As mineral owners in the Marcellus Shale, Vine Royalty likes to stay up to date on the activity in the area.
Cabot Oil and Gas, one of the largest operators in Northeast Pennsylvania, has plans to reduce drilling and completion activity in the Marcellus for 2015-2016, according to their 3rd quarter report.
By years end 2015, Cabot will have about 80 net wells drilled, and about 60 net wells completed. In 2016 the plan is to reduce these numbers to about 50 net wells drilled and about 65 net wells completed.
This reduction in drilling/completion activity is largely predicated upon lower anticipated natural gas price realizations throughout Appalachia as they await new takeaway capacity.