Factbox: US natgas producers cut spending, output to cope with low prices

Comstock Resources

12/03/2024 11:51

(Adds CNX Resources)
       March 4 (Reuters) - U.S. natural gas producers are
curbing their output and spending on drilling activity as an
oversupplied market has brought the prices of the commodity down
to multi-decade lows.
    In recent months, gas prices have dropped on near-record
output and low heating demand from a mild winter, leaving ample
amounts of gas in storage.  NGA/ 
    Below is a list of natural gas producers and steps they are
taking to tackle price declines.
    
    CNX Resources Corp
        The company said it is 
    delaying
     some well completion activities to avoid bringing
incremental volumes into the market.
  
        As a result, CNX expects 2024 production volumes to be
between 540 and 560 billions of cubic feet equivalent, a
decrease of about 30 Bcfe from the midpoint of its previous
forecast.
  
    
    EQT Corp
    The biggest natural gas producer cut natural gas production
by nearly 1 billion cubic feet (bcf) per day, starting late
February, and expects the curtailment to last through March.
    The cuts are expected to total nearly 30 to 40 bcf of net
production during the first quarter.
    
    Chesapeake Energy Corp
    The firm is cutting spending and natural gas output this
year. The company has lowered its capital expenditure plan by
20% for 2024 and aims to produce 2.7 billion cubic feet per day
(bcfd) in 2024, down from around 3.5 bcfd in 2023.
    
    Coterra Energy 
    The Houston-based energy company forecast a decline in
natural gas production for 2024, and said it would drop one rig
and spot crew during 2024 at the Marcellus basin due to weak
near-term prices. 
    
    Comstock Resources
    The U.S. gas producer said it would reduce the number of
rigs in operation from seven to five and suspend its dividend
until gas prices rise sufficiently.
    
    Antero Resources
    Plans to cut its drilling and completion capital budget by
26% after reducing the number of rigs in operation to two from
three. Antero expects a 3% decline in gas volumes this year,
compared with 2023.

 (Reporting by Mrinalika Roy and Sourasis Bose in Bengaluru;
Editing by Anil D'Silva, Shounak Dasgupta and Maju Samuel)
 ((mrinalika.roy@thomsonreuters.com))