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  • Impacts of Recent E&P Deals on Unconventional Drilling

    Monday, October 24, 2011

    With the latest flurry of E&P deals (Statoil-Brigham, Kinder Morgan’s impending sale of El Paso E&P)—and still more to come—what might be the impacts of M&A action would be to unconventional drilling? The Unconventional Drilling Report compared rig counts pre- and post-deals for other recent E&P deals focused primarily on unconventional plays and concluded:  Not much. ExxonMobil’s U.S. land rig count has scarcely budged since it acquired XTO, averaging 68 vs. their pre-acquisition tallies of 7 and 64, respectively. Post-acquisition Chevron has averaged 20 rigs since closing on Atlas vs. their respective pre-deal averages of 8 and 7. BHP has averaged 25 after closing on Petrohawk vs. pre-deal average tallies of 2 and 18, respectively. The biggest post-deal traction for bolstering rig counts has come not from outright acquisitions but from joint venture deals, namely Chesapeake’s, whose rig count jumped from a pre-JV 120 to an average 140 since the last JV closed (and recently peaked at 154). It will climb still further after an imminent JV closes on Chesapeake’s Utica Shale acreage. 

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    Posted by: The Unconventional Drilling Report

    Category: U.S. Land Industry Review

    Tags: Kinder Morgan Petrohawk Unconventional Drilling BHP Billiton Chevron El Paso E&P Chesapeake ExxonMobil XTO Energy Statoil Utica Shale Rig Count Atlas

  • Storage Levels Near Record High

    Wednesday, November 10, 2010

    From The Unconventional Drilling Report with data as of October 29, 2010:

    Near-record storage levels are resulting in curtailments. Pipeline operators have been restricting receipt volumes in response to burgeoning storage levels. Companies like Kinder Morgan and El Paso are restricting receipts across several major pipelines, including portions of the Rockies Express, the Midcontinent Express, the Tennessee and Sonat. Colder weather this weekend is providing some short-term relief on at least one El Paso system; however, as we mentioned above, mid-month forecasts call for warmer weather in the east.

     

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    Posted by: The Unconventional Drilling Report

    Category: U.S. Land Industry Review

    Tags: Kinder Morgan Unconventional Drilling Gas Storage Levels

  • Relieving Bottlenecks

    Thursday, April 29, 2010


    From the April 2010 issue of The Land Rig Newsletter:


    Notably, Rich Kinder of Kinder Morgan, during an interview with Bloomberg, recently talked about bottlenecks at natural gas trading hubs including Perryville due to “booming shale production.” Despite the hyperactivity in the area, meaningful expansion will take a number of years. According to a recent FERC presentation, Perryville is expected to have a capacity of roughly 14 Bcfd by 2012. We counted one major project, the Haynesville Connector, that will enter service in the near future. That project will add 1.5 Bcfd of additional capacity. The next major project on the docket is the Tiger pipeline, which is scheduled to begin offering service in the first half of 2011.


    Other notable projects include Enterprise’s Haynesville Extension, which will transport up to 2.1 Bcfd, and Enbridge’s LaCrosse Pipeline, a 42-inch conduit from Carthage to the Sonat pipeline in Louisiana, due for start-up in 3Q 2011 and late 2011 or early 2012, respectively.

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    Posted by: The Land Rig Newsletter

    Category: U.S. Land Industry Review

    Tags: Kinder Morgan Haynesville Shale

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