...Prices Remain Depressed Henry Hub has averaged $2.75/million British thermal units (mmBtu) YTD, down from 2014's first-half average of $4.35/mmBtu, which was influenced by large winter inventory draws and weather-driven price spikes. Capacity-constrained Marcellus gas has averaged $1.74/mmBtu YTD, or approximately $1.00/mmBtu below Henry Hub. Fitch Ratings expects Northeast differentials to remain negative over the next 12 months. However, there are multiple takeaway projects coming online in the next few months, which could help to ease differentials depending on the level of local producers' drilling and completion activity. New York Mercantile Exchange natural gas futures are trending 30% below levels seen this time last year, with a 2016 average price of $2.57/mmBtu, making hedging strategies significantly less attractive for natural gas producers. Overall Gas Growth Slowing Total dry gas production has continued to grow modestly year over year, up 6.9% to 5 billion cubic feet per day...
