Range Resources Corp. (RRC) and Savanna Energy Services Corp.
(SVGYF) both said they would reduce 2015 capital spending plans in
response to low commodities prices.
Range plans to reduce its spending by a third, and Savanna plans
to cut spending by 29%, the companies said seperately.
The two companies are the latest in a growing list of energy
companies that have trimmed their spending plans amid tumbling oil
prices.
Fort Worth, Texas-based oil and natural gas producer Range is
reducing planned capital expenditures to $870 million from its
December estimate of $1.3 billion.
Range said nearly 95% of its planned capital spending is
targeted toward its operations in the Marcellus shale region, which
the company said allows it to project 2015 production growth of 20%
despite the slimmed spending plans.
The company also said that its fourth-quarter production will be
lower than expected owing to an early propane line fill and
operational flow on Mariner West propane pipeline in November and
December. The Mariner West pipeline was commissioned in late
December but had been anticipated for the first quarter of this
year.
Range estimated its 2014 production increased 24%
year-to-year.
Calgary-based Savanna is cutting its planned capital budget to
$75 million from its earlier estimate of $105 million. Savanna also
slashed its per-share dividend from 3 cents a month to 3 cents a
quarter and said it will suspend its dividend reinvestment
plan.
Write to Tess Stynes at tess.stynes@wsj.com and Maria Armental
at maria.armental@wsj.com
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