Haynesville Shale Assets Hit the Block as Natural Gas Prices Rally

Companies eager to produce gas as a cleaner alternative to oil, like Chevron Corp., have also expressed interest in the Haynesville Shale.

Jessica Resnick-Ault, Reuters

Private equity firms are looking to sell companies and land they own in the second-largest U.S. natural gas producing formation, where values have surged along with gas prices worldwide and booming U.S. exports of LNG.

So far this year, the Haynesville formation in Northwest Louisiana and East Texas has had four deals totaling $1.65 billion, according to Andrew Dittmar, director at Enverus. Next month, the Haynesville is expected to produce a record 13.6 Bcf/d, about 15% of U.S. shale gas output.

U.S. gas futures recently touched 12-year highs, and prices have skyrocketed even more in Europe and Asia, where buyers are desperate to lock down supply to deal with growing needs for power.

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