Utica Shale Crucial Factor in Chesapeake Energy's Future

By -
From Forbes:
A natural gas glut in the U.S. leading to a drastic fall in prices has embroiled Chesapeake Energyinto a difficult financial position. It’s been in a hurry to sell off assets to meet its funding shortfall, which is estimated to be at $22 billion.
Chesapeake is considering selling off several of its fully or partially-owned midstream businesses alongside some gas and oil fields. It recently completed a $2 billion deal give up its 46% stake in its affiliate Chesapeake Midstream Partners – a gas, NGL and oil gathering company.
We have a Trefis price estimate of $19 for Chesapeake, which is in line with the current market price.Chesapeake’s core business was natural gas exploration, but management is considerably shifting focus to a balanced mix of dry gas and liquids production to support sustainability of cash flows in future.
Utica Shale – Tremendous potential value
The move towards more of NGL and oil is reasonable as oil is an indispensable commodity, at least in the near future, in contrast to dry gas, which continues to be vulnerable as gas and coal jeopardize each other intermittently. Hence, there is a gold rush for reserves likely to hold more of oil than gas or NGL. In January, 2012, the French company Total agreed to partner Chesapeake in Utica Shale reserves JV with a $2.3 Billion investment.
Read the rest of the article here.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be...
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividen...
Read more

Do You Know The History of Fracking?

By -
Image
  In 2018, 59% of total oil production in the U.S came from hydraulic fracking, which means it accounted for more than two-thirds of domestically manufactured gas. By 2024, fracking will reach an astounding $68 billion market value! Of course, fracking is not a new drilling method as you can trace it back hundreds of years. That's why we want to consider the history of hydraulic fracturing (fracking). We will be stating historical facts about it and focusing on the major historical occurrences that have influenced modern-day fracking. Pre-Fracking Days The idea of fracking started back in 1862 when Edward A.L. Roberts (Civil War veteran) witnessed Confederate soldiers exploding artillery rounds into a canal that obstructed a battlefield. At the time, Edward A.L. Roberts called it superincumbent fluid tamping. On April 26th, 1865, Edward A.L. Roberts began experimenting with exploding torpedoes, which consisted of lowering a torpedo containing an amount of powder from fifteen to tw...
Read more