Cabot Oil & Gas said Tuesday it will slash its 2020 spending by nearly 30 percent amid historically low natural gas prices.
Source: Houston Chronicle
Cabot, Houston’s largest producer focused entirely on gas, said it will cut 2020 spending to $575 million from nearly $800 million last year as part of its so-called maintenance budget planning.
Natural gas prices are at their lowest levels in four years, sitting well below $2 per million British thermal units, and projected to stay near historic lows for months. The U.S. is dealing with oversupplies of natural gas and a growing worldwide glut.
“We believe that by substantially reducing our drilling and completion activity in 2020, we are taking the necessary steps to adapt to the current uncertainty in the natural gas markets, and we are prepared to maintain these reduced activity levels as long as this lower price environment persists,” Cabot CEO Dan Dinges said.
Despite the industry weakness, Cabot still has managed to turn a profit. The company reported net income of more than $500 million through the first nine months of 2019. Cabot won’t report fourth-quarter and full-year results until Feb. 21.
