Spending

Oil and natural gas activity in Texas, southern New Mexico and northern Louisiana fell off a cliff in the first three months of the year, unsurprising news from the Federal Reserve Bank of Dallas.

Chevron Corp. led the way by oil and natural gas producers on Tuesday in announcing huge cuts to capital spending this year, with Marcellus Shale operator Antero Resources Inc. and Permian Basin-focused Laredo Petroleum Inc. also pulling back as the North American energy industry attempts to regroup amid a pandemic and an oil price war.

Montage Resources Corp. has joined its Appalachian peers by announcing it will cut capital spending this year by nearly 50% from the midpoint of 2019 guidance.

Montage Resources Corp. has joined its Appalachian peers by announcing it will cut capital spending this year by nearly 50% from the midpoint of 2019 guidance.

Montage Resources Corp. has joined its Appalachian peers by announcing it will cut capital spending this year by nearly 50% from the midpoint of 2019 guidance.

Leading Appalachian operator Range Resources Corp. plans to cut capital spending by nearly 30% this year in another sign of retrenchment in the Northeast, where natural gas producers continue to take a beating on low prices.

Appalachia’s natural gas-heavy exploration and production (E&P) companies continue to face headwinds, with downward pressure on strip pricing expected to lead to even deeper spending cuts as they try to operate within cash flow and deliver on this year’s plans.

Onshore heavyweight EOG Resources Inc. became one of the rare explorers to announce increased capital spending for 2019, with plans to devote more resources to new areas in the Lower 48 with better-priced drilling potential and less funds to more established plays.

EOG Resources Inc. is increasing its 2018 exploration and development expenditure forecast and raising its target for full-year crude oil production growth after posting record volumes during the third quarter, management said.