CALGARY — MEG Energy said Wednesday it is slashing about $900 million from its 2015 capital spending plan, a 75 per cent decline from what was announced less than two weeks ago as the oilsands producer adjusts to uncertainty about oil prices.
The Calgary-based company is now aiming at $305 million of capital spending next year, down from the previous estimate of $1.2 billion. The previous 2015 budget included about $600 million for mid-term growth initiatives at the Christina Lake oilsands project.
MEG didn’t disclose on Wednesday where the spending reductions will be made but said it’s responding to a decline in oil prices, which have fallen to five-year lows.
It said that staff levels “will remain consistent with current levels to maintain operations and to execute future growth.”
Its previous guidance for 2015, issued Dec. 4, said the company would direct $965 million of its 2015 capital budget towards growth projects and $235 million for sustaining and maintaining its assets.
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