Ovintiv Trims Q2 Capex By $300M To Cope With Oil Price Plunge
Zacks Investment Research | Mar 13, 2020 12:05AM ET
The recent softness in the commodity prices compelled energy players to reanalyze their strategies as well as reconsider capex cuts. Notably, after conforming to the capital discipline during the crude downturn (from mid-2014 to 2016), energy companies again reckoned elevating their capital expenditure since 2017. However, a shrinkage in the commodity price convinced explorers and producers to take a relatively cautious approach to capex programs again this year. Instead of augmenting their capital outlays, the energy players are now finding it wiser to focus on adding shareholder value.
West Texas Intermediate began the year with a little more than $60 per barrel of oil. However, this uptrend was pretty short-lived with the commodity price tanking to multi-year lows to settle at $31.13 on Mar 9.
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