Factbox: North American oil producers slash budgets by about 30% to cope with oil price rout

Gear Energy

12/03/2020 18:43

March 12 (Reuters) - North America oil and gas producers have slashed their capital
spending by about 30% on average after crude prices crashed early this week, according to
data compiled by Reuters.
    Oil producers have been scaling back spending since the last price crash in 2014, and
the latest cuts come as the coronavirus outbreak crimps demand and a price war between
top producers Saudi Arabia and Russia threatens to flood the oil market, pushing U.S.
crude  CLc1  to about $30 a barrel.
    Devon Energy  DVN.N , Apache Corp  APA.N  and Murphy Oil Corp  MUR.N  on Thursday
became the latest to join a list of producers to slash their spending.
    Earlier, Occidental Petroleum Corp  OXY.N  announced it would cut its dividend, while
oil major Chevron Corp  CVX.N  said it was looking at ways to trim spending that could
lead to lower near-term oil production.
    Here are a list of companies that have cut their spending plans so far:
    
 Company                    RIC        2020 revised capex   2020 previous capex  % change
                                       (midpoint; in mln)   (midpoint; in mln)   
 Occidental Petroleum Corp   OXY.N               $3,600.00            $5,300.00   -32.08%
 Marathon Oil Corp           MRO.N               $1,900.00            $2,400.00   -20.83%
 Cenovus Energy Inc^^        CVE.TO                $690.00            $1,020.00   -32.35%
 Apache Corp                 APA.N               $1,100.00            $1,750.00   -37.14%
 Murphy Oil Corp             MUR.N                 $950.00            $1,450.00   -34.48%
 Meg Energy Corp^^           MEG.TO                $145.00              $182.00   -20.33%
 Birchcliff Energy Ltd^^     BIR.TO                $207.00              $254.00   -18.50%
 TransGlobe Energy Corp*     TGL.TO                  $7.10               $37.10   -80.86%
 PDC Energy Inc              PDCE.O                $814.00            $1,050.00   -22.48%
 Talos Energy^               TALO.N                $407.50              $532.50   -23.47%
 Gear Energy                 GXE.TO                 $13.00               $50.00   -74.00%
 Devon Energy                DVN.N               $1,300.00            $1,800.00   -27.78%
                                                                                         
 Total                                          $11,133.60           $15,825.60   -29.65%
 
* As calculated by Reuters
^ Talos said it will reduce its previously announced 2020 spending guidance by more than
$125 million
^^ Converted to U.S. dollars from Canadian dollars
Notes:
 
** Chevron Corp  CVX.N  said it was looking at ways to reduce spending, but did not
provide details; 2020 organic capex guidance was $20 billion  urn:newsml:reuters.com:*:nL8N2B33ON
     
** Diamondback Energy  FANG.O  said it will reduce capital budget, but did not provide a
new estimate; 2020 capex guidance was $2.8 billion to $3 billion  urn:newsml:reuters.com:*:nL4N2B23BC
 
** Matador Resources  MTDR.N  said it was taking actions to reduce spending, but did not
provide details; 2020 capex for drilling, completing and equipping wells was $690 million
to $750 million  urn:newsml:reuters.com:*:nBw6M2FzWa
 
** California Resources Corp  CRC.N  said it was reducing its investment; 2020 capex
guidance was about $260 million to $500 million  urn:newsml:reuters.com:*:nBw5xj0SHa
 
** Ovintiv Inc  OVV.N  cut second-quarter spending by $300 million and said it was
prepared to further reduce investments throughout the year; 2020 capex guidance was $2.7
billion  urn:newsml:reuters.com:*:nCNWwMd0za
    
($1 = 1.3773 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
 ((arathys.nair@thomsonreuters.com; +1 646 223 8780 (Extn 2726); Twitter: https://twitter.com/ArathySom))