Concho Resources Cuts 2015 Spending By One-Third
HOUSTON, Jan 5 (Reuters) - Concho Resources Inc, a U.S. oil and gas company that drills in the Permian Basin, on Monday said its capital spending will total $2 billion this year, down 33 percent from a forecast made in November when crude oil prices were much higher.
Concho, based in Midland, Texas, also said it now sees 2015 oil and gas output growing 16 percent to 20 percent, down from its November forecast of 28 percent to 32 percent.
When Concho first announced its capital plans for this year, crude oil was trading around $80 per barrel, and the company said it would increase spending, making it a relative outlier.
On Monday, crude oil futures prices fell to their lowest since 2009, below $50 a barrel, because of a global supply glut and lackluster demand.
Concho said it also plans to reduce the number of drilling rigs it its running from a current count of 36 to 25 rigs beginning in the second quarter through year end.
(Reporting by Anna Driver; Editing by Steve Orlofsky)
WHAT DO YOU THINK?
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.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds