On January 29th, ConocoPhillips announced fourth quarter results for the 2014 and updated its capex plans for the coming year. Though production is expected to remain high, 2015 projections include a cut in spending for the Eagle Ford.
Plummeting oil prices took its toll during the final months of 2014 with the company reporting a Q4 net loss of $39 million compared with 2013 Q4 earnings of $2.5 billion. Though oil prices have shown some sign of recovery, the company continued to show caution by reducing its expected 2015 capital expenditures to $11.5 billion since its last adjustment in December. Compared to 2014 number, this represents a ~33% reduction in spending.
Read more: ConocoPhillips Announces Capex Reduction in 2015
The biggest cut will be a $1.4 million reduction in spending for development as the company plans to reduce a total of six rigs in the Eagle Ford in 2015.
“[The Eagle Ford] is still very economic, even at current prices. But having said that, it makes more economic sense to defer…We need to run probably three rigs to meet commitments on our leasehold, and we’re also keen to continue to learn on the Eagle Ford because we have a huge inventory there that we could develop over the next couple of decades.”
ConocoPhillips highlights that the Eagle Ford and Bakken combined production increased by 35 percent year-over-year and they are confident that their decisions will help them ride out the current storm.
Read more at conocophillips.com