7.5.5.3Vertical

Dry Gas Production

E&P companies producing predominantly natural gas.

Market snapshot

These figures describe Natural Gas E&P (7.5.5), the segment that Dry Gas Production sits within. They are not figures for Dry Gas Production on its own.

Market size
~$179B
Growth
~16.3%CAGR (2017–22, nominal)
Companies
~842 firms
Firms by employee count

81.5% of firms have fewer than 20 employees: 686 micro-businesses, below most mandates.

The investable universe156 firms with 20+ employees
20–99
6340%
100–499
4328%
500+
5032%

Gas repriced with European demand for LNG after 2022 supply disruption, which is why the growth looks like an industry transformed rather than a market clearing. The lasting change is structural: US gas is now priced against an export market rather than a domestic one.

NAICS 211130. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Natural gas (and NGL) production sales

Key economics

Revenue per firm
$212,277,221
Employees per firm
31.1
Recurring revenue
Moderate

recurring production; price-driven

EBITDA margin
Cyclical with gas prices
Capex intensity
High

Characteristics

  • Scale-driven: payroll is only 2% of revenue, so the cost base is assets, not headcount
  • Moderate strategic-buyer pool: 50 firms exceed 500 employees, so a scaled asset has buyers, but not many
  • U.S. is the world's largest gas producer and LNG exporter.
  • Marcellus/Utica and Haynesville gas plays lead.
  • LNG export and data-center load new demand drivers.

NAICS 211130. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaPennsylvaniaSouth DakotaWyomingConnecticutMissouriIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiIowaKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandOklahomaTexasWest Virginia

West Virginia at sixteen times the national concentration, then Oklahoma and Texas: the Appalachian gas basins, where Marcellus and Utica development created a dense operator base in a state with little other industry.

West VirginiaOklahomaTexas

U.S. Census Bureau, 2022 Statistics of U.S. Businesses (firms by state), NAICS 211130. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Gas-focused producers (EQT, Expand, Coterra)
  • LNG-integrated & midstream buyers
  • Private-equity & energy investors

What’s driving deals

  • Consolidation around low-cost gas producers.
  • LNG-export and power-demand growth.
  • Scale and capital-efficiency focus.

Find Dry Gas Production acquisition targets

Search Acquisera’s index for companies classified under Dry Gas Production (7.5.5.3) and build a targeted deal pipeline.

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