EQT Corp., Pittsburgh, elected in late February to cut gross production by about 1 bcfd and will maintain the curtailment through March.
The decision to curtail production—expected to total about 30-40 bcf of net production in this year’s first quarter—was made based on the current low natural gas price environment, the company said in a release Mar. 4.
EQT cited the current low natural gas price environment “resulting from warm winter weather and consequent elevated storage inventories.”
US benchmark Henry Hub daily natural gas price averaged $1.50/MMbtu on Feb. 20, 2024, according to US Energy Information Administration data.
High production and relatively low consumption have led to less natural gas being withdrawn from storage this winter, EIA said in a brief Feb. 28. “For the week ending Feb. 16, US working natural gas inventories averaged 12% above the year-ago average and nearly 22% above the 5-year (2019–23) average, according to [EIA’s] Weekly Natural Gas Storage Report.”
EQT said it will reassess market conditions at the end of the month. In a 2024 guidance provided as part of its Feb. 13 earnings report, the company projected total sales volume for first-quarter 2024 of 525-575 bcfe and 2,200–2,300 bcfe for full year 2024.
