Low Marcellus Break-Even Prices Keep Region #1 for Gas Production

The Marcellus Shale has a distinct advantage over every other gas-focused shale play in the country: It's WAY cheaper than anywhere else to produce gas in the Marcellus. It's called the break-even point, when a driller makes a profit after paying for expenses. The break-even in the Marcellus is *below* $2/Mcf (thousand cubic feet) for many drillers, including giants EQT and Expand Energy. Other gas-focused plays, like the Haynesville, cost a lot more---$3.50/Mcf or more for break-even. But then, the Haynesville is much closer to Gulf Coast LNG export facilities, so it costs much less to pipeline the gas. That's OK, the Marcellus has a geographic advantage, too.

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