Tag: CAPEX
Red hot Permian Basin economics tighten due to rising CAPEX costs
After land rush, execution risk, rising costs loom for Permian Basin exploration & producers Exploration and production (E&P) companies that successfully acquired Permian Basin acreage in the red-hot ‘land-grab’ market of 2016, are now faced with the challenge of maintaining premium valuations while meeting high-growth expectations in a rising cost environment, according to new research by […]
Expect oil & gas ‘3 R’s’ in 2017: Restructuring, realignment, rebuilding
Study notes some companies hope to “grow” their way out of debt problems; strategy likely unrealistic Though the overall outlook for the oil and gas industry doesn’t seem to be quite as dire as it was a year ago, 2017 is likely to be a year of “3 R’s” for industry players — a year […]
US independents raising 2017 capex, especially in Permian Basin
Encana increased growth guidance to focus on high-return wells, with bulk of capex landing in Permian Basin With oil prices holding steady at around US$45/bbl for several months, many operators feel the worst is over and are consequently raising 2016 production guidance and capex spend, according to Wood Mackenzie. In general, operators are doing more with […]
Low oil prices reduce CAPEX, minimum $3 trillion needed 2016-2020
Over next 5 years, $590 billion of the industry’s debt is maturing, shareholders expect $600 billion in reduced payouts A lower-for-longer oil price environment has taken a toll on the capital spending of exploration and production companies, according to analysis from Deloitte. Actual and announced capex cuts have gone below the minimum required levels to offset depletion, […]
Upstream oil and gas capex cuts impact future growth
Smarter capital allocation and efforts to rework projects to reduce costs starting to pay off Over the last 12 months there has been an unprecedented level of cost cutting in the upstream energy sector, according to an analysis by Wood Mackenzie. The price needed for companies to be cash flow neutral has fallen dramatically but […]
US Lower 48 sustains $150 billion in capex cuts to 2017 – Wood Mackenzie
Midland and Delaware basins hold the largest number of undrilled, low-cost tight oil locations HOUSTON, Texas— Of the more than US$370 billion in global capital expenditure cut by upstream developers across 2016 and 2017, US$150 billion will be slashed in the US Lower 48 alone — more than three times any other single country, according to […]
Global oil upstream spend slashed by $1 trillion since price drop in 2014
Deepest capex cuts are in US Lower 48, where forecast capital investment has halved in 2016-17, falling by US$125 billion Global upstream development spend from 2015 to 2020 has been cut by 22 per cent or US$740 billion since the oil price started to drop two years ago, according to international consultancy Wood Mackenzie, and when cuts to […]
Anadarko Petroleum cuts 2016 capex by $2.5 billion in Permian, D-J basins
Anadarko planning to monetize $3 billion in assets in 2016 Anadarko Petroleum Corporation says it is cutting back in West Texas and the Denver-Julesberg basin while it waits for a more “compelling price environment.” “In 2016, we will continue our disciplined and focused approach, preserving and building value by leveraging our best-in-class capital allocation, enhancing operational efficiencies […]
Range Resources reports Q4 losses, 2016 capex reduced by 45%
Substantially all activity is focused in Marcellus for 2016, Range Resources expects 8-10% increase in production Fort Worth, TX – Range Resources Corporation says it lost money in Q4 and is cutting its capex by 45 per cent for 2016. “Range continued to perform well operationally during the fourth quarter, despite the challenges from declining […]
Chesapeake Energy loses $14.8 billion in 2015, cuts capex 57%
Chesapeake Energy’s 2015 daily production averaged 679,200 boe, year-over-year increase of 8% Chesapeake Energy shares are tumbling after the company announced it lost $14.8 billion in 2015 and plans to cut its capex by 57 per cent for the current year. For the 2015 full year, Chesapeake reported a net loss available to common stockholders […]
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