Concho Resources cuts 2020 capital program 25%

Concho Resources Inc., Midland, has reduced its 2020 capital program in response to low oil and natural gas prices to $2 billion—a 25% cut from prior capital spending expectations of $2.6-2.8 billion.

In February, the company said 2020 activity was expected to result in 300 to 320 gross operated well completions with an average lateral length of 10,000 ft. Oil production volumes were expected to increase 10-12% year over year (pro forma for the $925-million sale of its New Mexico Shelf assets) (OGJ Online, Sept. 3, 2019). First-quarter 2020 production previously was expected to be 316,000-325,000 boe/d (202,000-208,000 b/d of oil).

The company plans to provide a detailed update to its operational and financial outlook in its first-quarter 2020 earnings materials.