Continental Resources continues to showcase their flexibility, announcing this week it will be sidelining rigs in the Bakken while reducing its CAPEX once again.
Related: Continental Resources Aggressively Cuts Costs
Three week after reporting the "excellent results' of their second quarter, Continental Resources, Inc. says it now plans to spend approximately $300 to $350 million less than its previously approved capital budget for 2015 in order to deal with the current crude pricing environment. This adjusted spending will be $2.35 billion to $2.40 billion.
“Harold Hamm, Chairman and Chief Executive Officer commented, “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.”
Continental will also join other producers who are sidelining their rigs in the Bakken. The company will reduce its operated rig count in the Bakken from 10 to eight rigs by the end of the month. The Bakken-Three Forks rig count dropped to 69 rigs running across our coverage area by end of the week last Friday.
The company continues to expect production growth of 19% to 23% for the year, compared with 2014, but now expects to exit the year with production in a range of approximately 200,000 to 215,000 barrels of oil equivalent (Boe) per day.