Noble Energy, Inc. in Houston has sliced $500 million from its 2020 capital expenditure list which amounts to about 30% of its original budget.
The company stated that its remaining capex is in a range of $1.1 to $1.3 billion for the year. Noble Energy has also identified more than $50 million in reductions through operating and other cash costs.
David L. Stover, Noble Energy’s Chairman and CEO, commented, “In light of the recent commodity price downturn, we are sharply reducing capital expenditures. Deferring activity until commodity prices recover protects our investment returns, maintains free cash flow and strengthens the balance sheet.”
Approximately 80% of the capital reduction will occur in the U.S. onshore business where the Company has significant flexibility in drilling and completion activity, with the majority of contractual arrangements on a well to well basis. More than half of these reductions will occur in the Delaware Basin.
Internationally, the Company has identified approximately $100 million in capital reductions coming from major project execution, deferral of non-critical spend into future years and the exploration program. Noble Energy is continuing to move forward the Alen gas monetization project in Equatorial Guinea for first production in early 2021 and will complete pipeline expansion work in Israel.
Source: Noble Energy