Crescent Point Energy is reducing its 2019 capital budget by approximately $500 million compared to last year as a result of the significant decline and volatility in commodity prices.
However, the company is increasing its allotment of spending to its Saskatchewan-focused plays.
Crescent Point announced a capital budget of $1.20 billion to $1.30 billion on Tuesday, down from $1.775 billion in 2018.
Approximately 55 percent of the budget will be spent on the company’s assets in the Viewfield Bakken, Shaunavon and Flat Lake resource plays, compared to 45 percent of the budget last year. Crescent Point said this reflects its “commitment to risk-adjusted returns.”
The company plans to develop these resource plays through a combination of “low-risk, high-return drilling, waterflood programs and new infrastructure investments to support future growth.”
Approximately 15 percent of Crescent Point’s 2019 budget will be spent in Utah’s Uinta Basin and the emerging East Duvernay Shale play in Alberta. This is down from the approximately 25 percent of the budget these plays received in 2018.
The company says it may increase spending in these areas as they continue to advance, or as oil prices improve.
Crescent Point expects to produce 170,000 to 174,000 boe/d in 2019, compared to 177,000 boe/d expected in 2018.