Cabot Oil & Gas Corp. and Southwestern Energy Co. were the latest Appalachian operators to report weak price realizations in the second quarter, when pipeline constraints widened basis differentials in the Northeast.

appalachia prices

U.S. benchmark prices climbed during the period and have continued to move higher since, creating an even bigger gap with local prices in Appalachia, where pipeline maintenance and outages have suppressed returns. Cabot increased its differential guidance for the year, but sees an improving outlook. 

“We are optimistic about a strong improvement in local pricing in the second half of the year, driven by our expectations for continued strength in regional gas demand, flat production profiles across the Appalachian Basin and a significant reduction in storage...