Pennsylvania natural gas production rose more than 5 percent in 2025 compared to the prior year, marking the strongest increase in annual production since 2021, the state Independent Fiscal Office (IFO) reported on Feb. 25.
The full-year increase in 2025 got a massive bump from production volume that climbed 3.4 percent during the fourth quarter of 2024, according to the IFO’s quarterly Natural Gas Production Report for October to December 2025.
The IFO report shows a major rebound in drilling activity and producer revenue for the Pennsylvania Marcellus region to close out 2025, using data from the Pennsylvania Department of Environmental Protection, the U.S. Energy Information Administration, and Natural Gas Intelligence. The quarterly update provides recent trends in production volume, well counts, and average spot prices.
Specifically, natural gas production volume was 1,934 billion cubic feet (Bcf) during the 2025 fourth quarter — the same amount as in the third quarter of 2025 — up 63 Bcf, or 3.4 percent, from 1,871 Bcf produced in the 2024 fourth quarter, the report shows.
At the same time, there were 129 new horizontal wells spud (drilled) in the fourth quarter of 2025 — an increase of 46 wells, or 55.4 percent, compared to the same quarter in 2024.
Comparatively, there were 446 wells drilled throughout the entirety of 2025, a gain of 137 wells, or 44.3 percent, from the prior year and the first annual increase in new wells since calendar year 2022, the IFO report says.
Additionally, the report includes county-level production volume and new wells drilled for 2025. The top five producing counties were: Susquehanna, Bradford, Washington, Greene, and Lycoming. Together, they accounted for 70 percent of production volume and 54 percent of new wells for 2025.
“Susquehanna and Greene counties both recorded strong growth in new wells despite production declines, while Washington and Lycoming counties had the most wells drilled in CY [calendar year] 2025,” the report says.
The IFO also reported that the average Pennsylvania spot hub price was $3.08, an increase of $1.07, or 53 percent, from the prior year’s $2.01.
“The fourth-quarter price was bolstered by December ($3.88), as prices increased in response to winter weather demand,” the report says. “The average price for the full year was $2.83, an increase of $1.17 (70.9 percent) from 2024.”
Preliminary data also show that average prices “increased dramatically” in January due to abnormally cold temperatures, as well as Winter Storm Fern, the IFO said.
“Due to the regional impact of the storm, the average Pennsylvania spot price temporarily surged to nearly $10 for January, which outpaced the Henry Hub (national benchmark),” the report says. “Both prices spiked in response to strong winter weather demand in January, but fell sharply in February.”