Mercer Capital’s Value Focus: Exploration & Production newsletter provides an overview of the industry through supply and demand analysis, commodity pricing, and public market performance.

Appalachian production rates improved modestly in the twelve-month period through September 2025 supported by steadier drilling activity and incremental takeaway capacity following the mid-2024 start-up of the Mountain Valley Pipeline (“MVP”). The basin’s 6% year-over-year production increase came despite subdued natural gas prices for much of the year and ongoing supply competition from other U.S. shale regions. Activity levels were sustained as operators balanced capital discipline with expectations for gradually tightening fundamentals heading into 2026.

EQT, Range Resources, and other basin-focused producers continue to benefit from the MVP’s full operational ramp, which has begun to narrow regional basis differentials and improve flow reliability to downstream markets. Rising data-center build outs in the region provide incremental demand for Appalachian gas and the project’s impact on realized pricing and takeaway flexibility is expected to remain a positive factor through next year.

Meanwhile, exploration in the Utica’s oil window continues to attract interest. EOG’s acquisition of Encino increases its optionality across both oil and gas windows and reinforces its scale in the Utica play. These developments provide the basin with a potential source of long-term diversification beyond its core gas focus.

Overall, the Appalachian basin enters late-2025 on firmer footing than a year ago, characterized by stable production, recovering equity performance, and improving infrastructure fundamentals. Continued progress on export capacity and incremental LNG demand should provide a constructive backdrop for basin economics heading into 2026.

Exploration & Production Newsletter

Region Focus: Appalachia

Also in the newsletter:

• • Oil and Gas Commodity Price Update
  • Macro Update
  • Industry M&A Activity
  • Public Company Performance
  • Production Update
  • Rig Counts

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