Whiting Petroleum Corp. and Hess Corp. both announced major capital spending cuts in the Bakken.
Whiting said it will reduce its budget by $185 million down to a range of $400 to $435 million while only employing one drilling rig and one frac crew.
With an overall spending cut of $800 million, Hess will reduce its rig fleet from six to one rig by May in North Dakota. Its full year budget will drop to $2.2 billion with more emphasis placed on its Guyana assets.
“With 80% of our oil production hedged in 2020, our significantly reduced capital and exploratory budget and our new three year loan agreement, our company is well positioned for this low price environment,” CEO John Hess said. “Our focus is on preserving cash and protecting our world class investment opportunity in Guyana.”
Whiting anticipates a minor reduction its production forecast to range between 117,700 BOEPD to 118,400 BOEPD while Hess overall oil production dropping 5,000 BOPD to 175,000 BOPD.