Denver-based Whiting Petroleum Corporation has joined the growing list of oil and gas exploration companies that have cut capex budgets for the remainder of the year because of the oil price war and weak demand as a result of the coronavirus.
Whiting cut its capital budget by 30% or about $185, leaving a new budget range of $400 to $435 million. The company expects to drop one rig and one completion crew in the next month.
“In light of the volatility in commodity prices, we have immediately reduced our development activity and plan to maintain a lower level until we see a sustained commodity price recovery,” Bradley J. Holly, Whiting’s Chairman, President and CEO, commented.
He said the new spending plan preserves the company’s liquidity while improving capital efficiency.
Whiting’s operations are most in the Rocky Mountain region with its largest projects in the Bakken and Three Forks plays in North Dakota and the Niobrara play in northeast Colorado.