Oil and gas producer Whitecap Resources Inc. on Aug. 26 cut its capital spending plan by 17% for the second half of 2019 citing global economic uncertainty.
The company, which now sees capex of C$250 million (US$188.32 million) for the period, said the reduction "is prudent" given the continuing trade wars between the United States and China, and recessionary concerns in 2020.
Whitecap now expects full-year 2019 capital expenditure at C$400 million, C$50 million lower than its previous forecast.
The company also praised the Alberta government's recent decision to extend crude oil curtailments by one year, along with raising the amount of a producer's output that is exempt from curtailment to 20,000 bbl/d from 10,000 bbl/d.
Last week, Alberta, Canada's main oil-producing province, said it was extending mandatory curtailments on crude production through 2020 due to uncertainty about when the expanded pipelines may come online.
The move would allow the company to allocate capital to its highest rate of return projects without the risk of the associated production being restricted, Whitecap said.
As part of creating value, Parsley Energy is also divesting what it called “tail-end inventory” in the Southern Midland Basin for about $170 million.
The parties must now renegotiate a deal that would transfer Breitburn's Permian reserves to investors including Elliott and WL Ross through their participation in a $775 million rights offering.
WPX Energy agreed to divest certain assets with a portion of the roughly $200 million worth of sales proceeds slotted for an acquisition within its core Delaware Basin operations.