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Richard Zeits  

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  • Chesapeake's Dividend Cut - Food For Thought For Yield Investors [View article]
    Steves Opinion,

    Every joke has a serious side to it. Do you think they are marketing Utica? How much to you think they could get for it?
    Jul 24, 2015. 11:48 PM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    TOT, Is the glass quake-resistant?
    Jul 21, 2015. 09:14 PM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Twobits714,

    Miss Lime, Shelf Woodford and some other plays in that area produce a lot of water, although they are not "dewatering" plays like the CBM, for example.

    Both CHK and SD likely have little or moderate exposure, it appears, if nothing bad happens. Again, I cannot overemphasize more, this situation appears to be mostly about the "risk of a future event" (i.e., something that has not happened yet and is uncertain in terms of possible outcomes).
    Jul 13, 2015. 01:04 PM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    bbob68,

    I agree on that. The industry has a massive footprint and, therefore, inevitably interacts with the environment. We all wish there was a Ghavar field still sitting untapped somewhere in the U.S. Many environmental concerns would fall away.
    Jul 13, 2015. 11:45 AM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Twobits714,

    Indeed, the Hunton and the Mississippian are two different formations. There are several plays associated with each of these formations that vary by area and structural position within the formation.

    It obviously does not matter where the water comes from - it needs to be disposed.
    Jul 13, 2015. 09:10 AM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Jakefama,

    I am sorry if the article left you confused. To clarify, the article is indeed all about saltwater disposal wells. Water disposal is a process of injecting water in a formation (typically the Arbuckle or below, in this specific case), often using pressure.

    Here's how EPA, for example, defines an injection well:

    "An Injection Well is a device that places fluid deep underground into porous rock formations, such as sandstone or limestone, or into or below the shallow soil layer. These fluids may be water, wastewater, brine (salt water), or water mixed with chemicals."

    I am a bit surprised, however, that you brought up water injection "to maintain reservoir pressure" in the context of Miss Lime in north-central Oklahoma. Actually, believe it or not, there are pilots of this type that the industry is experimenting with in various tight plays, but those projects a still very few and considered esoteric.

    Really you must be confusing Miss Lime with something like the Arab-D zone in that other little field, where saltwater injection into the producing zone is indeed part of the production process aimed at both maintaining pressure and enhancing recovery. Well, there is a little difference between the Miss Solid and Ghavar's Arab D - they call it permeability.
    Jul 13, 2015. 08:40 AM | 2 Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    John001,

    The majority of the wells in question are "combo" producers. They produce both oil and liquids-rich gas.
    Jul 12, 2015. 12:17 PM | 2 Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Stag15,

    I agree with all your points. I would add however that the real issue is not the damage that has been incurred. The real issue is how to manage the risk of something bad happening in the future.
    Jul 11, 2015. 01:50 PM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Twobits714,

    I don't think the article said that CHK's in the Mid-Continent focuses on what in the industry is called "dewatering" plays (Hunton Lime and some CBM plays would be examples).

    With regard to the Miss Lime and other plays, you may have a look at CHK's current presentation, pp. 11-12, 19-20. CHK spoke about their operations in the area in some detail on the latest conference call.
    Jul 11, 2015. 12:36 PM | 2 Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Vireoman,

    It is important that research is unbiased. The jury is still out in terms of what is the precise cause and nature of the recent seismicity spike.
    Jul 11, 2015. 11:35 AM | 2 Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    Anthony,

    Just to make sure that there is no misconception here - the problem has almost nothing to do with "fracking." It has to do with water that its co-produced alongside oil and gas from certain geologic formations in that area. In other words, an old-fashioned well that used no fracking may produce just as many barrels of water per barrel of oil as a fracked well.

    No doubt, the water used in fracking also flows back, but it represents a smaller percentage relative to the natural formation water produced.
    Jul 11, 2015. 11:30 AM | 7 Likes Like |Link to Comment
  • Oklahoma Earthquakes: A Tort Threat To Oil & Gas Operators And Investors [View article]
    bbob68,

    I don't think EOG or PXD (or the vast majority of U.S. unconventional operators, for that matter) have any exposure to the abnormal seismicity in north-central Oklahoma and south-central Kansas.
    Jul 11, 2015. 11:23 AM | 2 Likes Like |Link to Comment
  • Chesapeake Energy: A Spin-Off For Southern Marcellus? [View article]
    Masayokato,

    A have already submitted a quick-read note on SWN and a CHK note is coming very soon.

    I think this is a terrific asset. It would have been under-utilized under CHK management (barring an equity issuance to finance it).

    SWN has a better financial position, but the acquisition cost is not low. They stand a chance to make a solid return in the long run. But I don't think it will be a true "steal." Overall moderately positive for the stock, IMHO.
    Oct 16, 2014. 11:32 AM | 1 Like Like |Link to Comment
  • Chesapeake Energy - Commodity Price Differentials Surprise [View article]
    Jack,

    I would argue the NGL pricing has already suffered a heavy penalty due to overproduction (ethane particularly). Oil, on the other hand, should be more immune given that it is a water-borne commodity and the domestic production should simply displace imports.
    Jul 30, 2014. 03:18 PM | 1 Like Like |Link to Comment
  • Chesapeake Energy - Commodity Price Differentials Surprise [View article]
    Fracjob,

    I am already seeing comments on several conference calls about reduced plans for gas drillling.

    The Marcellus may be different, however, than the rest of the nation. Obviously, the differentials create a tremendous incentive to the midstream sector to expand take-away capacity (a very lucrative business with objectively strong fundamentals). When demand is strong, all capacity addition happen on a pre-contracted basis. So the Marcellus will produce to that capacity (otherwise losses to produces would be even greater due to demand payments that are effectively sunk cost).

    Marcellus operators, in my opinion, are in a desperate need of a long-term hedging market that would not be punitive. It will gradually develop, in my opinion, with new highly liquid benchmarks in the Northeast region.
    Jul 30, 2014. 02:11 PM | 3 Likes Like |Link to Comment
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