Pennsylvania shale gas drillers increased their permitting activity 30% month over month in June as natural gas futures prices increased and in-basin prices shot up roughly $1/MMBtu compared to May lows.

The state's five largest producers — EQT Corp., Range Resources Corp. Cabot Oil & Gas Corp., Chesapeake Energy Corp. and Southwestern Energy Co. — resumed activity in core counties, accounting for 51% of the June permitting activity, according to data from the state Department of Environmental Protection accessed July 8. In May, the big five pulled only 28% of the state's total permits.

EQT pulled nine permits in June, eight in southwestern Greene County, compared to two permits statewide in May and one in June of 2020. Tioga County, in north-central Pennsylvania, also saw increased activity with Spanish major Repsol SA pulling six permits, compared to zero in May and two in June 2020.

Publicly held producers accounted for 75% of the permits issued in June, a sharp contrast to the prior month, when those producers accounted for 40% of permits. Appalachia's publicly traded producers have cut back on drilling and spending in 2021 under investor pressure to show positive cash flows and return that money to shareholders.

The NYMEX natural gas futures contract for July delivery at the benchmark Henry Hub in Louisiana rolled off the board June 28 at $3.593/MMBtu, a 30-month high, after strengthening through June as warmer-than-normal weather blanketed the northern U.S.

Pennsylvania's producers also benefited from stronger prices at local hubs. At the Leidy Hub, in the northeast's dry gas window centered on Susquehanna County, cash prices went from a low of 93.7 cents/MMBtu on May 3 to close out June at $3.07/MMBtu.