Natural Gas Production, North America (BI NGASN)

The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and Bloomberg Intelligence (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly ownedsubsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain functionalities distributed via the Services are available only tosophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP,BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to "buy", "sell" or "hold" an investment. Information available via the Services should not be considered as information sufficient upon which to base an investmentdecision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marksof BFLP, a Delaware limited partnership, or its subsidiaries. © 2015 Bloomberg Finance L.P. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.

 

Themes > Chapter: Blame the Northeast for Low Natgas Prices Into '17 >> Exhibit 1 of 6

Northeast U.S. Gas Boom May Hurt Prices Nationwide Through 2017Analysts: Vincent G Piazza & Gurpal DosanjhJul 7, 2015Prodigious production of naturalgas and liquids such as ethaneand propane in the U.S. Northeastwill keep pressure on gathering,processing and transportationinfrastructure into 2017, even amid asteady expansion of capacity. Pricesin the region may be depressedby these bottlenecks, and otherhubs will also be affected asMarcellus and Utica productiondisplaces natural gas transportedto the Northeast. Incrementaloutput flowing to the Southeastand Midwest will compete with gasproduced in those areas.

  Key Points:* Marcellus, Utica Gas Output Will Displace Other Regions'Volumes* Plethora of Northeast Gas Pressures Other Markets Into 2017* Northeast U.S. Gas Pipeline Additions May Affect RegionalPrices* NGL Price Pressure to Remain as Northeast Adds to Oversupply* Natural Gas, NGL Flows Rebalance, Yet Weak Prices WillPersist

Natural Gas Production TeamBloomberg Intelligence

Natural Gas Production, North America (BI NGASN)

The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and Bloomberg Intelligence (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly ownedsubsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain functionalities distributed via the Services are available only tosophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP,BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to "buy", "sell" or "hold" an investment. Information available via the Services should not be considered as information sufficient upon which to base an investmentdecision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marksof BFLP, a Delaware limited partnership, or its subsidiaries. © 2015 Bloomberg Finance L.P. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.

 

Themes > Chapter: Blame the Northeast for Low Natgas Prices Into '17 >> Exhibit 2 of 6

Marcellus, Utica Gas Output Will Displace Other Regions' VolumesAnalysts: Vincent G Piazza & Gurpal DosanjhJul 7, 2015Natural gas volume growth inthe U.S. Northeast is likely toslow through 2017 as productionrises faster than pipeline capacity,pressuring price differentials acrossthe region. Operators have soughtout new markets to absorb theexcess volume, helping to diluteseasonal supply and demandimbalances and boost prices. Areversal of typical Northeast flow willhurt basis prices across the U.S. inthe long term. Marcellus and Uticaoutput may surpass 19 billion cubicfeet a day in July, about 25% of U.S.volume.

  Marcellus and Utica Natural Gas Production

Natural Gas Production Team For interactive exhibit on Bloomberg, run:Bloomberg Intelligence G BI3 1784<GO>

Natural Gas Production, North America (BI NGASN)

The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and Bloomberg Intelligence (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly ownedsubsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain functionalities distributed via the Services are available only tosophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP,BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to "buy", "sell" or "hold" an investment. Information available via the Services should not be considered as information sufficient upon which to base an investmentdecision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marksof BFLP, a Delaware limited partnership, or its subsidiaries. © 2015 Bloomberg Finance L.P. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.

 

Themes > Chapter: Blame the Northeast for Low Natgas Prices Into '17 >> Exhibit 3 of 6

Plethora of Northeast Gas Pressures Other Markets Into 2017Analysts: Vincent G Piazza & Gurpal DosanjhJul 7, 2015The price spread between cheapNortheast U.S. natural gas andmore expensive Henry Hub gas willstay wide through at least 2017,when additional pipeline capacitycomes online. The Northeast,historically a region with premiumpricing that imports gas duringhigh seasonal demand, is nowmore reliant on its own lower-costoutput. However, limited intermittenttakeaway capacity has reducedprices. With more takeaway, itsgas will find new markets anddifferentials may improve whileprices elsewhere are pressured.

  Northeast Natural Gas Spot Prices

Natural Gas Production Team For interactive exhibit on Bloomberg, run:Bloomberg Intelligence BI NGASN SPOT |34-2-W|WL104||USD|S468,471,487,502<GO>

Natural Gas Production, North America (BI NGASN)

The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and Bloomberg Intelligence (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly ownedsubsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain functionalities distributed via the Services are available only tosophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP,BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to "buy", "sell" or "hold" an investment. Information available via the Services should not be considered as information sufficient upon which to base an investmentdecision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marksof BFLP, a Delaware limited partnership, or its subsidiaries. © 2015 Bloomberg Finance L.P. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.

 

Themes > Chapter: Blame the Northeast for Low Natgas Prices Into '17 >> Exhibit 4 of 6

Northeast U.S. Gas Pipeline Additions May Affect Regional PricesAnalysts: Vincent G Piazza & Gurpal DosanjhJul 7, 2015About 30 billion cubic feet a dayof pipeline reversal, expansionand new construction projectsmay be built through 2018, helpingNortheast U.S. E&Ps transportgas within and out of the region.About 17 bcf could be sent to theGulf Coast and South, competingwith legacy gas and suppressingprices. About 6 bcf may flow east,increasing supply to capacity-shortNew England and reducing extremeseasonal pricing in Boston. Anadditional 5 bcf of capacity will headtoward the Midwest, displacing gasfrom the Rockies.

  Northeast Natural Gas Pipeline Projects

Natural Gas Production TeamBloomberg Intelligence

Natural Gas Production, North America (BI NGASN)

The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and Bloomberg Intelligence (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly ownedsubsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain functionalities distributed via the Services are available only tosophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP,BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to "buy", "sell" or "hold" an investment. Information available via the Services should not be considered as information sufficient upon which to base an investmentdecision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marksof BFLP, a Delaware limited partnership, or its subsidiaries. © 2015 Bloomberg Finance L.P. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.

 

Themes > Chapter: Blame the Northeast for Low Natgas Prices Into '17 >> Exhibit 5 of 6

NGL Price Pressure to Remain as Northeast Adds to OversupplyAnalysts: Vincent G Piazza & Michael KayJul 7, 2015The Marcellus output glut that'sstraining infrastructure is alsodepressing prices of natural gasliquids. NGL supply has surged 12-fold in the past five years. Whileoutput growth will be more subdued,demand will lag behind risingvolume, forcing producers to leaveethane, the largest NGL component,in the gas stream. Projects such asMariner East and West will allowethane exports from the NortheastU.S. While Enterprise's propaneconnector will join East and WestCoast flows, domestic oversupplywill remain.

  Northeast NGL Production (MBPD)

Natural Gas Production Team For interactive exhibit on Bloomberg, run:Bloomberg Intelligence G BI3 1785<GO>

Natural Gas Production, North America (BI NGASN)

The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and Bloomberg Intelligence (the "Services") are owned and distributed by Bloomberg Finance L.P. ("BFLP") in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly ownedsubsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. Certain functionalities distributed via the Services are available only tosophisticated institutional investors and only where the necessary legal clearance has been obtained. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP,BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to "buy", "sell" or "hold" an investment. Information available via the Services should not be considered as information sufficient upon which to base an investmentdecision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marksof BFLP, a Delaware limited partnership, or its subsidiaries. © 2015 Bloomberg Finance L.P. All rights reserved. This document and its contents may not be forwarded or redistributed without the prior consent of Bloomberg.

 

Themes > Chapter: Blame the Northeast for Low Natgas Prices Into '17 >> Exhibit 6 of 6

Natural Gas, NGL Flows Rebalance, Yet Weak Prices Will PersistAnalysts: Vincent G Piazza & Gurpal DosanjhJul 7, 2015Abundant natural gas liquids fromthe three key U.S. oil plays, alongwith stout natural gas volumefrom the Northeast, will maintainpressure on regional gas and NGLprices even with potential exportdemand. Volume will convergealong the Gulf Coast and Southeastas flows rebalance. Gas from themain oil plays accounts for about20% of total domestic output, whileNortheast gas makes up 25%.Less drilling will narrow the supplyand demand imbalance, thoughexpected demand may weaken ifexports don't materialize.

  Additional Resources:* LNG Exports Provide Longer-Term Demand Channel* Propane Export Opportunity Overshadowed by Stout Volume* Ethane Imbalance Likely Persists With Output From Marcellusand Utica* Appalachia Price Points Feel Pressure From Imbalances* Appalachia Equity Returns Hampered by Weaker Differentials* A Tale of Two Regions: Northeast Takeaway Expansion NotEqual* Help for Appalachia But Pricing to Remain Challenged

Natural Gas Production TeamBloomberg Intelligence