This Re-Emerging American Shale Play Is Perfectly Positioned for LNG Exports

The natural gas industry and most investors had left the Haynesville Shale for dead. The economics of the natural gas-rich shale play just aren't as good as the Marcellus in an environment where gas prices were low. The economics, however, are starting to change as costs drop and gas prices rise. However, that's not the real reason that top Haynesville Shale drillers such as Chesapeake Energy (NYSE: CHK  ) , EXCO Resources (NYSE: XCO  ) , and Freeport-McMoRan (NYSE: FCX  ) are growing more excited by the re-emergence of the Haynesville Shale. Instead, these companies are interested in its potential to supply the growing number of export facilities being built along the Gulf Coast.

The Haynesville Shale is loaded with natural gas. Chesapeake Energy estimates that it has 10 trillion cubic feet equivalent of net recoverable resources in that asset. Meanwhile, Freeport-McMoRan thinks its position holds 5 trillion cubic feet equivalent of recoverable natural gas. To put that into perspective, those two companies could produce enough natural gas to meet the energy needs of 15 million U.S. households for 15 years. That said, a lot of that gas won't be heating American homes as this shale play couldn't be more perfectly positioned for the export market, as the following map shows.

Source: Chesapeake Energy Investor Presentation (link opens a PDF)

To help investors gain a better understanding of the Haynesville Shale as well as the companies that are perfectly positioned to profit from its reemergence, I created the following slideshow, which details the positions of Chesapeake Energy, EXCO Resources and Freeport-McMoRan as well as overviews the LNG export facilities that should be coming online through the end of the decade. 

OPEC is absolutely terrified of this game-changer
OPEC really doesn't care about American natural gas. However, there is an energy game-changer that has it absolutely terrified. You can learn more in an exclusive, brand-new Motley Fool report where we reveal the company we're calling OPEC's Worst Nightmare. Just click here to uncover the name of this industry-leading stock.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2986689, ~/Articles/ArticleHandler.aspx, 9/5/2015 12:08:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Matt DiLallo

Matthew is a Senior Energy and Materials Specialist with The Motley Fool. He graduated from the Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries:

Today's Market

updated 2 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:01 PM
CHK $7.27 Down -0.17 -2.28%
Chesapeake Energy CAPS Rating: ****
FCX $9.71 Down -0.42 -4.15%
Freeport-McMoRan C… CAPS Rating: ****
XCO $0.79 Down -0.17 -18.12%
EXCO Resources, In… CAPS Rating: ***