- At least a few gas producers in the Marcellus shale will curtail production due to low prices, Williams Cos. (WMB, WPZ) CEO Alan Armstrong predicted during today's earnings conference call.
- "We're seeing decisions to shut in production because of extremely low prices in some of the constrained areas in the far northeast part of the Marcellus," the CEO said, which will hurt some of the expected growth from the area.
- Armstrong expects the production cuts to be short-lived, possibly lasting into Q2, and "feel(s) very strong about the overall health of the business, as demand for gas picks up and some of the extreme bottlenecks that exist in the northeast start to be relieved."
- Separately, Williams says it expects a decision from New York environmental regulators in a few months that will clear it to build its proposed Constitution pipeline from Pennsylvania to New York; the pipeline would will allow producers such as Cabot Oil & Gas (NYSE:COG) - which said last week that it would curtail Marcellus production due to low gas prices - to sell more Marcellus gas to U.S. northeast markets.