Tulsa-based WPX Energy said March 6 it completed its previously announced acquisiton of Felix Energy, which has operations in eastern portion of Delaware Basin. Felix was producing 60,000 boed at closing with 58,500 net acres.
WPX also said March 17 it is cutting $400 million from its 2020 capital expense budget. The revised capital plan of $1.275 million to $1.4 million maintains WPX’s current oil production of 150,000 b/d for 2020. WPX said Feb. 26 its original 2020 capital budget would support 12 rigs in Delaware Basin.
Other capex budget amendments announced recently include:
Callon Petroleum of Houston said March 17 it is reducing its capital plan for 2020 to $700 million to $725 million from $975 million, its current operated rig count to 5 from 9 before the end of 2020Q2, and its hydraulic fracturing crews to 2 from 5 after completion of in-process projects. Plans for 2020 and early 2021 call for 3 to 4 drilling rigs (2 to 3 in Permian Basin and 1 in Eagle Ford). Callon said it is shifting capital allocation to high-return, shorter-cycle projects in Midland Basin and Eagle Ford while preserving long-term, co-development strategy in Delaware Basin. Callon also said, “In the Delaware Basin, initial production from the five-well Wally project is currently performing above expectations.”
Centennial Resources of Denver reduced its operated rig program to 1 (from 5 at the beginning of March) and cut its original capital expenditure budget ($590 million to $690 million) by 50 percent. Centennial is an independent company with assets in Permian’s Delaware Basin.
Cimarex Energy of Denver expects a 40-to-50 percent reduction in its 2020 capital investment program from its original guidance of $1.25 billion to $1.35 billion with flat oil production growth. Cimarex is an independent company with principal operations in Culberson and Reeves counties in Texas and Eddy and Lea counties in New Mexico and also mid-continent. Its original plan for 2020 said it expected 9 percent growth in oil production and added, “Over 90 percent of the drilling and completions capital will be invested in the Permian region.”
Devon Energy of Oklahoma City said Monday it will defer Eagle Ford activity as part of its plan to cut an additional $300 million from 2020 capital budget. Devon’s revised capital budget of $1 billion is a reduction of 45 percent from its original plan of $1.8 billion. Devon’s said its capital savings will also come from “improved capital efficiencies in the Delaware Basin.”
Diamondback Energy of Midland said Tuesday it anticipates taking a 1-to-3 month break from completions after earlier announcing a break of 1 month. After returning to operations, Diamondback plans to operate 3-to-5 completion crews and complete between 170 and 200 gross wells. The company’s 2020 capex guidance is $1.5 billion to $1.9 billion. It plans to exit 2020Q3 operating 8 drilling rigs and exit the year operating 7 drilling rigs. Fullyear revised oil production is 183,000 to 193,000 b/d. A majority of its oil production will flow through Epic and Gray Oak pipelines beginning in April.