Frack Sand Trucking Company Adding Dozens of Trucks and Drivers in 2012

A frack sand trucking company has plans to add dozens of trucks and almost 100 more Eagle Ford Jobs by the end of 2012. Cornell Carriers is one of many companies hiring drivers by the dozen. The demand for hauling sand, fluids, and oil production is outstripping supply.  There simply aren't enough qualified drivers living in South Texas. Almost every company with trucks is hiring drivers. If you have a CDL, take advantage of the opportunity. Read more about Cornell's plans at BizJournals.com

P.S. Many of our most successful jobs listings are related to trucking. You can gain exposure to thousands per month by posting jobs on our Eagle Ford Careers page.

 

Copano Energy Eagle Ford Shale Update - May 2012

Copano Energy Eagle Ford Midstream Map
Copano Energy Eagle Ford Midstream Map

Copano Energy provided an update on its Eagle Ford operations in May. Highlights include:

  • Copano is investing $1 billion in organic projects
  • Has committed volumes of ~1 Bcf/d with 10 year terms from producers
  • Houston Central (200 mmcfd)cryogenic plant is performing better than expected
  • Lean oil plant at Houston Central realizing lower recoveries than expected
  • New 400 mmcfd cryogenic plant at Houston Central will improve margins further Q1 2013. Another 400 mmcfd expansion coming in 2014
  • High NGL content in the Eagle Ford creates short-term constraints, but long-term opportunity

Other growth projects and notes

  • DK Pipeline extension will reach into McMullen County by Q2 2013 ($120 million)
  • Double Eagle Condensate Pipeline JV - Copano will spend $100 million on the 140 mile condensate gathering system. Building system in partnership with Magellan Midstream (100,000 b/d of capacity planned)

Find the full presentation at copanoenergy.com

Chesapeake's Eagle Ford VPP Plans Could Mean $1 Billion

Chesapeake Energy announced plans to sell a volumetric production payment (VPP) related to its Eagle Ford Shale assets earlier in the year. The plans were outlined with other assets sales to help fill a funding gap created by decade low natural gas prices. Since the initial announcement, the company has delayed plans to sell the VPP in the Eagle Ford. I've seen two reasons given in the press. The reason I believe to be accurate is that Eagle Ford assets were retained to hold output and cash flow at levels required by debt covenants. With favorable oil prices and production additions in the tens of thousands of barrels per day in 2012, it stands to reason the Eagle Ford is becoming a significant contributor to the company's bottom line.

The other reason mentioned by the press is oil prices have fallen $15 over the past several weeks. While WTI oil prices have fallen below $90 per barrel as of this morning (May 30, 2012), Eagle Ford crude and condensate is trading at a premium to the aforementioned benchmark. Oil, from the Eagle Ford, trades at a premium to WTI and is more comparable to Light Louisiana Sweet (LLS) crude.  LLS prices closed at an almost $11 premium to WTI yesterday. I'm not downplaying the $15 move in WTI, but prices in South Texas are holding at a higher level near $100 per barrel.

My expectation is that Chesapeake will close on an Eagle Ford VPP sometime in 2013.

A VPP will allow Chesapeake to recover some of its capital investment by selling future production at an earlier time. VPP’s usually have a prescribed time period and a prescribed volume. Chesapeake will deliver the product for the buyer until the conditions of the agreement are met. When the obligations are met, existing production will revert back to Chesapeake.

Credit Ratings on the Rise in South Texas?

You'll find EagleFordShale.com quoted in an article published by the The Bond Buyer on May 29, 2012. The paper follows developments in the credit markets across the country. The author, Richard Williamson, took a general look at the overall credit outlook in South Texas. The region stands to benefit from even better tax revenues and higher credit ratings as the Eagle Ford is developed. Read the entire article at BondBuyer.com