Alternatives

July 1, 2024

E&P Third Quarter 2024

Appalachian Basin

Executive Summary

Appalachian production declined over the last twelve months due to reduced drilling activity, driven by low natural gas prices and high storage inventory. Consequently, Appalachian E&P stocks generally saw year-over-year price drops across the board.

Despite recent setbacks, there is optimism for 2025. EQT CFO Jeremy Knop mentioned that the Mountain Valley Pipeline (MVP) ramp-up should support Appalachian differentials. EQT also regained ownership of Equitrans Midstream Corp., operator of MVP’s 2 Bcf/d pipeline, key for future gas demand. Additionally, VettaFi Research highlighted that MVP’s start-up is easing takeaway constraints. Meanwhile, EOG Resources is making promising oil discoveries in Ohio’s Utica shale, with results competitive to the Permian basin

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