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Will higher prices spur a gas drilling rebound?

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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...

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Table of contents

Tables and charts

This report includes 6 images and tables including:

Images

  • Chart 1. Expected average price of a new gas rig development vs. currently active gas rigs
  • Chart 4. Percent of low-cost gas acreage vs. gas development focus
  • Chart 5. Rig fleet average 6-month productivity (new drilled volume)
  • Chart 2. Returns for select Mid-Continent plays
  • Chart 3. Returns for key plays at $4/mmbtu

Tables

  • Table 1. Natural gas rig counts and stated gas price for increased gas development for key companies

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