WPX Energy, Tulsa, has cut its 2020 capital plan by $400 million to $1.275-1.400 billion. The company expects to maintain its current oil production of about 150,000 b/d for the balance of the year despite the 25% cut to capital, it said Mar. 17.
In late February, on a pro-forma basis, WPX had planned to invest $1.675-1.800 billion in total development capital this year, including $50-75 million for midstream opportunities. The previous budget supported 12 rigs in the Delaware basin upon closing of its acquisition of Felix Energy, which occurred in early March (OGJ Online, Dec. 16, 2019). At part of its previous outlook, the company reported plans to drop one of three Williston basin rigs in this year’s third quarter and expected total production to average 241,000-256,000 boe/d for 2020, including 155,000-165,000 b/d of oil.
The company has no significant debt maturity due until August 2023 with $406 million outstanding, it said.
Additional details and updates are expected during the company’s first-quarter 2020 press release and investor webcast.