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UPDATE 1-MEG Energy slashes 2016 budget by nearly 50 pct

Published 2016-02-04, 05:50 a/m
© Reuters.  UPDATE 1-MEG Energy slashes 2016 budget by nearly 50 pct
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Feb 4 (Reuters) - Canadian oil sands producer MEG Energy
Corp MEG.TO posted a bigger-than-expected quarterly loss and
cut its capital spending estimate for 2016 by nearly 50 percent
to counter a prolonged slump in crude oil prices.
The company cut its capital expenditure target to C$170
million ($125 million) from C$328 million it had set just two
months ago.
Oil producers have been tightening spending to cope with a
more than 70 percent fall in oil prices since June 2014. Still,
production remains resilient due to increased efficiencies and
lower prices for oilfield services.
MEG said on Thursday the budget cut would not impact its
2016 production target of 80,000-83,000 barrels per day.
The company's net loss widened to C$297.3 million, or C$1.32
per share, in the fourth quarter ended Dec. 31, from C$150.1
million, or 67 Canadian cents per share, a year earlier.
Operating loss, which excludes most one-time items, was 62
Canadian cents per share, bigger than analysts' average estimate
of 57 Canadian cents, according to Thomson Reuters I/B/E/S.
Revenue fell 32 percent to C$1.93 billion.

($1 = 1.37 Canadian dollars)

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