Capital Spending Being Adjusted
LEG (and most other companies) said they would adjust their capital spending if oil continued to drop. Well, oil has fallen further since Dec and most companies will be doing absolute minimum drilling. LEG is no different - so expect less drilling and capex in HI
SGY 2015 HI guidance reflected the early January oil price - result: minimum drilling and use capex to pay down debt instead.
Rig count will be dropping like a rock each week going forward until the price recovers (more than just a bit - companies will want to see a trend upwards and $60 will be needed to trigger any additional drilling). Just a waste of money at these prices.