With a mild winter ending and natural gas storage staying at higher-than-normal levels, EQT Corp., the largest U.S. natural gas producer, became the latest producer to slash production this week. The company joins a number of other producers that have scaled back production as natural gas prices remain stubbornly low.
EQT said March 4 it had started to cut gross production by about 1 Bcf/d in late February in “response to the current low natural gas price environment.”
The Henry Hub natural gas front month futures price rallied at the news, climbing about 7% to $1.96 per MMBtu, the highest since prices fell below $2 per MMBtu at the beginning of February. While it was some rare positive recent news for natural gas, prices remain lower than at any time since the COVID-19 outbreak at the beginning of 2020.