Entergy Tops Electric Utilities List

by Luke Jones  on Monday, Aug. 19, 2013 12:00 am  

Entergy Arkansas Inc.'s Little Rock headquarters. (Photo by Mauren Kennedy)

CenterPoint Energy Arkansas Gas tops the list of the state’s largest gas utilities, serving 414,774 customers. Even though its assessable revenue of $335 million was 22.8 percent lower than 2011, it’s still much larger than the next largest gas utility, SourceGas Inc. of Fayetteville.

SourceGas’ assessable revenue was $117 million, 17.2 percent lower than last year, and it served 154,268 customers.

Gas Production

The list of largest gas production companies is ranked by volume of gas sales to the first buyer, as reported to the Arkansas Oil & Gas Commission.

Seeco Inc. of Fayetteville is the state’s largest gas production company this year. It sold 742,641,922 million cubic feet of gas in 2012, a 12.1 percent increase from 2011.

Seeco is the local office of Southwestern Energy Co. of Houston. Southwestern owns almost 800,000 acres and more than 3,000 producing wells across 13 counties in the Fayetteville Shale.

The company has continuously lauded its gas production in the shale, but it has also scaled back some of its efforts due to the very low price of the resource, which has ranged from a high of $13.58 per mmbtu in 2008 to a low of $1.91 per mmbtu in April 2012.

These lower prices resulted in Southwestern posting a loss of $355 million on $773 million revenue in its fourth 2012 quarter. However, it had profits of $245 million in the next quarter on revenue of $862 million.

Early in 2013, Southwestern stated it would spend about $830 million in the shale in 2013, compared with a little more than $1 billion in 2012. That includes drilling almost 400 wells, compared with 553 in 2012.

“In the Fayetteville Shale, we will continue to drive our costs and drilling time down as our newly acquired frac fleets become operational and our target is to invest within cash flow,” CEO Steve Mueller said in late 2012.

The next two largest gas production companies in the state are XTO Energy Inc. of Fort Worth, which is the local office of Exxon-Mobil; and BHP Billiton Ltd. of Melbourne, Australia, which purchased its assets in the Fayetteville Shale from Chesapeake Energy Corp. of Oklahoma City in 2011.

 

 

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