E&P

Capital spending reductions by exploration firms and the pace of falling rigs have moved beyond trivial and now pose real dangers to 2015 prospects, according to analysts.

Houston’s Halcon Resources Corp., which in November reduced 2015 capital expenditures by half of 2014, on Thursday cut that forecast by half again. The Permian Basin unit of American Energy Partners LP (AELP) also is setting its sights lower.

Matador Resources Co. said it plans to scale back its drilling program over the next few months, dropping two rigs deployed in the Eagle Ford Shale in South Texas but keeping three rigs in the Permian Basin in southeast New Mexico and West Texas, a familiar refrain as exploration and production (E&P) companies of all stripes continue to grapple with the collapse in world crude oil prices.

Developments over the controversial Keystone XL oil pipeline continued on Friday, after the Nebraska Supreme Court ruled that a law granting Gov. Dave Heineman the power to approve the pipeline’s route through the state could stand.

U.S. operators have begun implementing various ways to maintain their exploration and development programs in the United States, with some tweaking hedging strategies, others working with lenders and some scrapping expansion plans. Even more appear to be cutting back on employees and contractors, according to Friday’s jobs report.

The Pennsylvania Department of Conservation and Natural Resources (DCNR) has discovered that some Marcellus Shale operators could be wrongly deducting post-production fees from royalties paid to the state under land they have leased in public forests, according to a department representative.

More than two years after they announced the project, backers of the NEXUS Gas Transmission system have submitted their application for pre-filing review at FERC.

In a surprise move, Sue Ann Arnall, the ex-wife of oil baron Harold Hamm, has reportedly cashed a handwritten alimony check for nearly $1 billion.

Magnum Hunter Resources Corp.’s midstream subsidiary recorded a new record throughput of 406,000 MMBtu, exiting 2014 above its anticipated rate of 400,000 MMBtu/d, the company said.