Slashed: SandRidge cuts budget and production outlook
SandRidge cuts budget by half
Oklahoma City-based SandRidge Energy has slashed its capital expenditure budget from $2 billion to $1billion and cut its production outlook for the coming year, blaming recent declines in natural gas prices.
The news follows similar announcements by other natural gas companies such as Chesapeake Energy and Petrohawk Energy in recent weeks.
ScanRidge also plans to sell some assets, a move that sent its shares down 14%, said a Reuters report.
The company also cut its production forecast to 120 billion cubic feet of natural gas equivalent from its prior outlook of 135 Bcfe.
Production is expected to be flat in the third quarter. SandRidge's natural gas and crude oil production for the second quarter was 25.4 Bcfe.
Its third-quarter production was hurt by shut-ins because of the Grey Ranch Plant fire and well work in the Gulf Coast, and also by hurricanes Gustav and Ike.
The company said it still expects production of 100 Bcfe the year end due to strong drilling performance in the West Texas Overthrust, an area in Pecos and Terrell counties in West Texas.
The company also said it will evaluate the potential sale of its East Texas and North Louisiana Cotton Valley and Haynesville assets.