M-U Gas Driller Stocks Flying High Thanks to AI Data Centers
According to an article on the Fortune magazine website, “AI’s endless thirst for power is driving a natural gas boom in Appalachia—and industry stocks are booming along with it.” It looks like the roles are reversing. For all of oil and gas history, oil has been the belle of the ball, the more sought-after hydrocarbon. A change is happening, at least in places like the Marcellus/Utica, where natural gas is the more sought-after commodity. And because of that, the stock price for companies that focus on gas drilling is soaring. The market capitalization (stock value times the number of outstanding shares) for M-U companies has soared 25% to 75% over the past 12 months. Wow! Read More “M-U Gas Driller Stocks Flying High Thanks to AI Data Centers”
For the week of July 28 – August 3, the number of permits issued to drill new wells in the Marcellus/Utica more than doubled from the previous week. There were 34 new permits issued across the three M-U states last week, 20 more than the 14 issued two weeks ago. The Keystone State (PA) issued 15 new permits. Both EQT and Range Resources received six permits each for single well pads in Westmoreland and Washington counties, respectively. Expand Energy received three permits for a pad in Bradford County. 
Ascent Resources, founded as American Energy Partners by gas legend Aubrey McClendon, is a privately held company focusing 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and one of the largest natural gas producers in the U.S. The company issued its second quarter 2025 update yesterday. Net production for the quarter averaged 2,034 MMcfe/d (2.0 Bcfe/d), consisting of 1,738 MMcf/d of natural gas, 13,033 bbls/d of oil, and 36,385 bbls/d of natural gas liquids (NGLs), putting liquids at 15% of the overall production mix for the quarter. 
The parents of four children under the age of 18 (from three families) filed a lawsuit on their kids’ behalf against EQT subsidiaries EQT Production Company and EQT XL Midstream Operating, claiming that emissions from a nearby compressor station and nearby shale wells operated by EQT have led to severe health-related problems for the kids. The families used to live in the rural hamlet of Knob Fork in Wetzel County, WV. They all have since moved. The lawsuit seeks unspecified damages and money for ongoing monitoring of the kids’ health. 
Gulfport Energy is the third-largest driller in the Ohio Utica Shale (by the number of wells drilled). The company emerged from bankruptcy four years ago with a new board and new management in May 2021 (see 
Coterra Energy, formed by the merger of Cabot Oil & Gas (drills for natural gas in the Marcellus) and Cimarex Energy (drills for oil in the Permian and Anadarko basins), issued its second quarter 2025 update yesterday. Two things stood out for us: (1) A group of Dimock wells that came online in December are superstar performers, and (2) while resurrecting the Constitution Pipeline project is “top of mind” for the company, that project is taking a back seat to another Williams pipeline project right now. 
Two days ago, MDN brought you the news confirming that Shell is looking to sell all or part of its Beaver County, PA, ethane cracker plant operation (see 
Last November, three of five supervisors in Cecil Township (Washington County), PA, voted to ban all new fracking in the town via a new setback (distance from well to nearest structure) requirement of 2,500 feet (see 
Yesterday, MDN brought you a review and summary of National Fuel Gas Company’s (NFG) latest quarterly update (see 
National Fuel Gas Company (NFG), headquartered in Buffalo, NY, is the parent company for Marcellus/Utica driller Seneca Resources and the parent of midstream company NFG Midstream (and subsidiary Empire Pipeline). Last week, NFG issued its latest quarterly update, which is the company’s fiscal 3rd quarter (but everyone else’s 2nd quarter). The update was loaded with good news for Seneca and NFG’s midstream sector. We learned that the company has been retained to build a 7-mile pipeline expansion off the company’s Line N system in Western PA, called the Shippingport Lateral Project, to feed natural gas to the Shippingport Power Station, announced in July (see 
Back in March, the Wall Street Journal reported that Shell is “exploring a potential sale of its chemicals assets in Europe and the U.S.,” which includes the recently completed Monaca (Beaver County, PA) ethane cracker complex (see 
Antero Resources, which is 100% focused on the Marcellus/Utica with over 500,000 net acres under lease (and the largest M-U driller in West Virginia), issued its second quarter 2025 update yesterday. The company reports net production in 2Q25 averaged 3.43 Bcfe/d, up ever-so-slightly from 3.42 Bcfe/d in 2Q24. Natural gas production averaged 2.23 Bcf/d, a 4% increase from the same period in 2023. Liquids (NGLs & oil) production averaged 200 MBbl/d, a 6% decrease from the year-ago period. A little less liquids, a little more gas. Antero achieved a net income of $157 million and adjusted net income of $110 million. Free Cash Flow was $262 million. For the full year, Antero increased production guidance to 3.4 to 3.45 Bcfe/d, driven by strong well performance. 
Expand Energy, formed by the merger of Chesapeake Energy and Southwestern Energy, is the largest natural gas producer in the U.S. with approximately 1.9 million leased net acres. The company operates in three distinct regions: Northeast Appalachia (Pennsylvania), Southwest Appalachia (mostly West Virginia, but also Pennsylvania and Ohio), and the Haynesville (Louisiana). The company issued its second quarter 2025 results yesterday. In 2Q25, Expand operated an average of 11 rigs, drilling 49 wells and turning 59 wells in line to sales, resulting in net production of approximately 7.20 Bcfe per day (92% natural gas). Notably, the company has cut $100 million from its capital budget this year, yet says it will maintain production at current levels.