Chesapeake Energy Corp. said Wednesday it would significantly slash spending and natural gas production this year in one of the biggest activity cuts announced yet for U.S. onshore operations in response to tanking prices. 

The company, one of the largest natural gas producers in the Lower 48, plans to reduce capital expenditures (capex) in 2024 by 20% and cut production by 15%, compared to preliminary guidance released last quarter. The news provided U.S. gas futures with the biggest jolt in more than a week. 

“We see that the market is oversupplied right now,” CEO Nick Dell’Osso said during a conference call to discuss financial results. “Capex reductions that we or anybody else in the industry take on have an impact to production several months out, as long as 12...