Houston-based Coterra Energy said last week it is reducing plans for oil-directed rigs in Permian Basin in second half of 2025 while boosting spending for gas assets in Marcellus. After exiting first quarter with 13 rigs in Permian Basin, Coterra will trim that count to 7 rather than 10 as originally planned and decrease spending by $120 million to $1.45 billion at midpoint.
Tom Jordan, chairman, CEO and president, said May 5, “We believe it is prudent to reduce oil-directed activity at this time… We are lowering Permian investment in 2025 and now expect to average seven Permian rigs during the second half of the year… We added two natural gas-directed rigs in Marcellus in April and may keep this activity running for the balance of 2025.”
In first quarter Coterra said total production (747,000 boed), oil production (141,200 b/d) and natural gas production (3,044 million cfd)) were above midpoint of guidance. The company is raising boed and natural gas production forecasts and lowering capital budget range to $2.0 billion to $2.3 billion (from $2.1 billion to $2.4 billion). Coterra expects 2Q production of 710,000 to 760,000 boed (147,000 to 157,000 b/d of oil).
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