Continental becomes latest U.S. shale producer to cut budget

9 Aug 2017   Shale Oil

Continental Resources Inc ( CLR.N ) cut its 2017 capital budget on Tuesday, the latest U.S. shale oil producer to cut back on drilling and fracking equipment amid tepid crude prices. The company, which is majority controlled by Chief Executive Harold Hamm, said it would spend $1.75 billion to $1.95 billion this year, down from a prior $1.95 billion target. Continental said it can be cash flow neutral – that is, spend as much as it makes – with oil prices CLc1 between $45 and $51 per barrel. By cutting its budget, Continental is following the direction of many of its U.S. shale peers, who have already cut more than $1.2 billion from their spending plans for the year. Shares of Continental rose 1.1 percent to $32.80 in after-hours trading. Yet even as it cut spending and said it would use fewer drilling rigs and fracking crews […]

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