Another energy company is taking drastic steps to preserve its financial integrity while oil prices are in the mid $20 and the coronavirus results in decreased demand for gasoline. This one is based in Denver, Colorado…..Extraction Oil and Gas confirmed it has reduced its drilling and oilfield development spending by 42%.
The company also cut the pay of executives to reduce administrative costs.
The Denver Business Journal reported the company will redue its 2020 capital investment to between $250 million and $300 million and is cutting its general and administrative budget 18% to between $40 million and $50 million this year.
“As we continue to focus on strengthening our balance sheet and maximizing liquidity, we are reducing our activity in light of current challenging economic conditions,” said CEO Matt Owens, in a written statement. “We will continue to monitor oil prices and the economy in general, and we may further adjust our level of activity if market conditions change materially.”
All of the company’s officers elected to cut their salaries and bonuses by 10% immediately, the company said.
The company last month named a new permanent CEO, appointing acting CEO and company co-founder Matt Owens to the position.
Source: Denver Business Journal
