RE:Smart management making the right movesThe best part is they will be saving about $100 million in spending with only a modest decline to exit production:
Pipestone Energy is pro-actively protecting its balance sheet by reducing its forecasted annual capital spending program from $145-million to $155-million to $55-million to $65-million. The capital reduction results in a modest change to Pipestone Energy's 2020 previous production guidance from 18,000 to 20,000 barrels of oil equivalent per day (boe/d) to 17,000 to 18,000 boe/d. Exit production guidance is also reduced from 20,000 to 22,000 boe/d to 16,000 to 17,000 boe/d, as a direct result of the deferral of one pad (six wells) being brought on production this year. At a revised forecast price deck of $40 (U.S.) per barrel WTI (West Texas Intermediate) and $1.75 (Canadian) per gigajoule AECO, the company expects to generate corporate cash flow of $55-million to $65-million. Through a combination of swaps and collars, the company has about 3,200 bbl/d of Canadian-dollar-denominated WTI oil hedged at about $79 per barrel during the first half of 2020, which represents more than 60 per cent of its forecast after royalties condensate production for that period.