Marcellus play-ers on top? Moody's thinks so.

By Jaclyn Townsend
Marketing, MicroSeismic, Inc.

In a recent report Moody’s said that natural gas producers in the Marcellus shale will benefit more than producers elsewhere in the US because of various promising conditions even if gas prices weaken.

"Technological advancements since the early 2000s have allowed US natural gas producers to reshape the industry largely through the development of the Marcellus," says Associate Analyst Michael Sabella, the author of the study. "The Marcellus has emerged as one of the most profitable regions in the US for producing natural gas, so even if prices return to the weak levels of 2012, producers there will be rewarded."

The optimism comes directly from the large producing wells in the northeast section of the 104,000-sq. mile play conveniently located near major markets in New York, Pennsylvania, Ohio and West Virginia, along with an increase in capital in the southwest section of the play which is rich in natural gas liquids.

What’s even more interesting is that the massive totals include gas from an area where a ban on hydraulic fracturing has prevented E&P companies from obtaining some of the more than 40 tcf of gas equivalent estimated recoverable reserves lying beneath the states.

So, even though the Marcellus boom has collided with the decline in natural gas prices, major Marcellus players and big spenders  - all of which entered the play early during a weak natural gas price environment—have and will continue to see huge profits, Moody’s states. As these midstream operators begin to increase production they will also begin to see a boost in EBITDA and cash flow.

MicroSeismic, Inc. continues to make its mark in the already profitable play. With over 1,100 stages already monitored in the Marcellus, and more to come, MicroSeismic’s commitment to our customers is simple - to provide high definition microseismic monitoring and state-of-the-art completions evaluation services. By doing so, we are able to continue to help our customers maximize production and increase revenue.

Jaclyn