The Haynesville Shale has long been one of the most prolific natural gas plays in North America, and Expand Energy Corporation (EXE) is proving that operational efficiency can unlock even greater value from this rich resource. Following its merger with Southwestern Energy, EXE has streamlined its Haynesville operations, slashing drilling times, cutting costs, and leveraging infrastructure investments to position itself as one of the most competitive gas producers in the region.

As the company gears up for 2025 and beyond, it is clear that efficiency will be the key to driving production growth while keeping costs under control. Let’s take a closer look at the improvements EXE has made in the Haynesville and how these changes are setting the stage for long-term success.

Faster Drilling, Lower Costs: A 20% Performance Boost

One of the most significant improvements EXE has achieved is in drilling performance. The company reported a 20% increase in drilling speed, reducing the time it takes to complete a well while simultaneously lowering costs.

Key Drilling Efficiency Gains in Haynesville:

✅ Pre-merger drilling speed: 489 feet per day
✅ Post-merger drilling speed: 595 feet per day
✅ Cost per foot drilled pre-merger: $434
✅ Cost per foot drilled post-merger: $335

By applying standardized drilling practices across its rig fleet, EXE has not only increased efficiency but also reduced costs by 23% per foot drilled. This translates to significant savings, with each well now costing approximately $1.4 million less to drill than before.

Furthermore, these gains are not limited to just one phase of the drilling process. EXE has seen improvements across all hole sections, including:

Mobilization: Faster rig setup and deployment
Surface & Intermediate Sections: Reduced time to drill through these critical phases
Production Section: Optimized completions process for better well performance

With 8.8 days saved per well, these efficiencies allow EXE to turn wells online faster and bring additional production to market sooner.

EXE’s Louisiana Sand Mine: A Game-Changer for Cost Reduction

One of the most exciting efficiency initiatives in EXE’s Haynesville operations is its EXE-owned sand mine in Louisiana, which officially began supplying frac sand to its operations on February 1, 2025. This move significantly lowers completion costs and enhances operational flexibility.

Benefits of EXE’s Sand Mine:

✅ Lower cost per ton of frac sand compared to third-party suppliers
✅ Scalability: Cost savings increase as mine utilization grows
✅ Reduced reliance on external suppliers, ensuring a more consistent supply chain

By securing its own sand supply, EXE is eliminating pricing volatility and reducing well completion costs across its Haynesville operations. This vertical integration is expected to generate additional cost savings and efficiency gains throughout 2025.

Water Infrastructure Optimization: Cutting Costs in Completions

Water management is a crucial component of Haynesville’s operations, and EXE is leveraging its infrastructure to reduce water disposal and transportation costs. The company has increased the utilization of its owned water infrastructure, leading to an expected $15 million in annual savings.

Additionally, EXE is expanding wet sand and pile systems across its Haynesville completions, reducing trucking costs and making the well completion process even more efficient.

Optimized Well Designs & Extended Laterals

Beyond drilling speed and completions costs, EXE is also making strides in well design optimization. By standardizing completions across all of its rigs, EXE is ensuring higher productivity per well and maximizing the efficiency of its drilling program.

Another major shift is EXE’s move toward longer laterals in Haynesville wells: ✅ 2024 lateral length: ~8,500 feet
✅ 2025 planned lateral length: 9,500–10,500 feet

Longer laterals mean that more gas can be extracted from each well, improving overall production efficiency while reducing per-unit costs.

What This Means for EXE’s Future in Haynesville

Looking ahead to 2025 and beyond, EXE is positioning itself as a low-cost leader in Haynesville, with planned production growth from ~2.34 Bcfe/d in Q4 2024 to ~2.9 Bcfe/d in 2025. This increase is driven not by excessive capital spending but by strategic efficiency improvements that allow EXE to produce more gas for less money.

2025 Efficiency Goals in Haynesville:

✔ $110 million in cost savings from drilling efficiencies
✔ ~2.9 Bcfe/d production target
✔ Scalability to increase production to 3.0+ Bcfe/d if market conditions allow

By lowering breakeven costs, optimizing operations, and integrating its supply chain, EXE is ensuring that it remains one of the most efficient and profitable natural gas producers in the Haynesville Shale.

Final Thoughts: EXE’s Efficiency Playbook is Paying Off

As the demand for natural gas continues to rise—particularly with U.S. LNG export capacity expected to grow by 11 Bcf/d by 2027—EXE is in a prime position to capitalize on this growth. The company’s investment in efficiency, infrastructure, and cost-cutting measures in the Haynesville will allow it to maintain profitability in any market conditions while keeping its production scalable for future demand.

With lower costs, faster drilling, and a clear path to production growth, Expand Energy is proving that efficiency isn’t just about cutting expenses—it’s about creating a sustainable, profitable, and resilient natural gas operation for the future.