Canadian oil producers slash 2015 capital budgets
Penn West, one of Canada's largest conventional oil producers, also cut its dividend to 3 Canadian cents per share from 14 Canadian cents.
Penn West and Husky join several Canadian oil producers such as Cenovus Energy Inc (CVE.TO: Quote), MEG Energy Corp (MEG.TO: Quote), Athabasca Oil Corp (ATH.TO: Quote) and Tourmaline Oil Corp (TOU.TO: Quote) in cutting investment plans for next year.
Oil prices have nearly halved in the past six months due to tepid demand growth and a supply glut, worsened by major exporter group OPEC's refusal to cut its output ceiling.
Husky, Canada's No. 3 integrated oil company, said its capital budget for 2015 would drop by a third to about C$3.4 billion ($2.92 billion).
The company, controlled by Hong Kong billionaire Li Ka-shing, said about three-quarters of the budget would go into exploration, development and production.
Penn West said its capital budget for 2015 would drop by 26 percent to C$625 million.
Despite the reduced capital spending, neither company forecast big cuts in production.
Penn West trimmed its 2015 production forecast by about five percent to 90,000-100,000 barrels of oil equivalent per day (boe/d). Continued...