Ovintiv cuts another $200 million from second quarter investments

Ovintiv Inc. will cut another $200 million from its second quarter investments, bringing total capital reductions in the second quarter to $500 million.

No details regarding any operational changes associated with the new cuts were given but are expected with the company’s first quarter earnings and operating results.

In March, the company noted plans to drop roughly two-thirds of its operated rigs and reduce second quarter 2020 capital investments $300 million and full year cash costs by $100 million (OGJ Online, Mar. 12, 2020).

At the time, the company said 10 operated rigs would be dropped immediately with another six operated rigs dropped in May. Following those detailed reductions, Ovintiv was expected to have three operated rigs in the Permian, two in the Anadarko, and two in the Montney.