Cabot Oil & Gas Corp. is cautiously optimistic that the natural gas market will improve as winter draws nearer, following a second quarter in which it weathered the ongoing downturn. 

“We anticipate that the improving demand outlook for natural gas, in conjunction with accelerated structural declines in supply resulting from significant activity cuts across all onshore basins, will provide tailwinds for natural gas prices this winter,” said CEO Dan Dinges. 

The company curtailed natural gas production during the second quarter on low prices, which averaged $1.52/Mcf, or 33% below its 2Q2019 average. 

Sales volumes for the period fell to 2.23 Bcfe/d from 2.36 Bcfe/d in 1Q2020 and 2.35 Bcfe/d in the year-ago quarter. Along with lower realized prices, the curtailments...