NAICS 211130 Quarterly Industry Report
Natural Gas Extraction
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 211130Sector: Mining, Quarrying, and Oil and Gas Extraction (21)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 211130 provides valuation-focused intelligence for professionals assessing natural gas production businesses and properties. Data is sourced from U.S. Additional data is drawn from [Bureau of Labor Statistics[8], U.S. Census Bureau[9].. Energy Information Administration](https://www.eia.gov/) natural gas production statistics, Securities and Exchange Commission[7] reserve reporting standards, and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for natural gas extraction enterprises.
Industry Snapshot
Key metrics for the natural gas extraction industry.
NAICS Sector
21
Mining, Quarrying, and Oil and Gas Extraction
Industry Definition & Overview
Natural Gas Extraction (NAICS 211130) encompasses establishments primarily engaged in the exploration, development, and production of natural gas from wells, as well as the recovery of liquid hydrocarbons (natural gas liquids) from oil and gas field gases. Operations span conventional gas wells, unconventional shale gas and tight gas formations, coalbed methane production, and natural gas liquids (NGL) fractionation at field processing facilities. The U.S. Census Bureau[5] classifies natural gas extraction separately from crude petroleum extraction (NAICS 211120) and natural gas distribution (NAICS 221210), recognizing the distinct upstream production function.
The United States is the world's largest natural gas producer, with the U.S. Energy Information Administration[6] tracking daily production volumes, reserve estimates, and well completion data across all producing states and formations. The Marcellus and Utica shale formations in Appalachia, Haynesville shale in Louisiana and Texas, and Permian Basin associated gas production represent major supply basins. Growing demand from LNG export terminals, power generation, industrial manufacturing, and petrochemical feedstock applications continues to drive production investment and infrastructure development.
Business valuations for natural gas extraction operations follow reserve-based methodologies that estimate the present value of future net revenue from proved and probable reserves. Appraisers evaluate producing well inventory, reserve classifications under SEC[7] reporting standards, operating cost per MCF, NGL yield and pricing, gathering and processing agreements, and acreage positions with development potential. Comparable transaction metrics include price per flowing MCFE (thousand cubic feet equivalent), price per acre, and price per proved reserve unit from acquisitions within the same producing basin.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for natural gas production operations
- Revenue and profitability analysis across dry gas, wet gas with NGL recovery, coalbed methane, and associated gas production segments
- SBA size standard classification and lending threshold data for NAICS 211130
- Comparable transaction data from recent gas property acquisitions, producing well packages, and undeveloped acreage trades by basin
- Regional market analysis covering Marcellus, Haynesville, Permian associated gas, and other major natural gas production basins
- Workforce and operating cost benchmarking for production engineers, field operators, gas plant technicians, and lease management staff
- Industry risk assessment including gas price volatility, takeaway capacity constraints, regulatory changes, and depletion rate exposure
- Regulatory compliance overview covering state drilling permits, EPA methane emission rules, pipeline safety standards, and flaring regulations
- Capital expenditure profiles for drilling and completion costs, gas processing plants, compression equipment, and gathering pipelines
- Production metrics including MCF per day, lifting cost per MCFE, decline rates, NGL yield ratios, and reserve replacement benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Mining, Quarrying, and Oil and Gas Extraction | 21 |
| Subsector | Oil and Gas Extraction | 211 |
| Industry Group | Oil and Gas Extraction | 2111 |
| NAICS Industry | Natural Gas Extraction | 21113 |
| National Industry | Natural Gas Extraction | 211130 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 211120 | Crude Petroleum Extraction | Crude petroleum extraction operations that co-produce associated natural gas and share drilling, completion, and surface processing infrastructure with gas production wells |
| 213111 | Drilling Oil and Gas Wells | Contract drilling companies boring oil and gas wells for natural gas extraction operators who outsource wellbore drilling and completion work to service providers |
| 213112 | Support Activities for Oil and Gas Operations | Support activities for oil and gas operations including well servicing, fracturing, and production optimization services for natural gas extraction companies |
| 486210 | Pipeline Transportation of Natural Gas | Pipeline transportation of natural gas from production facilities and processing plants to transmission systems, distribution networks, and LNG export terminals |
| 221210 | Natural Gas Distribution | Natural gas distribution utilities that purchase produced gas from extraction companies for delivery to residential, commercial, and industrial end-use customers |
| 325110 | Petrochemical Manufacturing | Petrochemical manufacturing operations purchasing natural gas and natural gas liquids as feedstock for ethylene, methanol, and other chemical production |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 38.9% | 503 |
| 2 | Oklahoma | 11.0% | 142 |
| 3 | Louisiana | 7.3% | 95 |
| 4 | Pennsylvania | 7.2% | 93 |
| 5 | West Virginia | 5.2% | 67 |
| 6 | Colorado | 4.9% | 63 |
| 7 | Ohio | 4.6% | 60 |
| 8 | New Mexico | 3.4% | 44 |
| 9 | Kansas | 2.1% | 27 |
| 10 | Wyoming | 1.9% | 25 |
% Of Establishments
0%
39%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
40
Total SBA Loans
$8.4M
Total Loan Volume
$209K
Average Loan Size
9 yrs
Average Loan Term
11.16%
Average Interest Rate
224
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[11] classifies Natural Gas Extraction (NAICS 211130) with a size standard of 1,250 employees. Natural gas producers within this threshold qualify for SBA-backed lending[12] and government contracting preferences, though development programs typically rely on reserve-based lending, joint venture structures, and private capital markets for drilling and completion funding. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Readycap Lending, LLC | 8 | $4.0M | $500K |
| 2 | Exchange Bank and Trust Company | 8 | $1.8M | $227K |
| 3 | JPMorgan Chase Bank, National Association | 8 | $1.2M | $155K |
| 4 | Newtek Bank, National Association | 8 | $800K | $100K |
| 5 | Northeast Bank | 8 | $521K | $65K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for natural gas production?
Natural Gas Extraction is classified under NAICS code 211130, covering establishments producing natural gas and recovering liquid hydrocarbons from field gases per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for natural gas extraction?
The SBA[11] sets the size standard for NAICS 211130 at 1,250 employees, qualifying eligible natural gas producers for small business government contracting preferences and SBA lending programs.
How are natural gas properties valued?
Valuations use discounted cash flow analysis of proved reserves per SEC[7] reporting standards, supplemented by per-MCFE, per-acre, and per-flowing-unit comparable transaction metrics from basin-specific acquisition activity.
What are the major U.S. natural gas producing basins?
The Marcellus and Utica shales (Appalachia), Haynesville (Louisiana and Texas), Permian Basin (associated gas), and various Rocky Mountain basins lead production per U.S. Energy Information Administration[6] natural gas monthly reporting data.
What are natural gas liquids?
Natural gas liquids (NGLs) include ethane, propane, butane, and natural gasoline recovered from wet gas streams at processing plants, generating premium pricing above dry gas per U.S. Energy Information Administration[6] NGL production and pricing data.
What risks affect natural gas extraction valuations?
Major risks include gas price volatility, pipeline takeaway capacity constraints, production decline rates, regulatory changes affecting drilling and emissions, basis differential pricing between production points and market hubs, and seasonal demand fluctuations.
How has shale gas changed U.S. natural gas production?
Horizontal drilling and hydraulic fracturing in shale formations have dramatically increased U.S. production, making the country the world's largest gas producer and a net exporter per U.S. Energy Information Administration[6] annual energy outlook projections.
What environmental regulations apply to gas extraction?
Regulations include state drilling and completion permits, EPA[15] methane emission reduction rules, well integrity testing requirements, produced water disposal permits, flaring limitations, and air quality monitoring standards near production sites.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]U.S. Energy Information Administration eia.gov
- [7]SEC sec.gov
- [8]U.S. Additional data is drawn from [Bureau of Labor Statistics bls.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]EPA epa.gov
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