Range Resources, Savanna Energy Cut Spending Amid Oil-Price Drop -- Update

   By Tess Stynes and Maria Armental 
 

Range Resources Corp. (RRC) and Savanna Energy Services Corp. (SVGYF) both said they would reduce 2015 capital spending plans in response to low commodities prices.

Range plans to reduce its spending by a third, and Savanna plans to cut spending by 29%, the companies said seperately.

The two companies are the latest in a growing list of energy companies that have trimmed their spending plans amid tumbling oil prices.

Fort Worth, Texas-based oil and natural gas producer Range is reducing planned capital expenditures to $870 million from its December estimate of $1.3 billion.

Range said nearly 95% of its planned capital spending is targeted toward its operations in the Marcellus shale region, which the company said allows it to project 2015 production growth of 20% despite the slimmed spending plans.

The company also said that its fourth-quarter production will be lower than expected owing to an early propane line fill and operational flow on Mariner West propane pipeline in November and December. The Mariner West pipeline was commissioned in late December but had been anticipated for the first quarter of this year.

Range estimated its 2014 production increased 24% year-to-year.

Calgary-based Savanna is cutting its planned capital budget to $75 million from its earlier estimate of $105 million. Savanna also slashed its per-share dividend from 3 cents a month to 3 cents a quarter and said it will suspend its dividend reinvestment plan.

Write to Tess Stynes at [e-mail] and Maria Armental at [e-mail]

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