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Daily Prices

8/22/24

Coterra Deferring Some Marcellus Production Amid Weak Natural Gas Prices

By Andrew Baker

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Published in: Daily Gas Price Index Filed under:

Coterra Energy Inc. is planning to curtail about 275 MMcf/d of Marcellus Shale natural gas volumes from August through September because of expected low netbacks, according to management.

NGI's Henry Hub natural gas forward price chart

“We would like to see netbacks north of $1” before accelerating production in the Marcellus, CEO Tom Jorden said during a conference call to discuss the company’s second quarter 2024 earnings.

For Coterra, the fourth-leading U.S. publicly traded gas producer according to NGI calculations, this would require New York Mercantile Exchange Henry Hub prices to exceed $3/MMBtu, according to Jorden.

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Andrew Baker

Andrew joined NGI in 2018 to support coverage of Mexico’s newly liberalized oil and gas sector, and his role has since expanded to include the rest of North America. Before joining NGI, Andrew covered Latin America’s hydrocarbon and electric power industries from 2014 to 2018 for Business News Americas in Santiago, Chile. He speaks fluent Spanish, and holds a B.A. in journalism and mass communications from the University of Minnesota.