Replies to This Discussion

Permalink Reply by Gary on January 15, 2015 at 3:43pm

I got this today...

Range Resources to cut 2015 planned capex by a third to $870M
Jan 15 2015, 16:45 ET | About: Range Resources Corporation (RRC) | By: Carl Surran, SA News Editor Range Resources (NYSE:RRC) +2.1% AH after reducing its 2015 planned capital spending to $870M, down from $1.3B - which already had been cut 14% from 2014 levels - while targeting 20% Y/Y production growth.RRC says it expects 24% total production growth for 2014 at 1.16B cfe/day of gas equivalent; Q4 production volumes were 1.27B cfe/day, of which 31% were liquids.
Confirms the Mariner East propane pipeline was commissioned earlier than expected during the last few weeks of December, and expects utilization to lower its overall cost of propane deliveries by ~$0.20/gal vs. 2014 and result in as much as an additional $50M/year in cash flow.
RRC also says its proved reserves as of year-end 2014 rose 26% Y/Y to a record high of 10.3T cfe.

Charles, I don't know where you are located..I will not give any advise to you but I will tell you that I'm in southern beaver county,signed a lease 1.5 yr ago for the second time with RRC.. at that time they turned me down 4 times in 6 weeks and then signed for 2250.0 and 17%...1/3 pugh clause no deductions and a fairly good land owner contract..I went thru Gatto and Rentz lawyers..they pound the pavement in the Cannonsburgh area..RRC told me in an email that they would be in my area(Hookstown) in 2016 when they turned me down the 3rd time...then they signed me the next week after they signed with my neighbors...I signed for that price because most of my neighbors are signed with CHK..and I wanted to get the clock ticking so my lease so woud be close to ending around 2016\..like I said RRC signed up about 2000 acres that are mostly ajoining..if you read the other posts on Beaver county within the last 3 months you will read that RRC and CHK have been leasing agressivly in southern Beavr County.. inspite of the gas prices..Do you or anyone else thank that they (RRC and CHK or who knows who) is setting up to feed the Shell Cracker in Monaca...?? like Craig has said all along watch what they are doing in your area and NOT WHAT THEY SAY...good luck...!

Permalink Reply by Todd on January 15, 2015 at 4:30pm

Gary,
Why on earth of all places would Shell want to put an ethane cracker in Monaca? Oh yeah, most likely because the area surrounding it is super-rich in terms of natural gas liquids within the Marcellus and Upper Devonian Shales. 2/3 of the gas within these intervals is liquids and about half of those liquids are.... Ethane.

References: RRC and SWN

Permalink Reply by Nancy LeNau on January 16, 2015 at 4:43pm

Gary and Todd,      Thumbs UP !

Permalink Reply by Todd on December 24, 2014 at 7:46am

Nancy,
I think mlb is right. CHK can't sell what they don't own. It makes it a big positive for Greene TWP to have 2 operators presently leasing. Sounds like all your neighbors could have a formed a small land group for more negotiating power for lease terms - something that maybe Jason's friend could consider. Although, that 18% royalty is very attractive. That's a small bump up from the 17.5% CHK Hancock County deal in May 2012 but that land group received $4500 per acre most likely due to sheer size. I certainly hope that all of your neighbors negotiated for gross royalties excluding any post production costs of any kind. Do you know if this is the case? Also, how many acres do your other 2 neighbors own?

Southwestern just closed the deal on the CHK northern WV panhandle this week. As my father in law says, CHK is more of a land holding company -- just a matter of time before they sell all of Beaver County in my opinion. I certainly hope that Southwestern makes a good offer on our Hancock County land group in the new year. Thanks for the good news in Greene TWP Nancy!

Merry Christmas everybody!

Todd

Permalink Reply by Nancy LeNau on December 25, 2014 at 3:46pm

Thank you Craig, Gary, mlb and Todd !   Your input is much appreciated.  God Bless you all and Merry Christmas to ALL !   Nancy LeNau

Permalink Reply by Gregory L Cardosi on December 31, 2014 at 8:07am

I sure hope you're right Todd.

Our lease expires Sept of '15, and IMO as long as CHK is the owner, I don't think anything will come of these leases. I asked the owner (Bruce Reed) of the property where the well would most likely be drilled, and as of last month he hasn't heard from anyone from CHK.

I don't know particulars about these things, but I'm guessing if something was in the works for his land, he would know by now..............right?

Hope everyone has a very HAPPY (and prosperous) NEW YEAR!!

Greg

Permalink Reply by craig on December 31, 2014 at 1:03pm

Gregory,

CHK, as most drillers, don't really tell anyone anything until they have to....or have reason to.

A friend was told a well will be drilled at some point on his property. A permit was issued. About a year and a half later he still couldn't get a definitive answer. Then one day the paperwork arrived. About 3 weeks later they started building the pad.

Happy New Year!!

Permalink Reply by mlb on December 31, 2014 at 1:10pm

Yes, I agree.  The maga pad had less than 60 days on the lease an then CHK came in...so they can arrive in a hurry if they need to HBP.  So really no way to know.

Permalink Reply by mark ondrusek on February 25, 2015 at 4:56am

chk 2014 results. go to chk.com and read the report.  I think we will be seeing a lot more leases expire this year!  we will see very little capex spending here also!   too much of a good thing.  just my humble opinion!  I am referring to chk leased areas>

Permalink Reply by mlb on February 25, 2015 at 8:12am

It will be interesting to see if they pay up to renew or let them lapse.  I don't personally know anyone who has a lease expiring in 2015 but I have a few smaller parcels in 2016 and neighbors in 2016. 

If any larger parcels expire in 2015 and they do not renew it might tell us something.  I also don't think they will be back to do much for while.

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