1 / 22

Marcellus Shale Strategic Analysis

Marcellus Shale Strategic Analysis. May 17, 2010. Tasking . Companies involved in MS/ possible end-users Possible strategic partners Analysis of PA regulations regarding compression Standards: Operating Pressures Pipeline flows Fracturing practices. Methodology (cont’d).

holli
Download Presentation

Marcellus Shale Strategic Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Marcellus Shale Strategic Analysis May 17, 2010

  2. Tasking • Companies involved in MS/ possible end-users • Possible strategic partners • Analysis of PA regulations regarding compression • Standards: • Operating Pressures • Pipeline flows • Fracturing practices

  3. Methodology (cont’d) • Identify companies involved • Open Source • Specialized databases • Compare companies involved w/ other shale plays • Indicates strength in industry • Identify compressor MFR’s • Profile • Identify Compressor MFR’s association in MS

  4. Methodology (cont’d) Marcellus Other Shale Compressor MFRs

  5. Key Finding: Top Players • Chesapeake Energy • Range Resources • Seneca Resource /EOG • Statoil • Atlas Energy • EQT Corp • Chief Oil & Gas • XTO Energy • EXCO Energy • Talisman/Fortuna • Cabot • East Resources

  6. Low Hanging Fruit (See Matrix Cover Sheet/Matrix Overview)

  7. Strategic Profile • MFR compressor packages • Associations w/ MS • Other shale plays • Revenues $5 M – $25M • Not teamed w/ Ariel

  8. Company Rankings • Dearing Compressor & Pump • Kinglsy Compression • Sullivan Palatek • Rix Industries • McClung Energy Services • Titan Compressor Systems • Big Gas Compression • ACI • Brahma • Compass Compression • Natural Gas Compression Systems • UE Compression • Natural Gas Services Group

  9. Dearing Compressor • Revenue: $20 – 50 million • Employees: 93 w/ plans to add • Shale Affiliation: Marcellus • Products: GE, Gardner Denver, Ariel, Reliance • Location: Ohio

  10. Kingsly Compression • Revenue: $10 million • Employees: 40 (2 branches) • Shale Affiliation: Unknown, actively marketing • Products: Ariel, Cummins, Ingersoll Rand, Quincy • Location: Ohio/Pennsylvania • End Users: EQT, Chesapeake, Range Resources

  11. Sullivan Palatek • Revenue: $23 million • Employees: 90 (last reported) • Shale Affiliation: Barnett Shale and Marcellus Shale • Products: OEM • Location: Indiana • Partner: Union Drilling

  12. The Hanover Company • Purchased by Exterran • Other Exterran Compression Distributors • Global Compression • Universal Compression • Weatherford International • Ariel

  13. Compressions Systems Inc • Headquarters: Midland, TX • Locations: Midwest • Shale Affiliations: Likely • Products: Ariel, GE Gemini

  14. State Management • Decentralized, unorganized • No comprehensive overview • No method for sharing w/ connected states • Priorities: • Water management • Environmental degradation • Construction codes • Reclamation

  15. Future State Issues • Severance tax • Increasing bond limits • Single - $2,500 • Multiple - $25,000 • “Disaster Watch” • Fracturing Home water well exploded by gas fracking in Dimock, PA. Source: http://beavercountyblue.files.wordpress.com/2010/02/dimock-well-explosion-photo1.jpg

  16. Fracturing • Horizontal wells (60% will increase) • Hydraulic dominant over air • Greater access/Higher ROI • $3.5 million per rig • 750 – 2500 psig • More accident prone • Vertical wells (40% will decrease) • Limited access/Lower ROI • $255 K • 50 – 350 psig • Easier accident containment

  17. Compressor Regulations • Pennsylvania • None • Ohio • None • West Virginia • None • New York • >125 psig requires permit = Good Faith Agreement *intervene only if problems

  18. Brownie Points - NGV • Louisiana Act 469 • Tax credit increases • 20 to 50% on conversions • $3000 for direct buy • Payroll tax credit for workers • NAT GAS Act 2009 • Sponsored by Rep. Dan Boren (D-OK), John Larson (D-CT) • AT&T • Investing USD $565 M in natural gas hybrids • 15K vehicles in the next 10 years • Congressional Natural Gas Caucus • First hearing 10/2009 • Tennessee Gas Pipeline • Dominion Keystone Pipeline

  19. Brownie Points (cont’d)

  20. Wiki Tour http://marcellusshale.wikispaces.com

  21. Thank You Questions?

  22. Contact Information Kathleen Moore kmoore80@mercyhurst.edu Zach Auerbach zauerb90@mercyhurst.edu SladjanaMilicevic smilic44@mercyhurst.edu Casey Grueber cgrueb97@mercyhurst.edu

More Related