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THE Natural Gas Thread Pt. 2

General discussions of the systemic, societal and civilisational effects of depletion.

Re: THE Natural Gas Thread Pt. 2

Unread postby GoghGoner » Wed 14 Feb 2018, 10:12:27

More haircuts because, hey, this stuff was never profitable. Rex Energy is also filing soon.

McClendon-founded Ascent Resources Marcellus files for Chapter 11 bankruptcy

Ascent Resources Marcellus Holdings LLC, a shale driller founded by the late U.S. fracking pioneer Aubrey McClendon, said on Tuesday it had filed for Chapter 11 bankruptcy as part of a negotiated plan with lenders to reduce about $1 billion of debt and boost liquidity.

Privately held Ascent is one of several energy companies McClendon launched after he was ousted in 2013 during a corporate governance crisis from Chesapeake Energy Corp, which he had founded and built into one of the largest U.S. shale drillers.
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Re: THE Natural Gas Thread Pt. 2

Unread postby ROCKMAN » Wed 14 Feb 2018, 15:50:44

And another fine example of how filing bankruptcy make the INDUSTRY stronger. Apparently it will be the money lenders (banks/bond holders) that take the hit and not the investors or service companies: "...and added that its vendors and service providers would not be impaired by the restructuring...". Just as in the vast majority of Chapter 11 filings. I suppose those interest rate 2 to 3 times higher then that of Treasuries don't look that good right now.
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Re: THE Natural Gas Thread Pt. 2

Unread postby coffeeguyzz » Wed 14 Feb 2018, 18:28:30

The Ascent referenced in the article is the West Virginia operation with 43,000 acres targeting the Marcellus only. There were a few articles around describing the situation in more detail, but I did not read them.
Backing away from pipeline commitments at these horrifically low prices may be a factor in the BK process.

Supposedly, it has all somewhat been amicably pre-arranged with lenders and the BK process will be complete in about 60 days with minimal interruption.

Rex may become a buyout target.
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Re: THE Natural Gas Thread Pt. 2

Unread postby coffeeguyzz » Wed 14 Feb 2018, 18:43:37

December Pennsylvania production report just released.
One well - Chesapeake's McGavin 6 - has now produced 6 1/2 Billion cubic feet first FIVE months online.
The productivity out of the Appalachian Basin will reverberate throughout the global energy markets for decades to come.
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