Northeast supply and price outlook: decoding the latest from the Marcellus and Utica

Key findings on the Marcellus, Utica, and Northeast gas and NGL markets: Well performance is up and costs are down, reducing breakevens by $0.60/mmbtu on average Short-term price weakness holds back drilling recovery, but well backlog leads to strong production growth NGL pipeline and ethane cracking buildout will support rich-gas drilling recovery by 2018 Latest well performance trends suggest new gas pipelines will be needed by 2020 Additional analysis in this insight: Marcellus and Utica drilling and production outlooks Changes in per-well estimated ultimate recoveries (EURs) by sub-play Northeast cost of supply curve Gas and NGL infrastructure additions: volume, direction, and timing Destination markets for Northeast supplies: how pipeline tariffs are changing, and risks in these markets (such as Transco Z5, Chicago, MichCon, Dawn, Henry Hub) When next gas pipelines will be required, and which destination looks most likely based on project costs and market risks