August 2, 2021
Marcellus SW full-cycle costs at Henry Hub range from a low of 3.10 USD/Mcf for wells with an Initial Productivity (IP) greater than 18 MMcf/d to a high of 12.40 USD/Mcf for wells with an IP of under 3 MMcf/d. To help offset some of the full-cycle costs, there is liquids uplift providing 1.30-1.10 USD/Mcf in revenue at IP’s greater than 18 to under 3 MMcf/d.
Operating costs range from 1.26-1.50 USD/Mcf while royalties & taxes and overhead represent about 0.36 USD/Mcf. F&D costs range from 0.37-5.22 USD/MMcf and the 15% producer return ranges from 0.32-4.50 USD/MMcf. The Henry Hub differential is 0.84 Mcf/d.