Cenovus Energy Inc. is further reducing its 2015 capital spending in order to preserve cash and maintain the strength of its balance sheet. The company has identified approximately $700 million in additional capital expenditures originally planned for 2015 that can be deferred until crude oil prices recover.
"We have great assets, we're in a strong financial position and we have the flexibility in our capital plan to make these additional spending reductions without compromising strategic growth projects," said Brian Ferguson, Cenovus President & Chief Executive Officer. "Our plan is to continue to pursue our long-term growth strategy, but at a pace we believe is more in line with the current pricing environment."
In December 2014, Cenovus announced a 2015 capital spending budget of between $2.5 billion and $2.7 billion, an approximate 15% reduction from 2014 levels. Since December, crude oil prices have continued to weaken and the company is anticipating prices may remain low through 2015.