A little talked about problem the drillers have had including CHK is the price of NG liquids and condensates have dropped further as a percentage than oil , there may be some relief however as they are considered semi refined and they can be exported , it should help support pricing.
HOUSTON, June 25 (Reuters) - Kinder Morgan Inc aims to start up its second condensate splitter at its Houston Ship Channel complex next month, a spokeswoman said.
The 50,000 barrels per day splitter is slated to begin commissioning next week to test all systems leading to startup, the spokeswoman said.
Kinder Morgan started up the first of two 50,000 bpd splitters in late March after delays in delivery of manufacturer parts and weather issues pushed startup from mid-2014.
Due to the boom in output of condensate in the U.S. shale plays, the oil industry is investing up to $2.4 billion in condensate splitters to "split" the very light form of crude into components like jet fuel, diesel and naphtha, a building block for gasoline, to sell domestically or export.
It is more sophisticated than an oilfield stabilizer, which removes natural gas liquids from condensate, but does not make finished motor fuels like a refinery.
BP Plc has a 10-year deal to buy all the output from both splitters.
Magellan Midstream Partners has a similar deal with Trafigura for a 50,000 bpd splitter under construction in Corpus Christi, Texas.
U.S. regulators say stabilized condensate qualifies as an exportable refined product, so companies can export it without having to run it through a splitter first.
Some planned splitter projects have been altered or put on hold as companies gauge whether to move forward or build cheaper stabilizers.
CHK has plenty of wells drilled in their inventory that have not been fracked yet , not to mention the re-frack program they are implementing. On a side note take a look at SandRidge , they are getting hammered , trading in the $.86 range ...........WOW
I sold mine last year for a loss , the good part was I had to , I had so many non energy gains
last year my tax liability was rather large ,Even my BTU loss could not save me from wrath of the tax man.........If it drops another buck or so I may gamble , in no way is BTU investment grade.......
Lee , The trend is your friend ………..I am sure you are familiar with that phrase. How many coal power plants are currently under construction compared to natural gas generation , how many natural gas power plants are being retired compared to coal power plants.
A former employee of Peabody Energy Corp. is suing the company over allegations that managers lost tens of millions of dollars from Peabody’s employee retirement plan through risky investments in the company’s own stock.
The suit comes on the heels of a similar one filed against Arch Coal on Tuesday. Like the lawsuit against Arch, the Peabody suit, brought by Lori Lynn on behalf of others who invested in the company’s retirement plan, seeks class action status.
Lynn’s complaint, filed Thursday in U.S. District Court by attorneys from the firms Dystart Taylor Cotter McMonigle & Montemore PC and Kessler Topaz Meltzer & Check LLP, lists as defendants Peabody; its subsidiaries Peabody Holding Co. LLC and Peabody Investment Corp.; several company executives, including current CEO Glenn Kellow; and company directors.
The lawsuit alleges that managers of Peabody’s defined contribution plan broke their fiduciary duty and federal law by continuing to offer Peabody stock as an investment option, and by continuing the plan’s existing investment in Peabody stock, when “it was imprudent to do so.” Further, it alleges company leaders and plan managers should have known that investing in Peabody stock was risky given drops in coal prices, the company’s debt-to-equity ratio and other financial factors.
Cheap, abundant nat gas a bigger threat to coal than Obama's regulations
Jun 10 2015, 14:45 ET | By: Carl Surran, SA News Editor Contact this editor with comments or a news tip
U.S. coal companies worried about the Obama administration’s proposed clean air rules actually face a bigger threat: cheap, abundant natural gas, which is crushing coal prices with no letup in sight, according to a Bloomberg report.Shale formations in the eastern U.S. are yielding record amounts of gas, pushing prices of the fuel in the region below coal, which already had been 60% less expensive on average since 2001; as power generators use more gas, coal is piling up at the fastest rate since 2009.U.S. utilities are on track to end 2015 with 171M tons of coal in reserve, the highest since 2012, says a BB&T analyst - “It’s going to be ugly,” says Doyle Trading's Hans Daniels. “When stocks build up like that, it just defers the pain for the coal companies.”
A new investigation has found that the world’s largest private-sector coal company does not have adequate funds or insurance to clean up its own mining operations, increasing the risk that taxpayers will have to pay billions of dollars to clean up toxic coal mine sites across the country.
Reuters reported last week that St. Louis-based Peabody Energy is “under scrutiny” from the federal government over concerns that the company is violating federal bonding regulations that are intended to guarantee that if a mining company goes bankrupt, it has sufficient insurance to pay to clean up its own mines. Instead of paying a third party for cleanup insurance, Peabody Energy has sought to comply with federal and state rules by promising regulators that it has sufficient financial resources on hand to pay for any cleanup costs — a practice known as self-bonding.