Coterra announced on Friday during its fourth quarter and full-year 2023 update that in 2024, the company will slash spending on new drilling in the Marcellus by 55% (dropping $460 million) and that production will drop by an estimated 6% in the Marcellus.
Coterra is currently running seven rigs and two completion crews in the Permian Basin, one rig in the Anadarko Basin, and two rigs and one completion crew in the Marcellus. We recently added a seventh rig in the Permian Basin, a few months ahead of schedule.
During a conference call with analysts, company management floated a potential plan to free up around $200 million from Marcellus operations in 2024 and reallocate it to other plays (the Permian or the Anadarko) by continuing to run just two rigs and one frac crew in the Marcellus.
Coterra says its large-scale Permian projects like Prewit-Justify/Authentic are driving efficiencies, with the concentrated geographical focus reducing mobilization time for drilling and completion services and allowing the company to utilize facilities and infrastructure across more wells.
Coterra’s Expected capital investment of $2.0 billion to $2.2 billion and Expect annual average production of 610 – 650 MBoe/d, in line with 2022.
