Peer Strategy

Hurting US Gas Firms Shift to LNG Exports, AI Centers

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The latest wave of consolidation in the US shale patch has added a few new names to the list of top domestic onshore gas producers. But as low commodity prices bite, the song remains the same: curtailments, deferred drilling and fracking activity — known as completions — and efficiency improvements. However, in contrast to pessimism during previous downcycles, there is a sense of optimism in the sector. Although the main US benchmark Henry Hub notched $1.44 per million Btu last week — almost half the 2019 price — the new corporate model that prioritizes financial discipline and investor returns has also made many independents better able to withstand a weak price environment. As they navigate ongoing price pressure, US gas operators are also looking to better times ahead, when a combination of additional US LNG export capacity, increased power generation and more artificial intelligence (AI) data centers is expected to boost US gas demand. Below we look at the top five public independent US natural gas producers.

Topics:
Gas Pipelines, Gas Supply, Gas-Fired Electricity, Liquefaction, LNG Projects, NGL/LPG, Supply & Demand , Gas Prices, Corporate Strategy
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