July 29, 2021
This chart shows the Henry Hub full-cycle cost by basin and by cost component. The lowest full-cycle costs are realized at Haynesville at 2 USD/Mcf and the highest is Arcoma at 6.60 USD/Mcf; the average full-cycle cost is just over 4 USD/Mcf.
Operating costs and F&D costs combined are the largest components representing over 50% of the full-cycle costs. About 15% can be attributed to royalties & taxes and overhead. Additionally, the full-cycle costs reflect a 15% producer return as well as the price differential to Henry Hub.
Net Full-Cycle Cost by Basin at Henry Hub
This chart shows the Net full-cycle costs by basin at Henry Hub taking into account the liquids uplift revenue (the full-cycle costs from the first chart above are adjusted to reflect this liquids uplift). The net full-cycle costs across all basins range from 1.94 USD/Mcf to 5.18 USD/Mcf. Some basins (Haynesville, Marcellus NE PA, Utica East, and Piceance) have no, or little, liquids production whereas liquids rich basins (Duvernay, Eagle Ford, and Utica West) realize 1.60-2.00 USD/Mcf in liquids uplift revenue to help offset a portion of the full-cycle costs.