In this monthly report we will analyze the latest developments in the major tight gas basins in the US, including the Marcellus, the Haynesville and the Utica. Here’s what we cover in this report: - Where does the horizontal rig count stand today? - How much natural gas is produced from horizontal wells in all tight basins? - What is the long-term tight gas outlook with current drilling activity? - Who are the top producers in the tight gas basins? - How do the Marcellus and the Haynesville compare in terms of well productivity? - Which large operators have the best (or worst) wells in the Marcellus?

1. Analytics
ShaleProfile Insights: May 6th, 2020
THE MAJOR TIGHT GAS BASINS
Including the Marcellus, the Haynesville and the Utica
May 6th, 2020

2. www.shalepro le.com1
In this monthly report we will analyze the latest developments in the major tight gas
basins in the US, including the Marcellus, the Haynesville and the Utica.
We will cover the following trends:
The horizontal rig count has sharply fallen in the major tight gas basins, from 140 in
April 2019 to 73 last week. Of these, 32 are in the Haynesville and 30 in the
Marcellus. In early 2011, there were 368 rigs drilling horizontal wells in these
basins.
www.shaleprofile.com1
Horizontal Drilling
1) Drilling activity
1- Where does the horizontal rig count stand today?
2- How much natural gas is produced from horizontal wells in all tight basins?
3- What is the long-term tight gas outlook with current drilling activity?
4- Who are the top producers in the tight gas basins?
5- How do the Marcellus and the Haynesville compare in terms of well
productivity?
6- Which large operators have the best (or worst) wells in the Marcellus?

3. The following dashboard gives an overview of the total gas production in all the US
tight oil & gas basins, through December 2019.
Since 2017, the growth rate increased to about 10 Bcf/d per year. By the end of
2019, 80 Bcf/d was produced by horizontal wells in the US.
2) Total gas production
www.shalepro le.com1 www.shaleprofile.com2
Total gas production
Top operators

4. We recently created an interactive dashboard in which the future tight oil & gas
supply can be simulated, based on the latest production and rig count figures and
assumptions on future changes in number of rigs and well/rig productivity.
You will find this "Supply projection" dashboard temporarily online on our website.
It is also shown here below:
According to the latest Baker Hughes rig count, in the final week of April there were
372 rigs drilling horizontal wells in the US tight plays. If drilling activity would stay
at this level, with no changes in future well productivity, our model shows that
long-term gas supply would gradually fall over time to around 60 Bcf/d, as shown in
the bottom chart.
3) Tight gas supply projection
www.shalepro le.com1 www.shaleprofile.com3
Tight gas supply projection

5. 4) Top producers
The natural gas production of the 10 largest operators in the Haynesville, the
Marcellus and the Utica can be viewed here:
We have recently developed an M&A mapping capability and you can now see that
EQT rose to the lead position, after its acquisition of Rice Energy. It produced 4.5
Bcf/d of natural gas in December 2019.
www.shalepro le.com1
www.shaleprofile.com4
Productivity Over Time
Well productivityTop producers

6. 5) Well productivity
The chart below visualizes the well performance of all the horizontal gas wells in the
Marcellus and the Haynesville. Only the 2016-2019 vintages are selected.
www.shalepro le.com1
www.shaleprofile.com5
Productivity Over Time
Well productivityWell productivity
As you can clearly see, initial well performance increased in both basins over these
years. However, the changes are much smaller once you normalize for the increase
in lateral lengths, which is possible in the Professional version of ShaleProfile
Analytics. Doing so will show that the Haynesville wells still clearly outperform wells
in the Marcellus. Interestingly, normalizing for proppants almost doesn't show any
change between the 2 basins and neither over this time frame.

7. 6) Well productivity ranking
The following dashboard sheds light on the question of which operators have the
best (and worst) performing wells in the Marcellus. The left side shows the location
of all the horizontal gas wells that were completed since 2010.
The wells are measured (and colored) by the cumulative gas recovered in the first 2
years (red is more productive).
www.shalepro le.com1
www.shaleprofile.com6
Productivity Over Time
Well productivity
Well productivity ranking
On the right side, you can find the ranking of all the operators in this area, with at
least 50 operated wells, by this metric. The thickness of the lines indicates the
relative number of wells included.
The three operators with the best performing wells (Cabot, Chief Oil & Gas and
Chesapeake) all operate in the north east of Pennsylvania. Antero, the number 4, is
only active in the southern part of the Marcellus in West Virginia.
In the professional version of our subscription service users can change the metric
that is used and also normalize for lateral length or proppants.

8. Want to further explore industry data?
You can directly request a free trial via Shaleprofile.com/trial to try out ShaleProfile Analytics
for 10 days.
All the graphs shown today come from our ShaleProfile Analytics service,
which is an online analytics platform filled with interactive dashboards that allow
you to explore the most recent shale oil & gas related data.
www.shalepro le.com1
www.shaleprofile.com7

9. ShaleProfile Insights: October 10th, 2019
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