BTU Analytics - Montage Acreage Provides Southwestern Optionality in SW Appalachia

While many in the market have been focused on what consolidation will come in the major oil plays as a result of the pandemic-driven low oil prices, such as from the Chevron-Noble acquisition, gas producers have also made moves to better position themselves in a low liquids price environment. Most recently, Southwestern announced that it would acquire Montage Resources in an all-stock deal. In addition to making the combined entity the third largest Northeast producer, the Montage assets give Southwestern greater optionality in its SW Appalachia acreage to choose between dry gas acreage when liquids pricing is low and wet gas acreage when liquids pricing is high. This optionality is key at a time when liquids pricing is expected to remain pressured as the world recovers from the COVID-19 pandemic and its resulting impacts to hydrocarbon demand. Today’s energy market commentary will utilize BTU Analytics E&P Positioning Report to analyze Southwestern and Montages acreage and the flexibility afforded to Southwestern by the acquisition.

https://btuanalytics.com/shale-production/montage-acreage-provides-southwestern-optionality/