In a potential sign of low commodity prices finally catching up with upstream operators, the U.S. natural gas rig count plummeted during the week ended Friday (May 12), dropping 16 rigs to end the period at 141, according to data from Baker Hughes Co. (BKR).

Prior to the latest BKR tally, the U.S. natural gas rig count had remained relatively steady throughout 2023, ranging from around 150 to 160 rigs even as natural gas prices collapsed on mild winter weather and swelling storage inventories.

The double-digit decline, with the 141 active natural gas rigs as of Friday now lagging the year-earlier total of 149, offers the first clear signal in BKR’s dataset of natural gas producers feeling the pinch from discounted pricing.

Two oil-directed rigs also exited the patch...