By Josh Beckerman
Continental Resources Inc. (CLR) has joined the list of energy
companies reducing 2015 capital budgets as U.S. oil prices have
fallen about 50% from their summer peak.
Continental said its nonacquisition capital expenditure budget
is $2.7 billion. The company had already reduced its budget in
November, to $4.6 billion from $5.2 billion.
The oil producer, which has a strong presence in the Bakken
Shale, said "this revised budget prudently aligns our capital
expenditures to lower commodity prices, targeting cash flow
neutrality by mid-year 2015."
Continental anticipates production growth of 16% to 20% next
year. The company plans to reduce its current average operated rig
count from about 50 to about 34 by the end of first quarter.
U.S. energy companies are starting to cut drilling, lay off
workers and slash spending in the face of an accelerating decline
in oil prices. This month, EOG Resources Inc. (EOG) said it would
shed many of its Canadian oil and gas fields, close its Calgary
office and lay off employees there as it refocuses in the U.S.
Meanwhile, Matador Resources Co. (MTDR) is contemplating
temporarily leaving the Eagle Ford Shale area in South Texas.
On Monday, oil and gas company Rex Energy Corp. (REXX) said its
2015 operational capital budget is $180 million to $220 million,
representing a 43% decrease from the midpoint of its previously
announced plans.
Write to Josh Beckerman at josh.beckerman@wsj.com
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