Haynesville Shale Resurgence Driven by LNG Demand and Rising Prices
The Haynesville shale formation in east Texas and northern Louisiana has seen a significant resurgence in production, thanks to rising natural gas prices and increasing demand from Gulf Coast LNG export terminals and gas-fired power plants.
According to the U.S. Energy Information Administration's Short-Term Energy Outlook, the region produced an average of 14.9 Bcfd in 2025, up roughly 4% from 2024. This growth is attributed to operators bringing previously shut-in wells back online and completing drilled-but-uncompleted wells.
The Henry Hub benchmark averaged $3.66/MMBtu in the first half of 2025, a 67% increase from the 2024 annual average of $2.19/MMBtu. This price recovery has pulled a larger share of the basin's inventory into profitable territory, particularly top-tier acreage.
Rig counts in the region have also seen significant growth, with gas-directed rig count increasing from 22 rigs in February 2025 to 52 rigs by mid-February 2026. Expand Energy Corp., the largest Haynesville operator, reported a 15% reduction in breakeven costs alongside double-digit production growth.