The U.S. natural gas and oil sector is likely to achieve moderate growth this year, preferring to hoard cash, reduce debt and continue investor payouts while awaiting stronger commodity prices, according to a bevy of energy analysts and executives.

NGI pored through detailed forecasts by analysts and discussed the 2023 outlook with energy executives for insight into what to expect this year. It’s still early, but exploration and production (E&P) companies are likely to remain disciplined over incurring debt.

The upstream sector should have “another strong year,” but commodity prices and free cash flow (FCF) are unlikely to match 2022 levels, according to Moody’s Investors Service. Mizuho Securities USA LLC is forecasting the U.S. gas macro also to be “challenged until...