Expand Energy CEO: Drillers Won’t Add New Production at $3.50 Gas
Expand Energy CEO Nick Dell’Osso was recently interviewed at the Goldman Sachs Energy, Clean Tech & Utilities Conference held in Miami, Florida, on Jan. 6. During the talk, Dell’Osso outlined Expand’s strategy following the merger of Chesapeake Energy and Southwestern Energy, emphasizing that even if natural gas prices reached the $3.50/MMBtu range, the company would remain disciplined and likely prioritize shareholder returns (such as dividends and buybacks) over aggressive production growth. With respect to the price of gas, he said this of producers in general: “But if we continue to have pricing that hangs around $3.50, I just don’t think you have a producer that is motivated for growth. I think the marginal breakeven for growth in this country is above $3.50.” Read More “Expand Energy CEO: Drillers Won’t Add New Production at $3.50 Gas”
Volatility is the watchword for new permits in the Marcellus/Utica. Three weeks ago, the combined count between Pennsylvania, Ohio, and West Virginia was a measly 8 new permits (see 
After a pathetic showing two weeks ago (just 8 permits), last week was a barnstormer—the most permits we’ve seen issued in a single week since we’ve been chronicling permits here on MDN. But, there’s a catch. Last week’s report for the combined three states shows 60 (!) permits issued, with 22 going to Pennsylvania, 24 to Ohio, and 14 to West Virginia. However, Ohio’s numbers are inflated because the Ohio Department of Natural Resources (ODNR) reported numbers last week that stretch back three weeks in time. You may recall Ohio didn’t issue permits for two weeks in a row. They actually issued permits but didn’t report them. So, this report includes 6 permits for the two missing weeks. Still, removing six from the total means 54 permits were issued last week, which remains a record high. Could the spike in the spot price for natural gas in the M-U be the reason? 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its highly dysfunctional and irresponsible counterpart, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals and consumptive use requests for responsible and safe shale drilling. The SRBC published a notice in the December 6 Pennsylvania Bulletin that the Executive Director of the SRBC approved and/or renewed 76 general water use permits from September 1 through October 31 for individual shale gas well drilling pads in Blair, Bradford, Cameron, Centre, Clearfield, Clinton, Elk, Huntingdon, Lycoming, McKean, Sullivan, Susquehanna and Tioga counties in Pennsylvania and one permit to withdraw water in Steuben County, New York. 
In Q3 2025, U.S. E&Ps (drillers) successfully leveraged rigorous cost-cutting and capital discipline to maintain stable earnings despite commodity price volatility. With lifting costs down 16% since mid-2022, producers offset revenue pressures through efficiency and consolidation. RBN Energy reports that performance diverged by sector in 3Q: oil-weighted producers saw earnings rise 19% on stabilized crude prices and reduced impairments, while gas-weighted peers suffered a 27% earnings slump due to lower realizations. Total production increased 4.7%, mainly driven by oil majors. Looking ahead to Q4, the outlook shifts; oil producers face headwinds as prices dip toward $60/bbl, while natural gas producers anticipate a strong finish fueled by winter demand and rising Henry Hub prices. 
Regional and national indicators are driving optimism in the Marcellus/Utica Basin, which currently supplies 31% of U.S. natural gas. Despite recent constraints from low prices and limited pipeline capacity, drillers like Infinity Natural Resources and Expand Energy now predict significant output growth coming in the new year. This resurgence is fueled by surging in-basin demand from AI data centers, major power plant conversions in Pennsylvania, and improved takeaway prospects, such as Boardwalk’s proposed Borealis pipeline to the Gulf Coast (see 
It’s time to revisit a topic we’ve covered many times before — philanthropy in the Marcellus/Utica region. Drillers and pipeline companies in the M-U region already contribute to the region through the generous lease bonuses and royalties paid to landowners. In addition to the billions that flow to landowners, M-U companies cumulatively donate millions of dollars to local communities and nonprofit organizations. Here’s the latest example of that in action: The Marcellus Shale Coalition (MSC) says its members (and their employees) have embraced this Thanksgiving season by giving back through food drives, volunteering at local charities, and supporting community initiatives. 
Marcellus/Utica natural gas production is rebounding in November, increasing by about 700 MMcf/d to an average of 35.5 Bcf/d recently, as drillers react to rising in-basin pricing and tightening regional fundamentals due to higher seasonal demand. This increase signifies an easing of the production shut-ins carried out during the third quarter when loose supply-demand dynamics pushed prices, which averaged $1.40-$2.97/MMBtu, to an average of below $2/MMBtu on more than a third of days. 
During the third quarter, Expand Energy, formed by the merger of Chesapeake Energy and Southwestern Energy in late 2024, significantly expanded its portfolio by acquiring 82,500 new acres across the Marcellus and Haynesville shale plays for approximately $235 million. The company added approximately 7,500 acres in the Marcellus in Ohio and West Virginia for $57 million, which can accommodate over 40 well locations. The larger acquisition involved 75,000 acres in the western Haynesville for $178 million, with the potential for over 200 locations. Expand, which produced 7.33 Bcfe/d (92% natural gas), reported strong financial results for the quarter, including nearly $3 billion in revenue and a profit of $547 million. The company produced 7.2 Bcfe/d in 2Q25. Expand is the largest natural gas producer in the country. 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its highly dysfunctional and irresponsible counterpart, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals and consumptive use requests for responsible and safe shale drilling. The SRBC published a notice in the October 11 Pennsylvania Bulletin that the commission voted to approve 11 water withdrawal requests related to shale gas development and two for gas-fired power plants.