U.S. oil and gas producer Coterra Energy CEO Tom Jorden said on Wednesday the company plans to maintain its natural gas production shut-ins until there is an improvement in prices.
Natural gas prices in the United States have stayed below $2 per million British thermal unit for most of the year due to oversupply and moderate demand.
In response to falling prices, leading producers such as Coterra have reduced output and withdrawn rigs.
“We are very constructive in gas but right now we have a short-term disconnect,” Jorden said at a Barclays conference in New York.
Coterra currently has nearly 300 million cubic feet per day of natural gas production shut-ins, Jorden said, adding the company plans to increase production once prices improve.
The company said it will now focus on growth of its oil production and natural gas liquids, and allocate more capital towards the Permian and Anadarko basins.
(Reporting by Sourasis Bose and Vallari Srivastava in Bengaluru; Editing by Mohammed Safi Shamsi)