This reemerging shale play is perfectly positioned for lng exports
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Transcript of This reemerging shale play is perfectly positioned for lng exports
According to the U.S. Energy Information
Agency, it holds 17.7 trillion cubic feet of
proven reserves.
That’s because the Haynesville Shale …
… is perfectly positioned to fuel natural gas exports. Source: Chesapeake Energy Investor Presentation
Chesapeake Energy
• 387,000 net acres in the Haynesville.
• Estimates those acres hold 10 trillion cubic feet equivalent of recoverable natural gas reserves.
NYSE: CHK
Chesapeake Energy
• One of the leading drillers in the play with 728 producing wells.
• Chesapeake Energy has at least 1,900 undrilled future well locations.
• Company operating 7-9 rigs in 2014, which are drilling wells more than million dollars cheaper than just last year.
Chesapeake Energy
• One of the leading drillers in the play, with 728 producing wells and average daily production of 495 mmcfe.
• Meanwhile, Chesapeake Energy has lots of running room, with at least 1,900 undrilled future well locations.
• The company is operating seven to nine rigs in 2014, which are drilling wells more than $1 million cheaper than just last year.
EXCO Resources
• 70,000 net acres in the Haynesville-Bossier.
• Currently 600 high-rate-of-return drilling locations.
• Up to 1,206 locations with higher gas prices.
NYSE: XCO
Photo credit: Flickr/Roy Luck
EXCO Resources
• One of the leading drillers in the play with 728 producing wells.
• Chesapeake Energy has at least 1,900 undrilled future well locations.
• Company operating 7-9 rigs in 2014, which are drilling wells more than million dollars cheaper than just last year.
EXCO Resources
• It spent $320 million to bulk up on its position in a deal with Chesapeake Energy last year.
• It reduced its drilling costs from $9.5 million in 2011 to $7.2 million at the end of last year.
• At current prices and pace, EXCO can drill for 14 years and earn a 20%-plus internal rate of return.
• As the price of gas moves up, so do EXCO’s drilling opportunities and returns.
Freeport-McMoRan Copper & Gold
• Estimates its resource potential in the Haynesville is about 5 trillion cubic feet equivalent of recoverable natural gas.
NYSE: FCX
Photo credit: Flickr/Andy Arthur
Freeport-McMoRan Copper & Gold
• Freeport-McMoRan acquired its Haynesville Shale position last year, when it bought Plains Exploration & Production.
• Its current focus is to hold acreage and manage the asset for cash flow.
• However, once gas prices improve, Freeport-McMoRan has 11,000-plus future locations that can be drilled.
Investor takeaway
All three companies have the potential for needle-moving growth if natural gas prices
improve as America begins to export gas.