The reductions to the company's 2020 capital budget will be primarily achieved by shifting from a six-rig program to one rig in the Bakken, which is expected to be completed by the end of May. Most discretionary exploration and offshore drilling activities, excluding Guyana, will also be deferred.
In 2020, approximately 80% of the company's oil production is hedged by put options, with 130,000 barrels a day at $55 per barrel West Texas Intermediate put options and 20,000 barrels a day at $60 per barrel Brent put options. In addition, the company entered 2020 with more than $1.5 billion in cash and cash equivalents on its balance sheet and has a $3.5 billion undrawn revolving credit facility and no material debt maturities until 2027.
Quite a lot has been going on:
EOG Resources cuts budget as oil prices continue to fall - HoustonChronicle.com
Houston oil company EOG Resources is cutting its 2020 capital budget by nearly a third amid record low commodity prices.
The company said Monday that it plans to spend $4.3 billion to $4.7 billion on drilling, hydraulic fracturing and other capital projects in 2020. The figure marks a 31 percent reduction of the company's previously announced budget.
The company regarded as one of the most efficient shale drillers in the U.S., says it will remain profitable even with oil at $30 per barrel.
Hess Midstream cuts budget, braces for lower pipeline volumes - Houston Chronicle
Houston pipeline operator Hess Midstream is cutting its budget and lowering investor expectations for 2020 as the company braces for lower volumes of crude oil, natural gas and produced water to be sent through its networks.
In a Tuesday morning statement, Hess reported that the company is cutting is 2020 budget for expansion projects by 20 percent down to $260 million while its 2021 expansion budget has been cut by 55 percent down to $100 million. The company's maintenance budget of $15 million remains unchanged.
In The Oil Business, Everything Flows Downstream, Including The Pain
A Halliburton Co. worker walks through an Anadarko Petroleum Corp. hydraulic fracturing (fracking) ... [+] site north of Dacono, Colorado, U.S. Photographer: Jamie Schwaberow/Bloomberg
When I had the opportunity to interview Jeff Miller for a magazine article in late 2016, a few months before he was named Halliburton's CEO in early 2017, the service industry giant was still in the process of fully recovering from from the industry's downturn that began in 2014. In the course of that interview, Miller talked at length about the challenges of trying to maintain a stable, qualified work force through the boom and bust cycles of the oil and gas industry.
Many things are taking place:
Pioneer Natural Resources cuts budget nearly in half as oil falls below $30 - Midland
Irving oil company Pioneer Natural Resources is cutting its 2020 budget in nearly half as crude prices slipped below $30 per barrel.
* * *
The exploration and production company said late Monday afternoon that it plans to spend between $1.7 billion to $1.9 billion on drilling, hydraulic fracturing and other capital projects in 2020. The figure marks a 45 percent reduction of the company's previously announced budget.
Some $100 million of the budget has been earmarked for projects to source and move freshwater for its operations as well as move and dispose of oilfield wastewater. The company plans to cut the number of drilling rigs it uses in in half from 22 to 11 over the next two months.
Seven of the most prolific Texas shale drillers cut $7.6 billion from budgets as oil prices
The most prolific shale drillers in Texas have cut at least $7.6 billion from their combined 2020 capital expenditures budgets while several more are expected to follow suit as crude oil prices fall to lowest levels since the bottom of the last oil bust, which was considered worst in a generation.
Exxon Mobil, the Texas-based oil major, Concho Resources of Midland and Pioneer Natural Resources of Irving this week became the latest oil and gas companies to promise cuts to their spending as the coronavirus outbreak brings the global economy to a halt and erodes energy demand. Oil fell to $26.95 a barrel in New York Tuesday, just above the low of $26.21 a barrel reached in February 2016.
Amid 'Perfect Storm,' Oklahoma Energy Companies Gear Up For Budget Cuts And Possible Layoffs |
The convergence of COVID-19 and recent OPEC disagreements has been called a perfect storm for Oklahoma. Journal Record editor Russell Ray discusses how, amid the concerns, energy companies in the state are gearing up to slash costs and possibly implement more layoffs.
* * *
Jim Johnson: This is the Business Intelligence Report, a weekly conversation about business news in Oklahoma. I'm Jim Johnson, in this week for Drew Hutchinson. And joining me is Russell Ray, editor of the Journal Record. Hi, Russell.
PM urged to suspend all business rates bills amid coronavirus crisis - Retail Gazette
Some of the UK’s biggest retailers have come together in a rare moment of unity to urge Boris Johnson to suspend all business rates bills during the coronavirus pandemic.
In a letter – sent by Moss Bros this afternoon and signed by the Retailers Rates Action Group, and seen by Retail Gazette – the Prime Minister is urged to introduce a new package of temporary measures to help retailers survive the economic impact of Covid-19 as it moves to its most serious stage.
No comments:
Post a Comment