Southwestern to reduce rig count in Appalachian Basin

Southwestern Energy Co. recently announced it plans to reduce its rig count from six to two in coming weeks as part of a larger initiative to reduce spending and better control costs, according to Natural Gas Intelligence.

The company also trimmed its full-year capital budget, saying spending would not eclipse $1.15 billion in 2019 — reduced from $1.18 billion. The decision announcement comes at a time when other operators in the Appalachian Basin are cutting spending and activity on low natural gas prices.

Southwestern Energy’s full-year guidance of 750-785 Bcfe remains the same and implies an annual growth rate of 9%, which isn’t likely to change much next year, according to CEO Bill Way.

Learn more: Natural Gas Intelligence > Southwestern Dropping Four Rigs in Appalachia

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