CNX Resources announced it is cutting back on natural gas production in 2024, citing continued weakness of natural gas prices.

The company’s decision to slash production will help a natural gas market struggling with prices that have dropped to, and stubbornly remained below, $2/MMBtu for the last month, an analysis of the move noted March 12.

“Glad to see more producers cutting activity and production in response to the outlook for near-term natural gas prices, which we view as an appropriate decision that is positive for the macro,” TPH Energy Research wrote.

CNX also announced it will delay completions on three Marcellus Shale pads containing 11 wells to slash volume in an oversupplied market.

During the company’s 2023 fourth-quarter earnings conference call, executives said they hoped to keep production flat for the year at about 580 Bcfe.

The company now intends to decrease 2024 production to between 540 Bcf equivalent and 560 Bcf equivalent, a drop of about 30 Bcf equivalent from the original guidance. The company will retain the ability to increase production back to the original target range, the announcement said.

The decision also came with an accompanying $50 million reduction in the planned 2024 capex budget, with a total planned spending range updated to $525 million to $575 million.

TPH Energy rated the move prudent. CNX shares were trading around $21.15 per share on March 12 after starting the day at $21.35 per share.

CNX joins a growing list of producers that have announced production cuts. Chesapeake Energy announced it would slash production on Feb. 21, while EQT, the largest producer of natural gas in the U.S., announced a decrease in production on March 4.

Financial firm LSEG estimated that March natural gas production in the Lower 48 had fallen to an average of 100.1 Bcf/d, down from 104.1 Bcf/d in February, Reuters reported, and a monthly record of 105.5 Bcf/d in December 2023.

The U.S. weather in March is expected to remain warmer than usual, though temperatures have a chance to drop below normal after March 18, according to the National Weather Service.

After the CNX announcement on March 12, natural gas futures rose to $1.81/MMBtu on the Henry Hub. However, the gains were erased by mid-day, falling to $1.71/MMBtu, a drop of 2.8% from the day’s starting price of $1.74/MMBtu.