In this article, we’ll look at production activity in the regions where Williams Partners (WPZ) has major exposure. Let’s start with the US Appalachia region, which includes the prolific Marcellus and Utica plays. Its natural gas production continued to grow in the second quarter of 2018, by 19.6% YoY (year-over-year). However, drilling activity in the Utica region has remained weak in recent months, which could be a slight concern for the company.
Williams Partners, the largest natural gas gatherer in the region, is expected to see strong volume growth during the second quarter. MPLX LP (MPLX), Antero Midstream Partners (AM), and EQT Midstream Partners (EQM) are other midstream companies that have a significant presence in the Appalachia region.
Haynesville and Eagle Ford shales
Williams Partners is also the largest natural gas gatherer in the Haynesville Shale. The region’s production activity has increased sharply in recent quarters—its rig count rose YoY in June to 58 from 46, while its natural gas production grew by a massive 37.5% YoY. The Eagle Ford Shale continued to recover in the second quarter, with average natural gas production rising 8.1% YoY and 2.9% sequentially.