Major U.S. natural gas producers are preparing to further curtail production in the second half of 2024, after prices sank nearly 40% over the past two months.
Henry Hub gas futures have dropped to around $2 per million British thermal units (mmBtu), while in West Texas, Waha prices have turned negative a record number of times so far in 2024. Prices fell as demand softened following cooler than expected temperatures. Supplies had expanded meanwhile, as some producers lifted production during the second quarter after prices climbed some 47% in April and May.
EQT, one of the top gas producers in the U.S., has embedded around 90 billion cubic feet equivalent of strategic curtailments this fall, which the company will carry out if the market remains depressed, CFO Jeremy Knop said during the company's second quarter earnings call.
https://money.usnews.com/investing/news/articles/2024-08-07/us-natural-gas-producers-eye-more-output-cuts-as-prices-sink