Fueling Deals | M&A Trends in Gas-Fired Generation
Natural gas power generation M&A has seen a sharp resurgence in 2025, fueled by outsized load growth expectations, elevated power prices and rising barriers to new project development.
Gas players approach weak pricing with operational flexibility
Natural gas prices are setting up E&P companies operating in gas plays for a challenging 2024, maybe more challenging than they expected. On March 20, the 12-month strip settled at $2.71/MMBtu, down from more than $3.00/MMBtu when the year started, and the front-month settled at $1.70/MMBtu. The warm winter and growing associated gas production have pushed gas storage volumes 41% above the five-year average and 21% higher than this time last year, at 2.33 Tcf as of March 15.