Northeast Natural Energy Extends Credit Facility & Plans Further Growth

NEW INVESTMENT SIGNALS CONTINUED GROWTH FOR NORTHEAST NATURAL ENERGY

CHARLESTON, W.Va.–BUSINESS WIRE–Nov 23, 2020

Northeast Natural Energy (“NNE” or the “Company”) announced today that the Company has entered into an amendment with its senior lending group led by EIG Global Energy Partners (“EIG”) to extend the maturity of its current credit facility to December 2023 and provide significant additional liquidity to the Company to execute on its go-forward business plan.

In connection with the amendment, the lead equity investors in the Company, including Metalmark Capital, Wells Fargo and Prudential, have agreed to make an incremental equity contribution to the Company of $65 million to help fund capital expenditures.

Northeast Natural Energy’s President and CEO Mike John acknowledged that “our team is very grateful for the confidence shown by our investors and lenders in expanding and extending their financial support of the Company.”

Greg Myers, Partner at Metalmark Capital, stated, “Mike John and the management team at NNE have done an amazing job at navigating the challenges of the commodity price decline with a relentless focus on costs and well level economics. The Company has grown substantially in recent years to having over 100 wells online with nearly 400mmcfd of gross production and is well capitalized by its lenders and equity investors to continue its growth trajectory from this point forward.”

Northeast Natural Energy LLC, headquartered in Charleston, WV, is a private oil and gas company focused on natural gas drilling, exploration, acquisition and joint-venture opportunities in the Marcellus Shale. The principals of NNE have worked together in various capacities for over 30 years and possess a significant amount of knowledge and operational expertise in the Appalachian Basin, in particular the Marcellus Shale formation.

CORRECTING and REPLACING: New Investment Signals Continued Growth for Northeast Natural Energy

Fourth paragraph above, last sentence should read: The Company has grown substantially in recent years to having over 100 wells online with nearly 400mmcfd… (instead of The Company has grown substantially in recent years to having over 100 wells online with nearly 400mcfd …). [Two letters m versus one m; actually should be two capital M letters i.e., MM as indicated by the definitions below — DGN]

NOTE: NNE is the company responsible for drilling and fracking in the Morgantown Industrial Park including an experimental well. Also, in western Monongalia County on both sides of Blacksville, along Dunkard Creek, NNE has a number of Marcellus shale well pads. DGN

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How do I convert natural gas prices in dollars per Ccf or Mcf to dollars per Btu or therm? (US Energy Information Agency)

Btu—British thermal unit(s)
Ccf—the volume of 100 cubic feet (cf)
M—one thousand (1,000)
MM—one million (1,000,000)
Mcf—the volume of 1,000 cubic feet
MMBtu—1,000,000 British thermal units
Therm—One therm equals 100,000 Btu, or 0.10 MMBtu

In the United States, natural gas can be priced in units of dollars per therm, dollars per MMBtu, or dollars per cubic foot. The heat content of natural gas per physical unit (such as Btu per cubic foot) is needed to convert these prices from one price basis to another.

In 2019, the U.S. annual average heat content of natural gas delivered to consumers was about 1,037 Btu per cubic foot. Therefore, 100 cubic feet (Ccf) of natural gas equals 103,700 Btu, or 1.037 therms. One thousand cubic feet (Mcf) of natural gas equals 1.037 MMBtu, or 10.37 therms.

You can convert natural gas prices from one price basis to another with these formulas (assuming a heat content of natural gas of 1,037 Btu per cubic foot):
$ per Mcf divided by 1.037 equals $ per MMBtu
$ per Mcf divided by 10.37 equals $ per therm
$ per MMBtu multiplied by 1.037 equals $ per Mcf

The heat content of natural gas may vary by location and by type of natural gas consumer, and it may vary over time. Consumers and analysts should contact natural gas distribution companies or natural gas suppliers for information on the heat content of the natural gas they supply to their customers. Some natural gas distribution companies or utilities may provide this information on customers’ bills.

Last updated: June 17, 2020 by EIA.