Crescent Point Energy Corp said it would cut its capital spending by 28 percent in 2015, becoming the latest Canadian oil and gas producer to trim its spending plans in the face of a sustained fall in global oil prices. Crescent Point said it would spend C$1.45 billion ($1.23 billion) in 2015, mostly on drilling projects, and added that its budget assumptions were "conservative" and "disciplined". Crescent Point said it would spend C$1.45 billion ($1.23 billion) in 2015, mostly on drilling projects, and added that its budget assumptions were "conservative" and "disciplined".
The company had announced its intention to cut its 2015 capital spending budget in November last year, but said at the time that it did not expect its 2015 budget to be "significantly" lower than in 2014.
But the slide in oil prices, which have more than halved since mid-2014, has resulted in a number of Canadian oil and gas companies, including Husky Energy Inc, Cenovus Energy Inc, Athabasca Oil Corp and Tourmaline Oil Corp, slashing capital spending plans for the year.
Crew Energy Inc also said on Tuesday that it expected to spend up to C$185 million in 2015, lower than its 2014 budget of C$246 million. Crescent Point said it expected to spend about C$408 million of its budget in the Viewfield Bakken play in southeast Saskatchewan and about C$301 million in its Shaunavon field in southwest Saskatchewan.
The company said it expected average daily production of 152,500 barrels of oil equivalent per day, a 9 percent increase over its estimated 2014 production.
Oil prices plummeted to fresh 5-1/2 year lows, on Tuesday as worries over a global supply glut intensified.
Brent crude fell as low as $51.23 a barrel on Tuesday, its lowest level since May 2009, while U.S. crude was at $48.94, down $1.10, after falling to $48.47, its lowest since April 2009.
Up to Monday's close of C$24.86, shares of Calgary, Alberta-based Crescent Point had fallen 37 percent in the past three months. The company's U.S.-listed shares have fallen 40 percent over the same period. Source: Reuters