Cimarex Energy Co., Denver, expects to cut 40-50% from its original 2020 capital investment program of $1.25-1.35 billion due to the drop in oil prices.
The revision assumes $30/bbl WTI price, down from the previous $50/bbl, for the remainder of the year and holds annual oil production flat with 2019 levels, said Tom Jorden, chairman, president, and chief executive officer.
In February, the company’s projected oil production to average 91,000-97,000 b/d, up 9% at the midpoint from 2019 levels, with total equivalent production expected to average 270,000-286,000 boe/d, essentially flat from 2019. The company previously had planned to invest $0.95-1.05 billion on the drilling and completion in 2020 with 90 net wells expected to begin producing during the year. Over 90% of the D&C capital was expected to be spent in the Permian region with the remainder in the Mid-Continent (OGJ Online, Feb. 21, 2020).
The company expects to provide additional details as part of its first quarter earnings release in May.