Centennial Resource Development to cut 2020 capital 50%

Centennial Resource Development Inc., Denver, has reduced its operated rig program to one rig from five, and anticipates its capital expenditure budget for 2020 will be about 50% lower than the guidance range provided in late February, assuming it continues to run one rig for the remainder of the year. 

Previous guidance detailed a 2020 budget of $590-690 million that was 28% lower compared to 2019, noting plans to drop its operated rig program to five from four (three in Reeves County, Tex., and one in Lea County, NM) in April (OGJ Online, Feb. 25, 2020). At levels previously planned, the company previously was targeting crude oil production growth of 3% during the year.

An update to the 2020 financial and operational plan is expected concurrent with the release of the company’s first quarter financial results.