straga/iStock via Getty Images
Antero Resources (NYSE:AR) ended +10.9% in Thursday's trading to its best close so far this year after reporting better than expected Q4 earnings and saying it plans to cut its 2024 drilling and completion capital budget by 26% to $650M-$700M.
The company said it is lowering the number of rigs in operation to two from three, and dropping one of its two completion crews.
It is "good to see operators clearly lay out plans to slow D&C [drilling and completion] capital at current gas prices," and the market should view Antero's (AR) full-year plan as "a welcome slowdown in spend and production," TPH & Co. analyst Jake Roberts said in response.
Earlier this week, top natural gas producer EQT (NYSE:EQT) trimmed its FY 2024 production guidance range by ~50B cfe from its recent outlook to 2.2T-2.3T cfe, which it said includes some flexibility to curtail volumes if prices remain weak; output totaled 2.016T cfe in 2023.
"The market is asking for not only production curtailments, but also activity reductions," CFO Jeremy Knop said on EQT's (EQT) post-earnings conference call.
Also, Comstock Resources (CRK) said this week it will cut the number of rigs in operation from seven to five and suspend its dividend until gas prices rise sufficiently.
U.S. natural gas prices have crashed to three-and-a-half year lows, with the front-month contract down 24% in the past eight days to settle Thursday at $1.581/MMBtu.
"If drillers continue to announce declining production guidance and weather stabilizes... natural gas may soon form a short-term bottom with an overdue relief rally possible," energy consulting firm EBW Analytics Group said.