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Seven Generations and MEG Energy cut capital spending plans for 2020

FILE PHOTO: An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21, 2014. REUTERS/Todd Korol/File Photo

A pair of big names in Canada’s oilpatch is cutting their capital spending plans in the wake of the sharp plunge in oil prices.

Seven Generations Energy Ltd. is lowering its 2020 capital investment budget by $200 million or 18 per cent to $900 million.

READ MORE: Deal with Alberta gas producer is Quebec utility’s first under certification program

It says the reduction reflects a temporary deferral of planned activity that will allow it to high-grade drilling locations and improve efficiencies.

Seven Generations’s production for 2020 is expected to average between 185,000 and 190,000 barrels of oil equivalent per day, down from earlier guidance for between 200,000 and 205,000.

READ MORE: MEG Energy reports $26M fourth-quarter profit

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Meanwhile, MEG Energy Corp. is cutting its 2020 capital spending plan to $200 million from the $250 million in announced in November 2019.

MEG also revised its full year 2020 production guidance range to between 93,000 and 95,000 barrels per day compared with its earlier guidance for between 94,000 and 97,000 barrels per day.

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