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Monday, January 26, 2015

Magnum Hunter Cuts Way Back on Spending, Will Drill No New Utica Shale Wells This Year

From Reuters:
Oil and natural gas producer Magnum Hunter Resources Corp said on a conference call on Friday it has cut all capital spending amidst plunging commodity prices, expecting prices to remain low for at least the next year. 
The small exploration company focused on natural gas production in the Marcellus and Utica Shales, had scheduled the call with investors with one day's notice to assuage concerns about its future as its shares have plunged 81 percent in the past year amid sinking natural gas prices. 
"Rumors of our death have been greatly exaggerated," Chief Executive Gary Evans told investors. 
Magnum's board plans to meet on Monday to discuss 2015 budget plans. At most, the company will spend $100 million this year, Evans said.

"When you're in a death spiral of prices in this business, you're crazy to be spending money," Evans said. "We're not spending any money right now."
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