Strategic U.S. Gas Basin Positioned for Increased M&A Activity                                                                          

HOUSTON, May 1, 2025:  Energy Advisors Group (“EA”) has released a 51-page study on the Appalachian Basin, covering Pennsylvania, Ohio, and West Virginia. The region produces ~35.1 Bcfpd of natural gas and ~153,000 Bopd of oil supported by ~35 active rigs. 

“Despite takeaway constraints, producers benefit from stronger gas prices and cost discipline,” said Brian Lidsky, EA’s Director of Research. “With some breakevens near $2/MMBtu, the region’s vast resources are strategically important to our nation’s goals of energy independence, growth of LNG exports and A.I. leadership requiring large data center buildout.” 

 

A&D Momentum Expected to Accelerate

EQT is leading consolidation with its $1.8 billion acquisition of Blackstone-backed Olympus Energy (28% cash, 72% stock), adding 500 MMcfpd and midstream assets. Noteworthy, the large stock component is viewed as a vote of confidence for EQT’s ability to create upside through its fully vertically integrated model and potentially providing a reliable gas supply to data centers along the industrial corridor east of Pittsburgh. This follows its March 2024 merger with Equitrans Midstream and subsequent $4.75 billion in asset sales, including a $1.25 billion NonOp sale to Equinor and a $3.5 billion midstream JV with Blackstone Credit.

 

Other notable deals include NGP and Pearl-backed Infinity Natural Resources’ IPO (January 2025 implying a $1.2 billion valuation) and CNX’s $505 million bolt-on of private APEX II (backed by Carnelian Energy Capital). More private equity backed players like Ascent Resources and Encino Energy may pursue IPOs or sales. Room for further consolidations remains high with 900+ operators in the basin.

 

Multiple Plays, Operators and Low Costs

Marcellus and Utica gas plays dominate, with the top 15 operators bringing on 86% of the 4,926 wells since 2020. Leaders in 2024 are EQT (150 wells online), Expand (72 wells), Encino (61 wells), Ascent (57 wells) and Antero (51 wells). 

 

In Ohio’s developing Utica oil window, EOG Resources (~500,000 acres) is ramping up from 1 to 2 rigs in 2025 targeting F&D costs of $6 to $8 per BOE. Utica oil development is advancing more quickly towards lower well costs and better geological predictability compared to the early stages of the Eagle Ford.

 

Strategic Supply Role Amid Constraints

Appalachia supplies ~30% of the nation’s natural gas and holds vast resources. Pipeline takeaway is nearly full until at least late 2027. New projects like reviving the 650 MMcfpd Constitution Pipeline and Boardwalk’s 2.0 Bcfpd expansion are under discussion. In the meantime, Appalachia gas is expected to backfill Northeast and Midwest demand and support the growing energy needs of the PJM electrical grid to supply power for data centers where Amazon Web Services is a major customer.

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To receive this EA Basin Perspective Series report, visit energyadvisors.com and contact us.

About Energy Advisors Group

Energy Advisors Group is a leading provider of global oil and gas divestment services. The firm and its partners have worked on over 1,000 assignments and advised on over $100 billion in transactions for over 400 clients.

 

Contacts: 

Brian Lidsky
Director of Research
713-600-0138
blidsky@energyadvisors.com

Blake Dornak 
VP, Marketing 
713-600-0123 
bdornak@energyadvisors.com