With the basin’s proximity to Gulf Coast LNG facilities in northwestern Louisiana and northeastern Texas rig counts are at 5 year lows. Production stabilized around 11 bcfd since mid24, down from nearly 15 bcf at its high in summer23.
- Rigs aren’t deployed despite prices being “well above breakeven costs” of $2.00-2.50 mmcf, writes NGI. (Breakeven cost citing an NGI publication from Nov24)
- Haynesville is more costly per mmcf compared to other production plays, but benefits from its close location to the fastest growing demand market for LNG
- In 2022 producers responded, increasing their Haynesville drilling when the year’s average Henry Hub price was $6.425 mmcf.
- Cal26 is currently priced at $4.40 and Cal27 at $3.89, which may not be enough to induce higher production in the play