Marcellus, Utica Operators: Takeaway capacity still a near term concern

At the DUG East Conference held earlier this week, Sterne Agee analysts Tim Rezvan and Truman Hobbs found plenty of reason to be optimistic about new exploratory wells in Utica and Marcellus shale formations, but short takeaway capacity could limit near-term growth. “The key theme emerging was widespread operator bullishness on the next stages of development in the Marcellus/Utica across Appalachia, which appear to be leading to optimal development of the stacked pay potential of these formations across eastern Ohio, West Virginia, and Pennsylvania,” write Rezvan and Hobbs. Marcellus test drilling moving west into Ohio For one thing, they report…