Question · Q3 2025
Matthew Portillo asked about the medium-term evolution of gas demand in Texas, Louisiana, and Arizona, and if downstream counterparties recognize the value of long-term supply contracts. He also inquired about the company's view on mid-cycle gas prices, particularly for the Hanzo basin, and the $4.50 gas price target for maximizing free cash flow.
Answer
CEO Nick Dell'Osso discussed growing demand in key U.S. submarkets, highlighting the Lake Charles Methanol transaction as a case study for securing long-term, low-carbon supply. EVP of Marketing and Commercial Dan Turco added insights on the supply-demand dynamics in South Louisiana. Nick Dell'Osso clarified that the company is currently focused on mid-cycle prices around $3.75, acknowledging potential for higher prices but emphasizing a measured approach due to market volatility and conservative demand growth forecasts.