As it looks to protect its balance sheet in 2016, SM Energy Co. will focus its drilling and completion activity on the Permian Basin “to the maximum extent possible,” shifting to an oilier mix as it weathers the downturn in commodity prices.
Capex
Articles from Capex
As U.S. E&Ps Ax Budgets, Raymond James Forecasting Sharper Decline in Rig Count
Raymond James & Associates Inc. analysts are standing by their call for West Texas Intermediate oil prices to reach $50/bbl later this year in the face of a futures strip that is “simply unsustainable,” but until the price cavalry arrives, the U.S. rig count is going to be hacked even more as producers cut back their spending.
Southern Company Sees Industrial Sales Decline, Bullish On Demand Growth For 2016
Southern Company said Wednesday that positive retail revenue effects from its regulated subsidiaries and successful renewable energy projects at its wholesale subsidiary Southern Power helped offset a year/year decline in industrial sales and a very warm December.
Hess to Cut 2016 E&P Spending by 40%
Hess Corp. plans to spend $2.4 billion on exploration and production (E&P) in 2016, a 40% year/year cut and a 20% drop from the preliminary 2016 guidance of $2.9-3.1 billion the company provided in October.
E&P Capex Outlook Grimmer, With U.S. Spending Possibly Falling 40-50%
Oversupplied oil and natural gas markets, now coupled with sharply declining oil prices, are setting up a dismal year for capital spending by exploration companies, with domestic operators possibly cutting their spend plans by as much as half from 2015, analysts said this week.
NGI The Weekly Gas Market Report
Shell Sharply Reduces BG Merger Value, Lowers 2016 Capex Plans
Royal Dutch Shell plc has reduced its global capital spending by $2 billion to $33 billion in 2016 to deal with low commodity prices and prepare for the pending takeover of BG Group plc. It also slashed the value of the BG merger, first announced last April, by $17 billion.
NGI The Weekly Gas Market Report
Freeport-McMoRan Suspending Dividend, Dropping Rigs in Deepwater GOM
Freeport-McMoRan Inc. (FCX), which for months has been eyeing strategic options for its U.S.-focused oil and gas business, said Wednesday it has suspended its dividend and is dropping deepwater rigs in the Gulf of Mexico (GOM) to cope with deteriorating market conditions.
E&P, OFS Recovery Not Expected For A While, Say Energy Experts
The upstream oil and gas industry, which has managed to stay afloat this year through mergers, debt and derivatives, is poised to hit even choppier seas in 2016 as acquisition activity slows and leveraged companies face increased probabilities for defaulting, according to a cadre of energy experts.
Exco Looking Only to Haynesville Natural Gas Development Through First Half of 2016
Dallas-based onshore operator Exco Resources Inc., pressured for months by low oil prices, said Wednesday it will focus nearly all of its activity in the first half of 2016 on its natural gas portfolio in the Haynesville Shale.
Linn Watching Liquidity, Sees Production Slip in Third Quarter
Fresh from completing a semi-annual borrowing base redetermination, and with an eye on its liquidity, Linn Energy LLC reported a slight decline in total production for the third quarter and indicated that it could spend slightly less on capital expenditures (capex) in 2016.