Analysis: Pipeline projects will ease price problem for Appalachia natural gas producers

With much-needed pipeline projects to be completed this year and in 2016, oil and natural gas exploration and production companies in the Appalachia basin should finally start to get some relief from the price basis differentials for gas that have plagued the region, reports Seeking Alpha. The financial analysis site says that every producer in Appalachia, including Cabot, Range Resources, Antero Resources, Consol Energy, Gastar, Magnum Hunter, Rex Energy and Rice Energy “will benefit greatly as basis differentials shrink.” Seeking Alpha notes that a lack of pipelines has led to an oversupply of natural gas in Appalachia, causing prices at local distribution hubs and pricing points (e.g., Dominion South, Leidy and Tetco M2) to be well below Henry Hub prices. For more, read the full story.

Ohio, Pennsylvania, West Virginia