Chesapeake's Production Cut Shakes Up Natural Gas Markets

With US natural gas prices crashing to lows not seen since early Covid in recent days, around $1.60 per million British thermal units, major shale producer Chesapeake Energy announced in a Tuesday earnings report that it would decrease the number of drilling rigs to reduce production this year. As a result, NatGas futures soared.  This followed news from Chesapeake: Chesapeake is currently operating nine rigs (five in the Haynesville and four in the Marcellus) and four frac crews (two in each basin). Given current market dynamics, the company…