Eagle Ford producer, Cabot Oil and Gas reduces their projected 2016 spending by nearly 50%.

Related: Cabot Oil & Gas Reducing Rigs in the Eagle Ford

Cabot announced last week it will cut its 2016 capital budget to $325 million as a result of the continued low pricing environment. This is a reduction 58 percent from the 2015 capital program of $774 million.

92 percent of Cabot's 2016 budget will go to drilling, completion and facilities capital. The company's Eagle Ford Shale projects will garner about 30 percent of total spending. Other highlights include:

• Total production growth for 2015 expected to be approximately 13 percent
• 40 new net wells in the Marcellus Shale for 2016
• 15 net wells in the Eagle Ford Shale for 2016
• Reduce its rig count to one rig company-wide by mid-February 2016
• 47% reduction from its $615M preliminary budget for the year and 58% lower than its $774M capital program for 2015
• Company lowers the top end of its production growth guidance range for the year to 2%-7% from 2%-10%

Cabot’s activity is focused on its 89,000 net acre position in the Eagle Ford Shale, principally located in Atascosa and Frio Counties, Texas.

Read more at cabotog.com