Canadian oil producer Crescent Point Energy Corp. (NYSE: CPG) on Jan. 15 cut its 2019 capital budget by 30% compared to last year, blaming the recent decline in oil prices.
Brent crude has fallen by more than 30% since reaching a four-year high of $86.74 per barrel in October last year, partly due to concerns over slowing global demand for the fossil fuel.
The company sees its 2019 capex in the range of C$1.2 billion (US$904.70 million) to C$1.3 billion.
Its budget forecast for 2018 was C$1.78 billion. But it would be C$35 million below the original forecast, the company said Jan. 15.
The Calgary, Alberta-based company expects 2019 production to fall as it sold some of its assets in 2018.
Crescent Point expects its output to be in the range of 170,000 to 174,000 barrels of oil equivalent per day (boe/d) in 2019, well under last year's forecast of 177,000 boe/d. (US$1 = C$1.3264)
Recommended Reading
Benchmark Closes Anadarko Deal, Hunts for More M&A
2024-04-17 - Benchmark Energy II closed a $145 million acquisition of western Anadarko Basin assets—and the company is hunting for more low-decline, mature assets to acquire.
‘Monster’ Gas: Aethon’s 16,000-foot Dive in Haynesville West
2024-04-09 - Aethon Energy’s COO described challenges in the far western Haynesville stepout, while other operators opened their books on the latest in the legacy Haynesville at Hart Energy’s DUG GAS+ Conference and Expo in Shreveport, Louisiana.
Mighty Midland Still Beckons Dealmakers
2024-04-05 - The Midland Basin is the center of U.S. oil drilling activity. But only those with the biggest balance sheets can afford to buy in the basin's core, following a historic consolidation trend.
Mesa III Reloads in Haynesville with Mineral, Royalty Acquisition
2024-04-03 - After Mesa II sold its Haynesville Shale portfolio to Franco-Nevada for $125 million late last year, Mesa Royalties III is jumping back into Louisiana and East Texas, as well as the Permian Basin.