Executive Summary
Appalachian production declined over the last twelve months due to reduced drilling activity, driven by low natural gas prices and high storage inventory. Consequently, Appalachian E&P stocks generally saw year-over-year price drops across the board.
Despite recent setbacks, there is optimism for 2025. EQT CFO Jeremy Knop mentioned that the Mountain Valley Pipeline (MVP) ramp-up should support Appalachian differentials. EQT also regained ownership of Equitrans Midstream Corp., operator of MVP’s 2 Bcf/d pipeline, key for future gas demand. Additionally, VettaFi Research highlighted that MVP’s start-up is easing takeaway constraints. Meanwhile, EOG Resources is making promising oil discoveries in Ohio’s Utica shale, with results competitive to the Permian basin