Executive Summary
Appalachian Basin production remained relatively stable over the review period despite a notable decline in drilling activity, supported in part by the completion of previously drilled wells. The basin’s modest production growth contrasted with the much stronger gains in the Haynesville, where drilling activity expanded significantly amid expectations for growing Gulf Coast LNG export demand. While both basins are heavily weighted toward natural gas, differences in infrastructure access and development economics contributed to their differing levels of activity.
Natural gas prices experienced considerable volatility over the review period, contributing to fluctuations in Appalachian public company share prices and ultimately year-over-year (“YoY”) stock price declines across the comp group. Nevertheless, Appalachia’s ability to sustain production with fewer active rigs demonstrates the operating flexibility of the basin’s producers. Continued growth in LNG export demand and domestic natural gas consumption should provide a constructive backdrop for the region, although commodity pricing and pipeline takeaway capacity will remain important considerations for future development activity.
Also in this Issue
Oil and Gas Commodity Prices
Region Focus: Appalachia
Production and Activity Levels
Financial Performance
Market Valuations & Transaction History
Appalachian Basin M&A Update
Selected Public Company Information
Production Update
Rig Count