Newspaper article THE JOURNAL RECORD

Continental Resources Cuts Two-Thirds of Cap-Ex Budget

Newspaper article THE JOURNAL RECORD

Continental Resources Cuts Two-Thirds of Cap-Ex Budget

Article excerpt

OKLAHOMA CITY - Continental Resources Inc. will cut its 2016 capital expenditures budget by 66 percent compared to last year's $2.7 billion, the company announced Tuesday. The reduction was driven by the company's aim to not add new debt, CEO Harold Hamm wrote in a prepared statement.

The driller can maintain a cash flow-neutral budget this year if the West Texas Intermediate crude price averages $37 per barrel for the full year, according to the company's Tuesday press release. If WTI prices average $40 per barrel for the year, the company estimates it could earn an additional $100 million in revenue.

WTI closed Tuesday at $31.45 per barrel, up 3.7 percent from the previous day's close of $30.34. Continental can reduce spending further if commodity prices deteriorate, according to the release. …

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