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Henry Hub Extends Gains After Surge Amid 2024 Production Concern

NATGAS

Henry Hub prices for 2024 are extending gains after a sharp rise late yesterday driven by a reduction in estimated output this year from Chesapeake Energy.

    • US Natgas MAR 24 up 10.8% at 1.75$/mmbtu
    • US Natgas AUG 24 up 9.9% at 2.44$/mmbtu
    • US Natgas FEB 25 up 3.4% at 3.5$/mmbtu
  • Chesapeake Energy announced its capital spending plan will fund around 2.65bcf/d to 2.75bcf/d of natural gas output in 2024, significantly below the firm’s previous output. “The company plans to defer placing wells on production while reducing rig and completion activity,” it said.
  • US lower 48 gas production was yesterday down to 103.2bcf/d according to Bloomberg driven by lower Permian and Haynesville output. Production has seen a steady decline from a recent high of 105.25bcf/d on Feb 7.
  • Feedgas flows to US LNG export terminals are today down at 12.94bcf/d mainly driven by below normal supply to Freeport and Sabine Pass.
  • Domestic natural gas demand is down further today at 84.8bcf/d and back below the seasonal normal of around 90bcf/d. The latest US weather forecast show little change with above normal temperatures in central and eastern areas but slightly below normal on the west coast in the 6-14 day period.
  • Export flow to Mexico is today at 6.1bcf/d according to Bloomberg.

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