Seneca Res. 2016: Lays Down Rig, Curtails Production, Cuts Budget

National Fuel Gas Company (NFG), the utility giant headquartered in Buffalo, NY and parent of Marcellus driller Seneca Resources, issued what they call their first quarter 2016 update yesterday. NFG’s first quarter is everyone else’s fourth quarter–it covers the last three calendar months of the year (October through December). The big news coming from this update is that Seneca Resources will lay down another active drilling rig in March and will then operate just a single rig for the rest of 2016 and for all of 2017. Currently they are curtailing (closing the valves) on 14.6 billion cubic feet of production they could be sending to market–because of the low price of natural gas. Seneca has also whacked its drilling budget another $50 million. Previously Seneca planned to spend $200-$250 million in fiscal year (FY) 2016. Now? It’s down to $150-$200 million. In other important news, NFG has decided to delay the in-service date of their Northern Access pipeline project by full year–from late this year to late next year…

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