MW: Canadian Natural slashes spending, production targets
CALGARY— Canadian Natural Resources Ltd., one of Canada’s largest oil and gas producers, cut its full-year capital spending plans and production forecast on Monday, citing the rapid drop in crude oil prices since setting its initial 2015 budget in early November.
The Calgary-based company CNQ, +0.00% CNQ, +0.21% said it would spend 6.2 billion Canadian dollars ($5.25 billion) on growth projects, down from an earlier target of C$8.6 billion, and increase production of crude oil and natural gas liquids about 7% over 2014 levels, down from an earlier projection of around 11% growth.
Canadian Natural said the slimmer budget will impact its drilling activity in North America and overseas, as well as a defer about C$470 million that had been earmarked for a new oil sands project “until such time as commodity prices stabilize at levels that justify such capital expenditures.”
The company also left the door open for more spending cuts as the year progresses, saying that it would “further curtail capital spending if required.”
The size of the reduction is larger than the C$2 billion Canadian Natural had said it would consider trimming when it announced a 2015 budget on Nov. 6.
