Oklahoma-based oil driller Continental Resources said Tuesday it will lessen its 2015 capital spending plan by as much as $350 million to ensure income in the midst of falling oil prices.
The company that is the largest leaseholder in the Bakken Shale said it is lessening the number of rigs it works there from 10 to eight, and will concede some well fruition.
In reporting second-quarter income a month ago, the oil firm said its capital spending was inclining beneath the $2.7 billion it had planned for the year.
Continental Chief Executive Harold Hamm states to the press, “While we do not believe today’s low commodity prices are sustainable long term, we are committed to living within cash flow until they recover. We are reducing capital expenditures to protect our balance sheet and to preserve the value of our world-class assets until commodity prices improve.”
On Tuesday’s close, West Texas Intermediate (WTI), the U.S. benchmark ended trading at $45.94.
Hamm said production would be 200,000 to 215,000 barrels per day, an increase of 19 to 23 percent in 2015 compared to 2014.