First, we got Chesapeake Energy's
On Monday, PetroQuest Energy
Industrywide, these Mother Nature-imposed curtailments are providing a modest cushion to falling natural gas prices. But gas producers are going a step further and dialing back their drilling. Petroquest -- a neighbor of partners Chesapeake and BP in Oklahoma's Woodford shale -- is slowing its leasing activity there, and pulling a rig out of service sometime this month.
As for the future, Petroquest says it's focusing on funding its drilling out of operating cash flow. This may seem like a no-brainer, but E&Ps will spend well beyond their cash flow when funding is abundant and they're feeling flush. Dependence on debt just won't cut it in this environment. That's one more factor weighing in favor of diminished drilling budgets.
I should point out that not everyone is running for cover. Remember Anadarko Petroleum's