PA IFO 2Q25: Production Up 9%, Drilling Up 67%, Spot Price Up 61%
Yesterday, the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for April through June 2025 (full copy below). There were 105 new horizontal wells spud (drilled) in 2Q25, a huge increase of 42 wells (+67%) compared to 2Q24. Natural gas production volume was 1,954 billion cubic feet (Bcf) in 2Q25, up 162 Bcf (+9%) from 1,792 Bcf produced in 2Q24. The average Pennsylvania spot hub price was $2.38, an increase of $0.90 (+61%) from the prior year. All in all, it was a great second quarter for the PA Marcellus. Read More “PA IFO 2Q25: Production Up 9%, Drilling Up 67%, Spot Price Up 61%”
U.S. natural gas futures rose for a sixth consecutive session, with production lower, LNG feedgas flows holding up, and the weather forecast calling for higher temperatures. The NYMEX “front month” futures contract for October settled up 1.8% at $3.064/MMBtu. Traders think that the price will move in the upward direction for a while (let’s hope so). However, we aren’t out of the woods just yet. As for the physical spot price of natural gas, the Henry Hub spot price yesterday closed at $2.895, up 27 cents from the previous day. A very nice bump. What about the spot price around the Marcellus/Utica? 
Range Resources sunk the very first Marcellus well back in 2004. It was the beginning of the shale revolution in the northeast. Range CEO Dennis Degner spoke at the recent Hart Energy DUG Appalachia Conference in Pittsburgh (August 27th). He discussed driving sustainable growth in the Marcellus/Utica region. The number one way to do that? More pipelines. But what about the coming Constitution Pipeline that will flow another 660 MMcf/d of Marcellus molecules out of northeastern Pennsylvania into New York and beyond? 
On Tuesday, the Pennsylvania Department of Environmental Protection (DEP) provided an update on the cleanup of the spill from the closed Eureka Resources frack wastewater treatment facility in Williamsport (Lycoming County), PA. On August 17, Eureka’s Second Street facility (one of the three previously operated by Eureka) leaked some of its stored untreated wastewater, which ended up in the nearby Susquehanna River via a storm drain (see 
Last week, we told you that EQT Corporation announced it had contracted with Sempra’s Port Arthur LNG Phase 2 project in Jefferson County, Texas, to buy 2 million tonnes per annum (MTPA) of LNG from the facility for a 20-year term (see 
Earlier this year, a video circulated on social media featuring a Biden EPA political appointee talking about “tossing gold bars off the Titanic,” intentionally rushing to get billions of tax dollars out of the agency before Inauguration Day. The EPA’s new sheriff, Lee Zeldin, located $20 billion of those gold bars sitting at a Citibank bank account (see 
In May, pipeline giant Williams filed a 246-page request with the Federal Energy Regulatory Commission (FERC) to expedite the reissuance of a certificate for the Northeast Supply Enhancement (NESE) project, a billion-dollar-plus project designed to increase Transco pipeline capacity and flows of Marcellus gas heading into New York City and other northeastern markets (see 
Coming out of left field, Enbridge (based in Canada, owner of significant Marcellus/Utica pipeline assets) announced yesterday that it had reached a final investment decision (FID) on two new pipeline projects, one of which will flow an additional 75 million cubic feet per day (MMcf/d) of Marcellus/Utica molecules through the Algonquin Gas Transmission pipeline throughout New England and the northeast. The project is called the Algonquin Reliable Affordable Resilient Enhancement (AGT Enhancement) project and is estimated to cost $300 million for “system upgrades within, or adjacent to, existing rights-of-way.” 
Eureka Resources and its now shuttered three frack wastewater treatment plants continue to be under the microscope of the Pennsylvania Department of Environmental Protection (DEP). In August, one of the three facilities, located in Williamsport, PA (Lycoming County), leaked some of its stored untreated wastewater, which ended up in the nearby Susquehanna River via a storm drain (see 
On Oct. 1, 2024, Chesapeake Energy announced that its buyout of and merger with Southwestern Energy in a $7.4 billion deal had been completed (see 
Eastern Gas Transmission and Storage (EGTS), a wholly owned subsidiary of Berkshire Hathaway Energy Company (Warren Buffett’s company), filed a new project with the Federal Energy Regulatory Commission (FERC) in July (see 
In August 2025, the United States achieved a brand new record high in liquefied natural gas (LNG) exports, exporting 9.33 million metric tons—surpassing April’s previous record of 9.25 million and July’s 9.1 million—as plants returned from maintenance and Venture Global’s Plaquemines facility expanded output. Plaquemines, a 27.2 MTPA plant that began operations in December 2024, contributed 1.6 million tons, or 17% of the total, and is expected to be fully operational in September. Europe took 6.16 million tons (66%, up from 58% in July) amid lower storage levels, while exports to Asia fell to 1.47 million tons. Egypt imported 0.57 million tons, and Latin America’s imports dropped to 0.69 million tons, with 0.37 million tons unallocated. 
Two weeks ago, the Baker Hughes U.S. rig count resumed a downward trend, which continued last week. The count lost another two rigs to end the week at 536. The count has been down (bleeding) 16 of the last 18 weeks. Fortunately, the Marcellus/Utica count has remained constant for the past six weeks, at a combined 36 active rigs. PA operated 18 active rigs. OH ran 11 rigs. And WV operated 7 rigs. Twenty-four rigs targeted the Marcellus and 12 rigs targeted the Utica last week. The overall downward trend in the national count is due to a slowdown in oil-focused drilling, although last week’s figures reversed this trend. Baker Hughes said oil rigs rose by one to 412 last week, while gas rigs fell by three to 119. 
The Iroquois Gas Transmission’s Enhancement by Compression (ExC) project will increase horsepower at three compression stations — two in New York and one in Connecticut — by an extra 125 MMcf/d, to flow more Marcellus/Utica gas into New York City and New England. The two NY compressor expansions include one in Dover and one in Athens. The CT compressor expansion is located in Brookfield. Another CT compressor will get minor upgrades (gas cooling, no extra compression) in Milford. The NY DEC approved the permits for the NY compressors with the condition that Iroquois pays a $1.5 million contribution to the “Disadvantaged Community Benefit Program” (see