Capex

XTO Energy Inc. has sliced more than $1 billion from its 2009 capital expenditure (capex) plans because of low commodity prices and the oversupplied natural gas markets, the company said Tuesday. However, even with the cuts, 2009 gas-weighted production volumes are predicted to jump 14% over 2008 levels.

Rapidly rising cash flow from growing production and high commodity prices has led Houston-based Edge Petroleum Corp. to more than double its capital spending budget for the year. The company’s board of directors approved an increase in its 2003 capital spending budget to $35 million, compared to the original $15.3 million budgeted.

Although there have been few if any formal announcements about increases in exploration and capital spending, there has been a huge increase in the rig count since it bottomed out a little more than a month ago, indicating producers probably aren’t waiting around to take advantage of a favorable 12-month gas futures strip, Raymond James & Associates said in an equity research note.