PROCESSWEST Magazine Online

Companies slashing production during oil glut

March 16, 2020   Don Horne




Energy companies are slashing their spending plans for this year as low oil prices make most production unprofitable, straining cash flow.

Here is a summary of how companies are responding to the slump from Bloomberg News:

Company Response
Husky Energy Cutting spending plan by $1 billion and reducing production forecast by about five per cent
Cenovus Energy Reducing spending 32% to a range of $900 million to $1 billion and lowering production outlook by about five per cent
MEG Energy Slashing capital spending by 20 per cent to $200 million
ARC Resources Lowering capital budget 40 per cent to as much as $300 million and cutting monthly dividend 60 per cent to two cents a share. After March, company will switch to a quarterly dividend of six cents
Seven Generations Trimming capital budget 18 per cent to $900 million and reducing production forecast 7.4 per cent, to 185,000 to 190,000 boe/d
Birchcliff Energy Reducing 2020 capital spending plan by 19 per cent to a range of $275 to $295 million
Surge Energy Deferring some capital spending from the first quarter into the second half of the year and cutting dividend to 1 cent a share per year, from 10 cents
Pipestone Energy Cutting capital spending 60 per cent to a range of $55 to $65 million.
Gran Tierra Lowering capital budget 67 per cent to range of $60 to $80 million.
Bonterra Energy Suspending monthly dividend, starting in April. Setting capital budget of $25 million, a 53 per cent from last year.
Gear Energy Reducing capital spending 74 per cent to $13 million

 

(Bloomberg News)

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