Insight
Will higher prices spur a gas drilling rebound?
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The worst days appear to be over for North American gas producers. Cash prices are up $2/mmbtu since this time last year, storage inventories are back in neutral territory, and for the first time since late-2011 the NYMEX curve offers producers a chance to lock in prices above $4/mmbtu. Last year's gas and NGL prices damaged producer balance sheets, but cash flows are improving. At current market prices, lean-gas plays like the Haynesville Core and Fayetteville offer returns above 15%, and...
Table of contents
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Executive Summary
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Gas drilling rebound, a myth or reality?
- Relative returns-key consideration for capital allocation
- Key companies to watch
- Key risks to a gas rig rebound
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Gas drilling rebound, a myth or reality?
Tables and charts
This report includes the following images and tables:
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Chart 1. Expected average price of a new gas rig development vs. currently active gas rigsChart 4. Percent of low-cost gas acreage vs. gas development focusTable 1. Natural gas rig counts and stated gas price for increased gas development for key companies
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Chart 5. Rig fleet average 6-month productivity (new drilled volume)Chart 2. Returns for select Mid-Continent playsChart 3. Returns for key plays at $4/mmbtu
What's included
This report contains:
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