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.