Breitburn Energy Partners (NASDAQ:BBEP), an investor in America’s onshore oil industry, told investors it would be cutting 2016 capex by 60%, down to $80mln, due to the continued weakness in crude prices.
Chief Executive Halbert Washburn, however, said he expected production volumes would only drop by around 9% over the year despite the cutbacks.
He highlighted, in a stock market statement, that the company’s portfolio comprised “quality, long-lived, low-decline” assets.
Results for the twelve months, to December 31 2015, reveals total production of 20.2mln barrels of oil, up from 14.1mln in 2014, as a result of a merger with QR Energy.
“We were very proactive last year in adapting to a volatile commodity price environment,” Washburn added.
“We had strong operating and financial results, with production coming in at the high end of our guidance and our capital, operating, and G&A costs performing in line with or better than our guidance.”
Breitburn reported earnings (adjusted EBITDA) of $636.8mln, up from $473.8mln in the prior year.
But, a $2.4bn non-cash write off meant the company made a $2.6bn net loss for 2015.