Southwestern Energy Co. said a combination of activity cuts, moderating inflation and operational efficiencies would cut its full-year capital spending by $200 million as it continues to navigate a volatile commodity landscape.

The company now expects capital investment to be $2.0-2.3 billion this year, with full-year production of 1.65-1.70 Tcfe, or about 1% below the high end of its previous range. Management said Friday that the company would drill 10 fewer wells and turn 15 fewer to sales than originally planned as a result of the spending cuts.

“Lower sector activity, combined with an improved global supply chain has provided the opportunity for our strategic sourcing team to mitigate, and in some cases, reverse the inflationary cost pressures we had expected at the...