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Paramount Resources slashes capital spending plan due to drop in energy prices

Companies across the oilpatch are slashing capital spending plans as oil prices crash due to the economic slowdown due to COVID-19 and a flood of new oil coming from Saudi Arabia.
Companies across the oilpatch are slashing capital spending plans as oil prices crash due to the economic slowdown due to COVID-19 and a flood of new oil coming from Saudi Arabia. THE CANADIAN PRESS/Jeff McIntosh

Paramount Resources Ltd. is cutting its capital spending plan in the face of a significant drop in global energy prices.

The company expects capital spending this year to come in between $185 million and $250 million.

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The new forecast compared with earlier guidance for between $350 million and $450 million this year.

Companies across the oilpatch are slashing capital spending plans as oil prices crash due to the economic slowdown due to COVID-19 and a flood of new oil coming from Saudi Arabia.

READ MORE: Paramount Resources CEO backs calls for production cuts to support oil prices

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Paramount says the revised capital plan remains focused on the company’s liquids-rich Montney assets in the Grande Prairie region.

Average sales volumes for 2020 under the new capital guidance are expected to range between 70,000 barrels of oil equivalent per day and 75,000, down from earlier guidance for between 75,000 and 80,000.