At the Well Weekly (v.2.21.2020)

Oil + Gas Update - TX Supremes Tackle ORRI Interpretation.

Natural gas prices inched up a few cents more since our last report while oil prices and rig counts remained flat. In pipeline news, the Constitution Pipeline is officially on the shelf, DEP issued a couple of permits for Mariner East II construction activities, and FERC approved PennEast's request for an extension of time to complete the project. In Appalachia court news, the Commonwealth Court upheld a judge's order denying a request by Chester County officials to stop Mariner East construction on county-owned property. In other regions, the Texas Supreme Court interpreted an overriding royalty interest broadly despite some arguably limiting language in the conveyance.

Here's the week in review...

Rig Counts, Spot Prices + Oil Prices

  • Rigs: National (+791); Marcellus (38); Utica/Point Pleasant (11)

  • Brent Crude: ­-$55.68/bbl

  • West Texas Intermediate: ­+$51.37/bbl

  • NYMEX: March 2020 @ +$1.955/MMBtu.

  • Spot Prices: Henry Hub (­+$2.02/MMBtu); Dominion South (­+$1.79/MMBtu); Tenn. Zone 4 (+$1.80/MMBtu)

("+" or "-" or blank denotes increase, decrease, or flat. )

WOPL - Appalachia

In our new section, WOPL ("waiting on pipelines"), we provide the latest news on the status of various pipeline projects in Appalachia:

  • Adelphia Project (Greater Philadelphia Region): DEP republished notice of the E&S permit application for Adelphia Gateway Natural Gas Pipeline and invited public comment.

  • Atlantic Coast (W. Va. to Va. and NC): SCOTUS set to hear oral argument on February 24, 2020.

  • Atlantic Sunrise (Northeastern PA to SE Pennsylvania): Nothing new to report.

  • Constitution (Northeastern PA to NY): Williams confirmed that it has shelved the Constitution Pipeline.

  • Empire Pipeline (NY to PA): Nothing new to report.

  • Leidy South - Benton Loop Expansion (PA): Nothing new to report.

  • Mariner East (Western PA to Eastern PA): DEP issued permits for installing 20” pipe along the Mariner East II route in three counties.

  • Mountaineer XPress (WV): Nothing new to report.

  • Mountain Valley Pipeline (Northern WV to Southern Va. and NC): A protester was arrested this week on three charges of assaulting workers for the Mountain Valley Pipeline.

  • NEXUS (Ohio to Michigan): Nothing new to report.

  • NFG FM100 Project (NC PA to Transco): Nothing new to report.

  • Northeast Supply Enhancement Project (NJ/NY): Nothing new to report.

  • Northern Access (NW PA to Western NY): Nothing new to report.

  • PennEast (PA to Central Jersey): FERC granted PennEast Pipeline a two-year extension to complete the construction of pipeline project facilities.

  • Regional Energy Access (NE PA to PA/NJ): Nothing new to report.

  • Revolution Pipeline (PA): Nothing new to report.

  • Rover (OH, WV, PA to Michigan): Nothing new to report.

  • TransCanada Eastern Panhandle Project (PA to WV): Nothing new to report.

Headlines & Holdings - Appalachia