Appalachian pure-play Cabot Oil & Gas Corp. plans to keep year/year production flat in 2021 and cut spending, despite what management believes is likely to be a better year for natural gas producers.

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In formally releasing its plans for this year, the company reiterated preliminary guidance unveiled in October to move through 2021 in maintenance mode as it looks to return more capital to shareholders.

The plan this year “highlights our commitment to disciplined capital allocation” and free cash flow (FCF) generation, “with a focus on maintaining our production flat year/year despite the expectation for a higher natural gas price environment this year,” said CEO Dan Dinges. 

The company, which operates only in Susquehanna County, PA, said 2021 production would average...