Goodrich, Oasis Petroleum Cut Spending For 2015 As Oil Slides


Dec 10 (Reuters) - Goodrich Petroleum Corp and Oasis Petroleum Inc said they expect to spend much less on exploration and production next year, joining a list of U.S. oil and gas companies cutting capital spending as oil prices plunge.

Goodrich shares fell as much as 14.7 percent to $3.57 in early trading. Oasis' shares fell as much as 13.3 percent to a record low of $11.01.

Both stocks were among the top losers on the New York Stock Exchange on Wednesday.

Several large oil producers, including ConocoPhillips and Apache Corp, have set lower capital spending budgets for 2015, rattled by a near 40 percent drop in global crude prices since June. Some have said they will deploy fewer drilling rigs next year.

Global oil and gas exploration projects worth more than $150 billion are likely to be put on hold in 2015, according to Norwegian consultancy Rystad Energy.

Goodrich lowered its capital spending budget for 2015 to $150 million-$200 million. The company has budgeted spending of $325-$375 million for 2014, but said spending would likely be at the lower end of that range.

Oasis Petroleum said it expects to spend $750 million-$850 million in 2015. It expects to spend about $1.43 billion in 2014.

Goodrich also said on Wednesday it would explore strategic options for all or a part of its Eagle Ford shale asset in South Texas to boost liquidity.

The company said this would "significantly enhance" its ability to fund development activities when oil prices recover.

The asset could be worth about $185 million, Stifel analyst Michael Scialla wrote in a note.

Goodrich said it expects 2015 oil production to increase about 30 percent-42 percent over last year. Oasis expects its production to increase 5 percent-10 percent next year.

Oasis Petroleum, which was operating 16 rigs as of Sept. 30, said it expects to run six rigs by end March.

(Reporting by Sneha Banerjee and Kanika Sikka in Bengaluru; Editing by Siddharth Cavale)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Executive Protection Coordinator
Expertise: Risk Management|Security
Location: TX
United States Denver: Proposals Specialist
Expertise: Business Development|Marketing|Sales
Location: Denver, CO
Landman - Midstream Surface Land
Expertise: Landman
Location: The Woodlands, TX
search for more jobs

Brent Crude Oil : $50.8/BBL 0.47%
Light Crude Oil : $47.97/BBL 0.56%
Natural Gas : $3.08/MMBtu 0.98%
Updated in last 24 hours