Eastern Scout

CNX Resources is pursuing a number of measures to optimize its operations and recently noted a number of achievements in this ongoing program. In its production profile optimization effort, the company has shut in 375 MMcf/d since May 1 in order to take advantage of the large positive spread between summer and winter natural gas prices. By July 1, CNX expects curtailments to fall to 300 MMcf/d. This production profile optimization will result in more than $30 million in incremental free cash...

In order to take advantage of higher commodity prices in late 2020 and 2021, Gulfport Energy says it has optimized its production profile. The company will defer near-term production until later in the year or early next year when natural gas prices are expected be materially higher. Additionally, the company plans to complete an additional three Utica wells in H2, with first production in late 2020 or early 2021. With the additional wells, Gulfport anticipates capex at the midpoint of its...

The EIA projects that Appalachian gas production will fall by 223 MMcf/d sequentially in July to 32.468 Bcf/d. There were 513 DUCs in Appalachia as of May, down by 10 versus...

Following an increase in oil and NGL prices, Montage Resources has returned substantially all of its curtailed production to sales as of June 1. The company had shut in low-margin production in liquids-rich areas in April, but it increased its condensate output in May as prices improved. With all volumes back online sooner than expected, Montage increased full-year 2020 production guidance to 565-585 MMcfe/d, up 2% at midpoint from prior guidance of 555-575...

Williams Cos. announced it will not refile applications “at this time” for a proposed 23-mile, 26-inch underwater gas pipeline across Raritan Bay and New York Harbor after state agencies in New York and New Jersey denied clean water permits for the third time. The $1 billion pipeline, in dispute for three years, was to bring gas into New York City and Long...

The EQM Midstream Partners operated Mountain Valley Pipeline is expected to be fully in service in early 2021. Work on the 303-mile project is 92% complete “despite the unprecedented regulatory and development challenges,” EQM president and COO Diana Charletta said in a press release. While additional legal and regulatory reviews have held up the schedule and increased costs, she said the company looks forward to MVP’s safe and successful startup. The remaining buildout activity will resume...

Diversified Gas & Oil completed acquisitions of conventional Appalachian assets from EQT Corp. and Carbon Energy in late May. The two deals boosted Birmingham, Alabama-based Diversified’s net production by 20%, or 109 MMcfe/d, over its 2019 average. It will also increase its 12-month EBITDA starting June 1 by an estimated $61-65...

Ascent Resources Utica Holdings revised its 2020 capex guidance downward to $600-650 million from the $700-800 million initially announced in February. The change was driven partially by efficiency gains and the company’s outperformance of cost reduction targets. During Q1, Ascent improved drilling cycle times due to equipment upgrades and technology advancements while decreasing non-productive time and rig move cycle times. Deep top-hole rig upgrades also drove efficiencies. On the...

EQT Corp. is curtailing 1.4 Bcfe/d gross (1.0 Bcfe/d net) of production starting May 16. The duration of the curtailment will be subject to commodity price movements, relationships and resulting economics, and could potentially continue through the end of Q2. Assuming the volumes are deferred through June 30, Q2 sales volumes are forecast to be 315-335 Bcfe (3.46-3.68 Bcfe/d), 45 Bcfe lower than prior guidance. The curtailment is not expected to affect full-year 2020 guidance. EQT’s Q1...

The EIA projects that Appalachian gas production will fall by 85 MMcf/d sequentially in June to 32.593 Bcf/d. There were 527 DUCs in Appalachia as of April, down by nine versus...