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Commodities

Devon Energy further cuts 2020 capital spending by $300 million

FILE PHOTO: A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma, September 15, 2015. REUTERS/Nick Oxford/File Photo

(Reuters) - Oil and gas producer Devon Energy DVN.N said on Monday it was further reducing its capital expenditures by $300 million to $1 billion for 2020, citing weak oil prices.

The company added it was prepared to further reduce spending if oil prices continue to remain weak.

Earlier this month, Devon cut spending by $500 million to about $1.3 billion from its prior forecast for 2020, joining its shale peers as the industry battles a slump in crude prices.

Devon said on Monday the additional spending cuts will be driven by delays at its Eagle Ford shale operation in southwest Texas, improved capital efficiencies in the Delaware Basin and lower service-cost pricing across its assets.

Shale producers have reduced their expenses following the oil price war between Saudi Arabia and Russia and weakened demand due to the coronavirus outbreak.

Reporting by Shradha Singh in Bengaluru; Editing by Devika Syamnath and Ramakrishnan M.

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