Energy

Oil Companies Capex Down More Than 50% for 2016

Paul Ausick

Published: March 15, 2016 11:50 am

Last Updated: April 28, 2020 3:03 am

The announced cuts to capital spending (capex) in the oil and gas exploration and production (E&P) business average over 50%, with cuts of up to 80% at some firms. One natural gas producer has said it will cease all drilling in 2016, reducing its capex to $125 million from $1.8 billion in 2015.

We have taken a look at several independent primarily oil E&P companies that have announced large capex cuts for 2016. According to a report from Nomura, the five largest year-over-year percentage cuts to capital spending are:

• Devon Energy Corp. (NYSE: DVN), down 81%, from $5.31 billion to $1 billion
• Whiting Petroleum Corp. (NYSE: WLL), down 80%, from $2.46 billion to $500 million
• Murphy Oil Corp. (NYSE: MUR), down 77%, from $2.55 billion to $580 million
• Energen Corp. (NYSE: EGN), down 76%, from $1.15 billion to $275 million
• Oasis Petroleum Inc. (NYSE: OAS), down 76%, from $820 million to $200 million

And that natural gas producer? That’s Southwestern Energy Co. (NYSE: SWN), reported to be slashing capex from $1.8 billion to just $125 million, a drop of about 93%.

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