The great 2023 Haynesville rig release is upon us

byErin Faulkner

Sub-$3.00/MMBtu Henry Hub prices are not good for the returns of Haynesville operators, especially in an inflationary environment. Rig levels in the Ark-La-Tex region at the start of the year seemed unsustainable, but remained stubbornly high in Q1, according to Enverus Foundations data. The rig count in the region peaked at 96 in January and averaged 90 in Q1. In Q2, the declines have picked up pace with the activity levels averaging 79 rigs in April and 71 rigs in May. As of June 11, there are 65 rigs running in the region, down by 31 rigs from the peak.

By Louisiana parish or Texas county, the most notable declines were in Red River Parish (down by seven rigs to five), DeSoto Parish (down by five rigs to 11) and Harrison County (down by five rigs to four). Paloma Natural Gas went from running as many as five rigs at the beginning of the year to zero by the end of April. ExxonMobil has also frozen its drilling program, dropping its two rigs by early April. Southwestern Energy was running as many as 10 rigs earlier this year, but has dropped three rigs since its peak. Chesapeake Energy, Comstock Resources, Tellurian Inc. and GHA Barnett have dropped two rigs each.

In addition, the number of Haynesville wells completed each month has fallen every month this year and the DUC inventory is on the rise, according to the EIA. January had the highest Haynesville completion activity YTD at 140, and the monthly tally had fallen 24% by May when 107 were completed. The DUC total of 761 in May is a record for the play since the EIA started keeping DUC information in December 2013 and is up by 165 from a year earlier.

BP’s first completion in Sabine Parish, LA, delivered an IP24 of 35 MMcf/d, the company’s fifth-highest in the Haynesville. Click for more (available to Enverus Intelligence Publications subscribers)!

About Enverus Intelligence Publications
Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.

Erin Faulkner

Erin Faulkner

Erin Faulkner is a senior editor at Enverus and has been covering the U.S. upstream industry for more than 10 years. She is a graduate of Creighton University.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

Enverus Blog
Power and Renewables
ByKatherine Paton-Ilse

In an era where electricity demands continue to escalate, the importance of a reliable and efficient electrical grid cannot be overstated. Transmission lines form the backbone of the power grid, crucial for transmission and distribution of electricity from power generation...

ByAndrew Dittmar

In a year that began with lackluster minerals-focused M&A activity, there were signs of life in Q2 with the first transaction exceeding $10 million as Kimbell Royalty Partners acquired MB Minerals for $143 million. Compared to operating company M&A, even this...

Enverus Blog - Analyst takes: 6 January energy trends you need to know
ByErin Faulkner

Over the last few quarters, executives at U.S. upstream operators have grown accustomed to analysts asking about cost inflation. It’s an inevitable part of every conference call. During the late July to mid-August earnings season for Q2, the question shifted...

Enverus Blog - Energy Transition Today: EPA jumpstarts EV uptake
Energy Transition
ByKevin Kang

Behind the meter (BTM) solar is a key factor in decreasing load in CAISO, especially in California where it has the most impact on annual demand. The state’s potential for nearly 195 GW of rooftop solar capacity exists, although its...

Enverus Blog - 3 price management capabilities to offset cost inflation
Energy Transition
ByKiana Cruz

Seismic surveys are a vital tool in the oil and gas industry. Effective use of seismic surveys allows industry professionals to identify prospects, assess potential resources, reduce risk and even quantify reserves – in short, to make well-informed decisions that...

Energy Transition
ByAlex Nevokshonoff

While we are still waiting for guidelines from the IRS regarding hydrogen incentives released with the Inflation Reduction Act (IRA) last year, it is clear that supportive policy must be in place for green hydrogen to compete in existing hydrogen...

Enverus Press Release - Breaking down the CCUS basins
Energy Analytics Energy Transition

Panel discussion with CCUS experts from Enverus EVOLVE Conference Introduction CCUS offers a promising solution to curb greenhouse gas emissions by capturing CO2 from industrial sources and power plants and storing it underground. CCUS has gained significant attention in recent...

Analyst Takes
ByChris Griggs

As we usher in the month of August, it’s an ideal moment for retrospection on the past month’s shifts and trends in the energy sector. Our proficient Enverus Intelligence® | Research (EIR) team has delved into critical trends and innovations,...

Energy Transition
ByCarson Kearl

The Vogtle Unit 3 nuclear reactor began its commercial operations at the end of July. Based in Georgia, the facility will provide clean electricity to the southeast U.S. for likely longer than the next half-century. This marks the first U.S....

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Get Energy Transition Research updates straight to your inbox by filling out the form below.

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert