Consol Energy slashes 2016 E&P capital budget

Consol Energy on Wednesday sharply cut its 2016 capital budget for its E&P division, Kallanish Energy reports.Capital expenditures (CAPEX) for E&P is now set at $205 million to $325 million $185 million lower than the previous guidance of $400-$500 million, based on the guidance midpoint.Total E&P capital, including midstream, has been cut by roughly $1 billion since 2014 – from $1.2 billion to the projected $205-$325 million with corresponding production projected to grow 60%, from 235.7 billion cubic feet-equivalent (Bcfe), to roughly 377 Bcfe, respectively.The reduction in 2016 E&P CAPEX “reflects continued benefits from drilling and completion efficiencies, and the deferral of mainly wet gas completions into 2017,” Consol said. Consol’s updated 2016 plan reflects the company s operational flexibility to respond effectively to the continued weakness in commodity prices, as well as the company s commitment to de-lever the balance sheet through the execution of the organic fr
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