Consolidating acrage mile2dating com

With weak commodity prices still around (though gas has been trading within

With weak commodity prices still around (though gas has been trading within

What do lower gathering costs mean in the bigger picture?

Let’s focus on another basin where Chesapeake announced restructured gathering costs, the Haynesville.

Chesapeake is one of the biggest producers in the Haynesville, and just last year they were able to renegotiate gathering rates in the Haynesville down, to realize cost savings of approximately

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.The Haynesville reduced scenario uses a

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.The Haynesville reduced scenario uses a [[

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

||

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

For some, this means exiting plays and consolidating acreage.

]].20 cent gathering cost compared to the old scenario.At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from [[

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

||

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

For some, this means exiting plays and consolidating acreage.

]].40-

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

||

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

For some, this means exiting plays and consolidating acreage.

.00/MMBtu just to get the gas to the southeast.However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.

.20 cent gathering cost compared to the old scenario.At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from [[

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

||

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

For some, this means exiting plays and consolidating acreage.

]].40-

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

||

With weak commodity prices still around (though gas has been trading within $0.25/MMBtu of $3 after 16 year lows of sub $2 gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

For some, this means exiting plays and consolidating acreage.

.00/MMBtu just to get the gas to the southeast.However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.

.20/Mcf.

This change in gathering costs raises an interesting question: did the reduction cause the Haynesville to become economically competitive with both the wet and dry regions of the Northeast?

Using BTU Analytics’ proprietary economics model, and a small tweak to gathering costs, the following shows how the Haynesville compares to the Northeast both before and after adjusting gathering costs.

.25/MMBtu of after 16 year lows of sub gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

.25/MMBtu of after 16 year lows of sub gas in March, April, and May of this year), operators are still trying to do everything they can to generate as much cash as they can.

For some, this means exiting plays and consolidating acreage.

consolidating acrage-8

What do lower gathering costs mean in the bigger picture?

Let’s focus on another basin where Chesapeake announced restructured gathering costs, the Haynesville.

Chesapeake is one of the biggest producers in the Haynesville, and just last year they were able to renegotiate gathering rates in the Haynesville down, to realize cost savings of approximately [[

What do lower gathering costs mean in the bigger picture?

Let’s focus on another basin where Chesapeake announced restructured gathering costs, the Haynesville.

Chesapeake is one of the biggest producers in the Haynesville, and just last year they were able to renegotiate gathering rates in the Haynesville down, to realize cost savings of approximately $0.20/Mcf.

This change in gathering costs raises an interesting question: did the reduction cause the Haynesville to become economically competitive with both the wet and dry regions of the Northeast?

Using BTU Analytics’ proprietary economics model, and a small tweak to gathering costs, the following shows how the Haynesville compares to the Northeast both before and after adjusting gathering costs.

||

What do lower gathering costs mean in the bigger picture?Let’s focus on another basin where Chesapeake announced restructured gathering costs, the Haynesville.Chesapeake is one of the biggest producers in the Haynesville, and just last year they were able to renegotiate gathering rates in the Haynesville down, to realize cost savings of approximately $0.20/Mcf.This change in gathering costs raises an interesting question: did the reduction cause the Haynesville to become economically competitive with both the wet and dry regions of the Northeast?Using BTU Analytics’ proprietary economics model, and a small tweak to gathering costs, the following shows how the Haynesville compares to the Northeast both before and after adjusting gathering costs.

]].20/Mcf.

This change in gathering costs raises an interesting question: did the reduction cause the Haynesville to become economically competitive with both the wet and dry regions of the Northeast?

Using BTU Analytics’ proprietary economics model, and a small tweak to gathering costs, the following shows how the Haynesville compares to the Northeast both before and after adjusting gathering costs.

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.

The Haynesville reduced scenario uses a [[

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.The Haynesville reduced scenario uses a $0.20 cent gathering cost compared to the old scenario.At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from $0.40-$1.00/MMBtu just to get the gas to the southeast.However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.

||

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.

The Haynesville reduced scenario uses a $0.20 cent gathering cost compared to the old scenario.

At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).

Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from $0.40-$1.00/MMBtu just to get the gas to the southeast.

However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.

Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.

]].20 cent gathering cost compared to the old scenario.

At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).

Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from [[

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.The Haynesville reduced scenario uses a $0.20 cent gathering cost compared to the old scenario.At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from $0.40-$1.00/MMBtu just to get the gas to the southeast.However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.

||

The above graphic shows the results, but needs to be examined carefully before reaching any conclusion about the ability of southeast gas to compete with northeast gas.

The Haynesville reduced scenario uses a $0.20 cent gathering cost compared to the old scenario.

At first glance, it may seem as though the Haynesville is just as competitive as the Northeast from a wellhead perspective, though lagging a bit behind the dry parts of the area (Appalachia NE).

Factoring in differentials would add relative strength to the Haynesville, given that stacked rates in the Northeast would lead to transportation costs of anywhere from $0.40-$1.00/MMBtu just to get the gas to the southeast.

However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.

Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.

]].40-.00/MMBtu just to get the gas to the southeast.

However, it is important to realize that this is a distribution, which means that it is more telling (and less resistant to change) for areas with a larger sample size.

Appalachia SW has nearly 10 times the number of wells in this sample than the Haynesville, which means additional wells in the Haynesville will have a stronger affect on shifting the distribution than additional wells in Appalachia SW.