Antero Resources (NYSE:AR) made waves in the market by closing at a remarkable high point this year, seizing an impressive 10.9% gain after releasing Q4 earnings that outpaced expectations. The energy company announced its strategic move to reduce drilling and completion capital budget by 26%, aiming for a range of $650M-$700M in 2024.

The reduction in drilling activity entails a cut in the number of operational rigs from three to two, and a decrease in the number of completion crews from two to one.

The trimmed budget and operations drew a positive nod from TPH & Co. analyst Jake Roberts, who noted that it was “good to see operators clearly lay out plans to slow D&C [drilling and completion] capital at current gas prices.” The market sentiment appears to back this strategic shift as a “welcome slowdown in spend and production.”

Antero is not the only natural gas player reevaluating strategy. This week, top natural gas producer EQT (NYSE:EQT) slashed its FY 2024 production guidance range by ~50B cfe, indicating readiness to curtail volumes if prices continue to weaken. CFO Jeremy Knop emphasized the market’s increasing demand for production curtailments and activity reductions during EQT’s post-earnings conference call.

Comstock Resources (CRK) followed suit by planning to reduce the number of operational rigs from seven to five and suspending dividends until gas prices rebound.

The latest industry moves come amid a severe slump in U.S. natural gas prices, plummeting to three-and-a-half year lows. The front-month contract nosedived by 24% in the past eight days, settling Thursday at $1.581/MMBtu.

Energy consulting firm EBW Analytics Group expressed the potential for a reversal, noting, “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.”

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