APA reduces US natgas production and NGL production during the first quarter due to low prices

In response to low prices, oil and gas company APA announced on Wednesday that it had curtailed production of natural gas in the United States by about 8 million cubic foot per day and natural gas liquids in the U.S. by 500 barrels per quarter.

APA announced in January that it had reduced its production by approximately 23,500 barrels equivalent per day (boepd). The Permian Basin has been experiencing low gas prices for the past three quarters. This led to similar reductions.

The oil and gas company did not indicate any production cuts in February's first quarter forecast.

The price of natural gas has been rising over the last few quarters, but it is still below the record highs set in 2022 due to U.S. sanctions imposed on Russia for its invasion of Ukraine. This led producers to reduce production.

Due to increased production and pipeline constraints, prices have been mixed in the first three months of the year.

The company expects that the average realized price of natural gas in the U.S. will be $2 per 1,000 cubic feet (Mcf), and $4.15 worldwide. Tanay Dhumal, Bengaluru (reporting) and Vijay Kishore (editing).

(source: Reuters)