Weaker Gas Prices Sap 2023 Earnings of Natural Gas Producers

February 26, 2024--Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Sharpy lower natural gas prices hurt fourth-quarter and full-year 2023 revenue and earnings for four large U.S. gas-oriented independent oil and gas producers. Full-year 2023 results for EQT Corporation (NYSE:EQT) (Pittsburgh, Pennsylvania), Coterra Energy Incorporated (NYSE:CTRA) (Houston, Texas), Range Resources Corporation (NYSE:RRC) (Fort Worth, Texas) and Antero Resources Corporation (NYSE:AR) (Denver, Colorado) were lowered by gas prices that declined about 60% from comparable 2022 prices. Gas prices in 2022 were propelled sharply upward by Russia's invasion of Ukraine early in that year.

Given last year's weaker price environment, in reporting earnings several producers focused on various other metrics aside from earnings, such as operational improvements, reserve additions, falling production costs, drivers of future gas demand (such as potential exports of liquefied natural gas or pipeline gas sales to Mexico), rising demand for natural gas liquids (NGLs), production gains and debt reductions.

Other companies featured: Antero Midstream (NYSE:AM)