Upload
the-motley-fool
View
6.020
Download
1
Tags:
Embed Size (px)
Citation preview
According to the U.S. Energy Information
Agency, it holds 17.7 trillion cubic feet of
proven reserves.
That’s because the Haynesville Shale …
… is perfectly positioned to fuel natural gas exports. Source: Chesapeake Energy Investor Presentation
Chesapeake Energy
• 387,000 net acres in the Haynesville.
• Estimates those acres hold 10 trillion cubic feet equivalent of recoverable natural gas reserves.
NYSE: CHK
Chesapeake Energy
• One of the leading drillers in the play with 728 producing wells.
• Chesapeake Energy has at least 1,900 undrilled future well locations.
• Company operating 7-9 rigs in 2014, which are drilling wells more than million dollars cheaper than just last year.
Chesapeake Energy
• One of the leading drillers in the play, with 728 producing wells and average daily production of 495 mmcfe.
• Meanwhile, Chesapeake Energy has lots of running room, with at least 1,900 undrilled future well locations.
• The company is operating seven to nine rigs in 2014, which are drilling wells more than $1 million cheaper than just last year.
EXCO Resources
• 70,000 net acres in the Haynesville-Bossier.
• Currently 600 high-rate-of-return drilling locations.
• Up to 1,206 locations with higher gas prices.
NYSE: XCO
Photo credit: Flickr/Roy Luck
EXCO Resources
• One of the leading drillers in the play with 728 producing wells.
• Chesapeake Energy has at least 1,900 undrilled future well locations.
• Company operating 7-9 rigs in 2014, which are drilling wells more than million dollars cheaper than just last year.
EXCO Resources
• It spent $320 million to bulk up on its position in a deal with Chesapeake Energy last year.
• It reduced its drilling costs from $9.5 million in 2011 to $7.2 million at the end of last year.
• At current prices and pace, EXCO can drill for 14 years and earn a 20%-plus internal rate of return.
• As the price of gas moves up, so do EXCO’s drilling opportunities and returns.
Freeport-McMoRan Copper & Gold
• Estimates its resource potential in the Haynesville is about 5 trillion cubic feet equivalent of recoverable natural gas.
NYSE: FCX
Photo credit: Flickr/Andy Arthur
Freeport-McMoRan Copper & Gold
• Freeport-McMoRan acquired its Haynesville Shale position last year, when it bought Plains Exploration & Production.
• Its current focus is to hold acreage and manage the asset for cash flow.
• However, once gas prices improve, Freeport-McMoRan has 11,000-plus future locations that can be drilled.
Investor takeaway
All three companies have the potential for needle-moving growth if natural gas prices
improve as America begins to export gas.