Whiting Reduces Capital Spend by 30 Percent
Whiting Petroleum Corp. has revised its capital budget to a range of $400- to $435 million. At the midpoint, this is a $185 million, or 30%, decrease relative to its previous 2020 capital budget.
The company expects to drop one rig and one completion crew within the next month.
"In light of the volatility in commodity prices, we have immediately reduced our development activity and plan to maintain a lower level until we see a sustained commodity price recovery,” Bradley J. Holly, Chairman, President and CEO, said in a written statement.
“This new spending plan preserves our liquidity while improving capital efficiency. Increased operating efficiencies and strong well performance underpin this plan, and we continue to focus on enhancing cash flow by working with our service providers to further lower well costs and increase well productivity. In addition, we remain on track to exceed our cost reduction goals for lease operating expense and G&A."
Whiting’s operations are focused primarily in the Rocky Mountain region of the United States. Its largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado.
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