Lower 48 heavyweights EOG Resources Inc. and Coterra Energy Inc. are reducing activity in their natural gas plays to deal with slipping commodity prices.


However, the pullback does not dim the long-term bullish outlook, EOG CEO Ezra Yacob said.

During the first quarter conference call, Yacob said the Houston-based independent is still “constructive on future pricing for North American gas.” With prices slumping and storage levels high, though, “we are currently evaluating options to delay some activity” at Dorado, EOG’s No. 1 gas formation in South Texas.

“The medium- and long-term outlook for natural gas…continues to strengthen,” Yacob said. “Currently, U.S. LNG demand is at record levels,” with additional capacity scheduled to ramp in the next few...