Magnum Hunter to significantly reduce capital expenditure | Shale Energy Insider

Independent oil and gas company, Magnum Hunter Resources, which is active in the Utica, Marcellus and Bakken shale gas plays, has said it is to cut capital spending on its projects, citing low commodity prices.

In a conference call last week, chief executive Gary Evans said the expectation was that natural gas prices were expected to remain low until at least the end of the year.

Evans said that the board will meet this week to discuss the fiscal plans for the year, but expects expenditure not to exceed $100 million.

He explained that “when you’re in a death spiral of prices in this business, you’re crazy to be spending money… we’re not spending any money right now.”

The company is set to produce the equivalent of between 30,000 and 35,000 barrels of oil per day in 2015.

via Magnum Hunter to significantly reduce capital expenditure | Shale Energy Insider.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s