Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/cenovus-energy-further-reduces-capital-budget-in-r.shtmlCenovus Energy further reduces capital budget in response to low oil prices
Cenovus Energy Inc. is further reducing its 2015 capital spending in order to preserve cash and maintain the strength
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Cenovus Energy Inc. is further reducing its 2015 capital spending in order to preserve cash and maintain the strength of its balance sheet. The company has identified approximately $700 million in additional capital expenditures originally planned for 2015 that can be deferred until crude oil prices recover.
"We have great assets, we're in a strong financial position and we have the flexibility in our capital plan to make these additional spending reductions without compromising strategic growth projects," said Brian Ferguson, Cenovus President & Chief Executive Officer. "Our plan is to continue to pursue our long-term growth strategy, but at a pace we believe is more in line with the current pricing environment."
In December 2014, Cenovus announced a 2015 capital spending budget of between $2.5 billion and $2.7 billion, an approximate 15% reduction from 2014 levels. Since December, crude oil prices have continued to weaken and the company is anticipating prices may remain low through 2015.
