Occidental Petroleum Corp. will further cut its 2020 capital spending to $2.7-2.9 billion from its original 2020 guidance of $5.2-5.4 billion, a midpoint reduction of 47%.
In early March, the company first cut 2020 capital spending by $1.7 million to $3.5-3.7 billion (OGJ Online, Mar. 10, 2020).
At current commodity prices, 2020 annual production from continuing operations is expected to be 1.275-1.305 MMboe/d, a reduction of 6% compared to prior guidance of 1.36-1.39 MMboe/d.
Oxy also will reduce 2020 operating and corporate costs by at least $600 million compared to the original 2020 plan, including salary reductions for executives. The cost reductions are in addition to operating and overhead synergies of $1.1 billion expected to be fully realized this year, the company said. Overall, SG&A, Other Operating Expense, and Exploration Overhead are expected to be reduced to $500 million on a future quarterly run-rate basis. Operating cost reductions are expected to lower 2020 domestic operating costs to $7.00/boe.
