Despite implementing a plan to cut year-over-year spending by 20% in 2020, Southwestern Energy Co. expects annual production to climb by 10%, according to Natural Gas Intelligence. The increase in production is driven by the company’s investment in the Appalachian Basin.

The company forecasts capital expenditures of $860-940 million and anticipates overall production of 830-865 Bcfe. Although it expects to bring up to 110 wells to sales this year, mostly in West Virginia, the company’s oil and natural gas production is forecast to increase by 25% and 10%, respectively.

In its continued effort to cut costs, Southwestern managed to cut well costs to $824 per lateral foot last year — a 27% drop. This year, it expects well costs to average $730 per foot — a 10% reduction.

Learn more: NGI’s Shale Daily > Q2019 Earnings: Range, Southwestern slash spending, but see silver linings in Appalachian outlooks