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Two Dallas-Fort Worth oil and gas independents make deep capital spending cuts

Range Resources and Denbury Resources reduce capital spending by 40% each.

Two independent oil and gas companies based in Dallas-Fort Worth are substantially cutting back on capital spending plans as the coronavirus pandemic saps demand and a global standoff depresses oil prices.

Here are actions announced Tuesday:

Range Resources

Fort Worth-based Range Resources Corp. is cutting $90 million from its capital budget this year.

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Range’s capital spending will fall from $520 million to $430 million, the company said Tuesday. It spent $728 million last year to drill and complete wells, buy land and build natural gas-gathering systems.

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Despite the 40% spending cut, the company said it expects to continue producing the equivalent of 2.3 billion cubic feet a day from its operations in the Marcellus shale play in Pennsylvania. Nearly 70% of its production is natural gas.

“Looking beyond short-term demand headwinds, we see the potential for meaningful improvements in natural gas and NGL pricing as significant reductions in energy investment across U.S. shale are occurring while global demand for cleaner, efficient fuels like natural gas and NGLs are increasing," said CEO Jeff Ventura in a statement.

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Range Resources’ revenue totaled $2.8 billion in 2019, down from $3.2 billion in the previous year.

Denbury Resources

The Plano-based independent is cutting its capital budget nearly in half, axing $80 million from its planned spending this year.

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Denbury said Tuesday that it now plans to spend $95 million to $105 million in 2020 — a 44% reduction. It’s also deferring a development project expected to get underway this year.

“These steps are being taken to reduce cash expenditures and preserve liquidity in light of the more than 50% decline in NYMEX WTI oil prices over the last few weeks and continuing uncertainty about the economic impact of the COVID-19 pandemic,” the company said.

Based on current projections, Denbury said it expects oil and gas production to fall this year by the equivalent of 3,000 barrels of oil a day as a result of spending cuts. It operates in the Gulf Coast and Rocky Mountain regions.

“We remain highly focused on controlling what we can control in this challenging and uncertain environment,” CEO Chris Kendall said in a statement.

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