1Q 2020 –

• The precipitous decline in drilling activity as a result of the impacts of COVID-19 and the Russia/Saudi price war has led to a significant decrease
  in projected associated gas production. These declines will likely be partially offset by a decline in industrial and LNG demand along the Gulf
  Coast as global demand falls amidst an already oversupplied international gas market. In the near term, the decrease in supply is likely to
  outpace demand destruction leading to stronger Henry Hub pricing in the second half of 2020 and into 2021.
• Oil production curtailments in the near-term and sustained production declines in the long-term are expected to remove significant associated
  gas volumes from the market, particularly in West Texas. The loss of associated gas volumes in the market is expected to put significant upward
  pressure on basis markets across the west as volumes from West Texas moving into the Rockies and Midcontinent are likely to decline. In gasfocused plays such as the Haynesville and Marcellus & Utica, outright pricing is expected to improve in late 2020 and 2021 to support the return
  of activity to the regions as associated gas production declines, opening space in the market for incremental gas-focused production.