Continental Resources Cuts 2015 Budget Amid Oil-Price Decline

   By Josh Beckerman 
 
 

Continental Resources Inc. (CLR) has joined the list of energy companies reducing 2015 capital budgets as U.S. oil prices have fallen about 50% from their summer peak.

Continental said its nonacquisition capital expenditure budget is $2.7 billion. The company had already reduced its budget in November, to $4.6 billion from $5.2 billion.

The oil producer, which has a strong presence in the Bakken Shale, said "this revised budget prudently aligns our capital expenditures to lower commodity prices, targeting cash flow neutrality by mid-year 2015."

Continental anticipates production growth of 16% to 20% next year. The company plans to reduce its current average operated rig count from about 50 to about 34 by the end of first quarter.

U.S. energy companies are starting to cut drilling, lay off workers and slash spending in the face of an accelerating decline in oil prices. This month, EOG Resources Inc. (EOG) said it would shed many of its Canadian oil and gas fields, close its Calgary office and lay off employees there as it refocuses in the U.S. Meanwhile, Matador Resources Co. (MTDR) is contemplating temporarily leaving the Eagle Ford Shale area in South Texas.

On Monday, oil and gas company Rex Energy Corp. (REXX) said its 2015 operational capital budget is $180 million to $220 million, representing a 43% decrease from the midpoint of its previously announced plans.

Write to Josh Beckerman at [e-mail]

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