When Expand Energy (EXE) reported Q3 2025 results, one theme stood out above all others: the Haynesville is becoming their crown jewel. In a year defined by transformational efficiency gains, EXE made it clear that no asset in the company’s portfolio has improved more quickly—or is positioned more strategically—than its massive Haynesville footprint.
Below is a breakdown of how EXE is reshaping the Haynesville into one of North America’s most competitive natural gas engines.
1. The Haynesville Is EXE’s Efficiency Powerhouse
EXE opened the call with a striking metric:
They now deliver the same Haynesville production with 7 rigs that required 13 rigs in 2023.
This is one of the most dramatic rig-efficiency improvements seen anywhere in U.S. shale. The gains come from:
- 25%+ reductions in drilling & completion costs
- A proprietary low-cost sand mine that stabilizes supply and reduces completion overruns
- Standardized Gen 1 → Gen 2 → Gen 3 completion designs delivering higher productivity
- Combined learnings from two legacy companies following the Chesapeake–Southwestern merger
EXE’s drilling and completions organization has turned the Haynesville into its model for capital efficiency.
2. Breakevens Below $2.75: A New Standard for U.S. Gas
EXE reported basin-wide Haynesville breakevens under $2.75—a massive competitive advantage in:
- volatile gas markets
- the coming wave of LNG export demand
- high-pressure, high-cost basins where many operators struggle
These breakevens reflect both efficiency improvements and sustained outperformance:
EXE’s Haynesville wells deliver ~40% higher productivity than the basin average.
This means EXE can throttle volumes up or down while preserving cash flow—an essential capability as global LNG markets grow more dynamic.
3. A 20-Year Inventory Positioned for Gulf Coast Demand Growth
EXE views the Haynesville as the link between deep supply and explosive Gulf Coast demand. With industrial projects, LNG expansions, and long-cycle investments from petrochemical customers, South Louisiana is one of the hottest gas markets in the world.
EXE’s position offers:
**• Direct connectivity through NG3 and LEAP pipelines
• 20+ years of premium drilling inventory
• Lower carbon-intensity gas for premium buyers**
This connectivity already paid off in Q3 with EXE’s Lake Charles Methanol supply agreement, a 15-year premium-sale deal that demonstrates the company’s ability to secure long-term, high-value demand for Haynesville molecules.
4. Western Haynesville: The Next Growth Option
Beyond its core Louisiana acreage, EXE has quietly built a 75,000-acre position in the Western Haynesville, including:
- a vertical test well confirming a thick, dense shale section
- a low-cost entry with limited near-term commitments
- a first horizontal well planned in Q4 2025
EXE cautioned that Western Haynesville carries uncertainties—especially around long-term decline rates and structural complexity—but believes the upside could be significant.
Why it matters:
Most operators are facing inventory pressure across the Haynesville.
EXE, in contrast, is expanding.
This gives the company optionality just as LNG demand accelerates and as smaller private operators exhaust drilling locations.
5. Leveraging NFZ Experience to Reduce Future Western Haynesville Costs
EXE operates heavily in the Nacogdoches Fault Zone (NFZ), one of the highest-pressure, technically challenging areas of the Haynesville. They are completing NFZ wells at $1,500–$1,600 per foot, best-in-basin economics.
Management believes NFZ learnings—high-pressure drilling, lateral placement, and proppant optimization—will allow them to meaningfully reduce the $3,000/ft well costs typical in the Western Haynesville.
This gives EXE a competitive edge that few operators possess.
6. The Haynesville Will Anchor EXE’s 2026–2030 Growth Plan
EXE confirmed a 2026 plan to average 7.5 Bcf/d—one of the largest gas output levels in North America—with:
- nearly flat year-over-year capex,
- the Haynesville as the foundation of that growth, and
- the marketing team securing premium long-term demand to monetize these volumes.
The company sees demand accelerating through 2030 and continuing well beyond.
Final Takeaway: EXE Is Rewriting the Haynesville Playbook
EXE’s Haynesville strategy blends:
**• industry-leading efficiency
• deep, long-life inventory
• growing premium sales channels
• disciplined expansion into new acreage
• and unmatched Gulf Coast connectivity**
While many operators are throttling back in the Haynesville due to cost pressures or inventory limitations, EXE is doubling down—building a basin-wide natural gas platform designed for long-term value creation in an era of rising LNG demand.
In short:
The Haynesville isn’t just part of EXE’s portfolio—
it’s the engine driving the company into the next decade of U.S. natural gas growth.
