Overview: Utica Shale production growth in 2014 (Part 4 of 7)
Interest in Utica Shale assets from major players
EV Energy Partners (or EVEP) is a master limited partnership (or MLP). EnerVest is the controlling member of the general partner or GP). Both EnerVest and EVEP hold assets in the Utica Shale. Combined, EVEP and EnerVest have more than 900,000 acres in Ohio, not all of which is prospective for the Utica Shale.
EVEP has 173,000 net working interest acres. As of June, 2014, overall Utica activity included 437 wells permitted, 386 wells drilled. Chesapeake Energy, EnerVest, and Total are also working together in a joint venture in the Utica. In June, 2014, the joint venture had 500 producing wells, 300 wells waiting on pipeline capacity, and 186 planned total wells to be drilled through 2014.
Gulfport Energy (or GPOR) has 179,000 net acres in the Utica Shale and 32.35 net million barrels of oil equivalent (or MMboe) of proved reserves. GPOR produced 21,062 boe per day during 1Q14 in the play, which is 97% higher than production last year. As of May, 2014, GPOR was running seven rigs in Utica. For 2014, the company plans to invest ~$634–$674 million of capital expenditures in the area and is currently running seven rigs there, with a plan to drill ~85–90 gross wells. By the end of 2014, the company expects production to reach 21.06 MMboe from Utica.
Magnum Hunter has ~106,000 net acres prospective for the Utica Shale. On August 12, 2013, a wholly owned subsidiary of Magnum Hunter agreed to acquire rights to up to 32,000 net acres over a 10-month period, for a total maximum purchase price of $142 million. The company started its first horizontal well in the Utica Shale in April, 2013. In Utica, the company estimates its contingent or potential reserves to be 496 MMboe. As of March 31, 2014, it had 67,950 developed acreages in the Utica Shale.
PDC Energy (or PDCE) has ~54,000 net acres in the Utica Shale. The company plans to develop 18 spuds there in 2014, with five wells for wet gas and 13 wells for condensate. It expects 2014 production from the play to be ~9.5–10 MMboe.
Rex Energy (or REXX) had 21,300 net acres in the Utica Shale as of June, 2014. For 2014, the company plans to drill 89 net, or 108 gross wells in the area. In 2014, the company plans to operate one rig in the shale.
Higher oil production in the Utica Shale will benefit the companies engaged in production in the area. Some of the major players who are actively drilling, exploring, and producing oil in the Utica Shale include Chesapeake Energy (CHK), Antero Resources (AR), CONSOL Energy (CNX), and EV Energy Partners (or EVEP), among others. Some of these companies are components of the Energy Select Sector SPDR (XLE) and the SPDR S&P Oil & Gas Exploration & Production (XOP).