Haynesville tempts gas operators

Bullish LNG export prospects on the Gulf Coast are driving M&A activity in the southern shale play

Appalachia may still dominate US gas production, but a wave of consolidation further south in the Haynesville has shown that operators see big opportunities in the Louisiana and east Texas shale play. Two major deals stand out over recent months. In early August, gas giant Chesapeake Energy shelled out $2.2bn on a merger with Haynesville peer Vine Energy. Two months before, Appalachian gas driller Southwestern Energy spent $2.7bn on its merger with Louisiana-based producer Indigo Natural Resources—the main rationale being diversified supply and access to the Gulf Coast. And for operators, the upstream and midstream incentives of switching to the Haynesville are clear. Consultancy Rystad Ener