Coterra Holds Permian Rigs at 9 Amid Oil Market Calm
MIDLAND, TX — Coterra Energy announced today it will maintain nine active rigs in the Permian Basin, shelving plans to cut to seven during H2 2025. CEO Tom Jorden revealed at the J.P. Morgan Energy conference that fears of a sharp oil downturn have cooled as global demand signs stabilize.
“I’ve seen these periods in my career where when oil markets wobble,” Jorden said. “They don’t glide gently down to their low. They kind of wobble for a while and then they suddenly collapse. So we were looking at the possibility of a collapse. We’re feeling a little better about that now” — Tom Jorden, Coterra chairman, president and chief executive officer, speaking at the JPMorgan Energy, Power, Renewables & Mining Conference in New York
Why It’s Vital for Oil Producers:
- Capex resilience: Keeping rigs steady signals optimism and supports Permian output goals.
- Price-flexible profitability: Coterra expects profitability even if WTI slides toward $50–$60/bbl .
- Market confidence: The move reflects wider industry discipline—prioritizing shareholder returns over aggressive drilling.
Staying flat at nine Permian rigs sends a clear message: Coterra is betting on measured growth while maintaining readiness to respond quickly to new market data.
