HOUSTON, TX – Houston based oil company EOG Resources is cutting its 2020 capital budget plan by nearly a third despite record low commodity prices.
The company stated Monday that it intends to spend roughly $4.3 billion to $4.7 billion on drilling, hydraulic fracturing and other capital projects in 2020 which marks a 31 percent reduction of the company's previously announced budget in 2019.The company regarded as one of the most efficient shale drillers in the U.S., says it will "remain profitable even with oil at $30 per barrel".
“Year after year, EOG keeps getting better, delivering record operating performance in 2019. Significant capital efficiency improvements from strong well productivity and sustainable cost reductions allowed us to deliver higher production with less capital investment than we planned at the beginning of the year,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer.
Due to the current decline in crude oil prices, the 2020 capital plan allocates slightly less capital to growing oil production than in 2019. To continue to improve the company, the 2020 plan allocates more capital than in 2019 to fund new high‐quality drilling potential and high‐return infrastructure to further lower EOG’s cost structure and environmental footprint. With the benefit of sustainable cost reductions and operational efficiencies, EOG expects to complete approximately 800 net wells in 2020 compared with 750 net wells in 2019.
EOG Resources is a large independent oil and gas exploration and production company, headquartered in Houston, Texas, with operations in the United States. For more information, visit eogresources.com.