Capex

Halcon Resources Corp. is unofficially planning to keep three rigs deployed in the Williston Basin and a portion of the Eagle Ford Shale in 2016, and it could cut capital expenditures (capex) by 25%, even as it set some new drilling records during 3Q2015.

After posting substantial production growth for the third quarter, Gulfport Energy Corp. said it plans to strategically curtail 100 MMcf/d of natural gas production between now and early 2016 in response to current commodity pricing.

Spending for oilfield equipment (OFE) has fallen sharply over the past year, mostly impacting the U.S. onshore, but recovery should begin by 2017 and accelerate thereafter, according to new research by UK-based Douglas-Westwood Ltd. (DW).

Third quarter results for exploration companies are about to begin, with the oilfield services sector kicking things off this week and next, and interest is especially keen on what the spending plans are for 2016. Consensus by three analyst groups is a double-digit decline from 2015 levels, with spending well below the halcyon days before the oil crash.

Phillips 66 plans to spend $3.6 billion on capital expenditures (capex) in 2016, an 18.1% decrease from 2015, while earmarking an additional $2 billion for an increase in the company’s share repurchase program.

Energy analysts are beginning to piece together capital spending outlooks for 2016 based on surveys, conversations and anecdotes, with one common theme emerging: it’s lower for longer. Just how much longer is the puzzle.

Sanchez Energy Corp. said it achieved record production during the second quarter and reduced its capital expenditures (capex) budget for 2015, but it raised its production guidance for the rest of the year, as it focuses on high-quality, low-cost oil and condensate resource plays in the Eagle Ford Shale.

More residential energy consumers are turning to natural gas, but gas consumption growth is trailing the increase in customers due to energy efficiency…

More residential energy consumers are turning to natural gas, but gas consumption growth is trailing the increase in customers due to energy efficiency and conservation, Fitch Ratings said. Still, the outlook for local distribution companies (LDC) is good, given an improved regulatory environment and the adoption of revenue decoupling and weather normalization mechanisms.