In an industry known for boom-and-bust cycles, Encino Energy plans to follow a strategy of stable development in Ohio’s Utica Shale, President and CEO Hardy Murchison said Friday.
Encino Energy is a partner in Encino Acquisitions Partners, which bought Chesapeake Energy’s assets in Ohio last year for $2 billion, including an office building office in Louisville, drilling rights to 900,000 acres and more than 900 wells.
But where Chesapeake spent freely to explore new areas — and piled up debt — Texas-based Encino Energy has focused on proven reserves and a healthier balance sheet.
“All of that is part of a longer-term strategy to run this as a normal business that needs to be profitable, less volatile and therefore better for its shareholders, its employees and the community,” Murchison told The Canton Repository after he and other members of Encino’s team spoke to the Stark Economic Development Board at Kent State University at Stark.
On Thursday, Murchison and chief operations officer Ray N. Walker Jr. met with Gov. Mike DeWine and other state leaders, and spoke at the Ohio Oil & Gas Association’s annual meeting.Continue reading by clicking here.
And from NGI:
“You have to recognize that we’re in the transition from Chesapeake to Encino and that takes months to accomplish,” Murchison said Thursday at the winter meeting of the Ohio Oil and Gas Association (OOGA) in Columbus. “As we take over, we obviously start to have more and more influence, but to be clear, virtually all of the wells that will go into production in 2019 were planned by Chesapeake when we arrived on scene.”
In his first public address since the acquisition was announced, Murchison said Encino is stabilizing operations and trying to work at a steadier pace. Chesapeake was among the first to develop the Utica, and with a once formidable position across the Appalachian Basin, it earned a reputation for innovation and solid well results. Chesapeake, Murchison said, had regularly been moving crews back and forth between Ohio and Pennsylvania, where it still has a large position in the northeastern part of the state.Click here to read that whole article (subscription required).