchange Commission (SEC) that the Fort Worth, TX, regional office has launched an informal inquiry and “requested that the company and Mr. McClendon retain certain documents.” The inquiry “should not be construed as an indication that any violation of the federal securities laws has occurred.” The company and McClendon said they “intend to cooperate” in responding.

Chesapeake Energy Corp. and CEO Aubrey K. McClendon have been notified by the Securities and Exchange Commission (SEC) that the Fort Worth, TX, regional office has begun an informal inquiry and “requested that the company and Mr. McClendon retain certain documents,” the company said after the stock market closed on Thursday.

Chesapeake Energy Corp. and CEO Aubrey K. McClendon were notified by the Securities and Exchange Commission (SEC) that the Fort Worth, TX, regional office has launched an informal inquiry and “requested that the company and Mr. McClendon retain certain documents,” the company said after the stock market closed on Thursday.

A new completion design doubled initial production (IP) rates from the Marcellus Shale in southwestern Pennsylvania for Range Resources, the Fort Worth, TX-based company said Thursday.