US gas production at record high in August amid summer drilling ramp

US natural gas production is on a tear in August, trending at another record high amid a rebound in the gas-directed drilling rig count – now at its highest since last winter.

Month to date, domestic gas production has averaged over 106.7 Bcf/d. Output is up 250 MMcf/d just since July, and has grown by leaps and bounds since late last year. During the fourth quarter of 2024, US gas production averaged about 103.3 Bcf/d. Last August, production stood at just 102.5 Bcf/d, data from S&P Global Commodity Insights showed.

Earlier this year, most of the production gains appeared to come from inventory.

In Appalachia, the number of drilled-but-uncompleted wells dropped by nearly 60 from January to July. Over the same seven-month period, producers in Haynesville pulled almost 25 wells from inventory. In the Permian, the number of DUCs has fluctuated this year but continues to decline steadily. In July, Permian producers' well inventory was down by 14 from a springtime high, data from the US Energy Information Administration showed.

Gas-direct drilling rebounds

More recently, gas producers have also been returning rigs to the drilling field, boosting the total number of operating rigs to its highest since November 2024.

As of early August, the total number of US gas-directed drilling rigs stood at 120. That's down from a recent high at 126, but still well above springtime lows when the total dropped to just 96.

Since late May, producers in the Haynesville have added 10 rigs to a total of 46. In Appalachia, the drilling rig count has remained roughly flat this year at around 30. In the Permian Basin, which produces mostly associated gas, the rig count has continued to decline steadily this year, dropping to 251 in August, down from highs around 290 in Q1.

Guidance

Earlier this year, some of the US' largest natural gas producers signaled their intention to cautiously ramp production this year in response to a stronger price environment.

This summer, many of those producers have followed through with their growth plans.

In the second quarter, Coterra Energy reported gas production just shy of 3 Bcf, which actually exceeded expectations for the quarter. The company also increased its full-year production guidance by 5% from 2.78 Bcf/d to 2.9 Bcf/d.

Thanks to recent efficiency gains, Expand Energy also reaffirmed its plan to grow production by some 300 MMcfe/d to an average 7.5 Bcfe/d in 2026.

National Fuel Gas also updated its guidance recently, signaling 8% annual growth in 2025 owing to the outperformance of its Utica Shale wells in Tioga County, Pennsylvania. For 2026, company management is already eyeing a sequential annual growth rate of 6%.

CNX Resources also reported a 230 MMcf/d quarterly gain in output in Q2 to 1.61 Bcf/d. Year-over-year, output was up about 390 MMcf/d, the company said. Based on recent gains, executives at CNX modestly lifted full-year production guidance to 1.69 Bcfe/d, citing strong well performance.