Moody’s Investors Service has just published a new 11-page (5,231 word) report titled, “US Exploration and Production: Marcellus’ Natural Gas Bounty Rewards Early Adopters.” Pricetag? $550 smackeroos. A bit too pricey for us for an 11-page report! However, Moody’s has kindly shared some of the high-level conclusions they reach in the report, including this one: “Exploration and production (E&P) companies that extract natural gas from the Marcellus Shale play will benefit more than natural gas producers elsewhere in North America, and their advantage isn’t likely to change anytime soon.” We agree.
The report says early movers like E&P companies including Chesapeake, Southwestern and Anadarko, and midstream companies like MarkWest and Sunoco Logistics, have a distinct and ongoing advantage. Here’s a bit more from their summary of the report in which they point out the Marcellus is not like any other shale play: