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.
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)