Fracking activity has increased in November, just in time for producers to take advantage of higher natural gas winter pricing. It has been difficult to take advantage of winter pricing in November as natural gas cash (spot next day delivery) prices have been very depressed so far this month. However, this will change as we get further into the month of November with much colder weather forecasts and much higher cash prices from the increased demand for natural gas. There is some seasonality as fracking activity picks up in November with the beginning of winter.
Fracking activity has increased in the Northeast (PA, OH, & WV) where there is the largest increase in natural gas prices coming into the winter.
It remains to be seen if the fracking activity in the Northeast will continue to increase. It probably will as EQT, the largest natural gas producer in the Lower 48 US and in the Northeast, finally got some of their frack crews up and running for the first time since July 2022. They still have further upside to go because their frack crew guidance for 2022 is to have 5 frack crews and they are currently at 2 frack crews.
EQT had difficulties getting water in Q3 2022 due to the summer drought in the Northeast. EQT stated in their Q3 2022 earnings call on 10/27/2022 that their water shortage issues have been resolved. EQT also stated that they had 3rdparty midstream difficulties, which also negatively impacted their production. However, with their frack crews picking back up, it appears that their issues are getting resolved. EQT still has upside to go with their frack crews since their guidance for 2022 was to have 5 frack crews.
The Haynesville Texas region also saw an increase in fracking crews in November
Summary
Frack crews are picking up in November, led by the Northeast with EQT and by the Haynesville Texas region. There is some seasonality to the increase in November frack crews and some specific company reasons (EQT) for the increase in frack crews.
