Magnum Hunter Resources (NYSE: MHR) CEO Gary C. Evans said he has halted virtually all capital spending as the company waits for oilfield services to “feel the pain” of low commodity prices.

The natural-gas-focused company will nevertheless see 100% production growth compared to 2014 because of high producing pad wells, said Evans, who is also chairman of the company.

But MHR is laying out cash for more property, announcing on a Jan. 23 conference call that the company had bought 2,665 net acres in Ohio.

“We haven’t announced a budget,” Evans said on a Jan. 23 conference call. “When you’re in a death spiral of prices in this business, you’re crazy to be spending money. I stopped all capital spending as of the first of January.”

Wells from 2014 are still being completed, Evans said. Overall 2015 capex will be about $100 million, an 80% drop from last year.

Evans said the company expects production could average 30-35 thousand barrels of oil equivalent per day (Mboe/d), including shut-in volumes. In 2014, quarterly production averaged 12-16 Mboe/d.

Evans said he thinks drilling costs will come down. He refuses, he said, to spend $2 today for something that will cost $1 tomorrow.

“We know there’s going to be huge discounts on oilfield services. We’re shooting for 40% discounts,” he said. “That’s not going to happen overnight. The oilfield services sector has to feel the pain. It will take time but it’s coming.”

MHR has the luxury of waiting because the company’s land is largely locked up. Much of it is held by production or beginning five-year lease terms.

“We don’t have any lease expirations,” Evans said. “I can’t emphasize that enough because holding your leases with existing production is how you survive.”

MHR is pursuing a potential joint venture (JV) in the Utica in Ohio side, potentially worth $350-$500 million, said Gabriele Sorbara, analyst, Topeka Capital Markets.

“Not only will a transaction improve its liquidity, it will place a valuation on its acreage, which should be extrapolated to its entire position,” he said.

Assuming a base case of $10,000 per acre and throwing out 50% of its Utica/Marcellus acreage, MHR shares would imply nearly 150% upside.

Magnum Hunter reported Jan. 23 that it had acquired Ohio acreage through wholly owned subsidiary Triad Hunter LLC.

Evans said some may question the move but he said the company acquired “prime leases for $0.25, $0.30 on the dollar.”

Triad owns about 79,933 net leasehold acres in the Marcellus Shale and 128,094 net leasehold acres in the Utica Shale in Ohio and West Virginia.

The company is also selling its non-core Bakken Shale assets—about 88,600 net acres in the Williston Basin in Divide County, N.D. In the past two years, MHR has sold $700 million worth of non-core assets to redeploy money into the Utica and Marcellus.

The company is closing its Calgary, Denver and Houston offices in the first quarter of 2015 and reducing other expenses.