Lafayette-based Stone Energy Corp. will slash its capital spending in 2015 to $450 million, a little more than half of the $875 million the company spent a year ago on items including drilling, exploration and lease acquisition.
Chairman, President and Chief Executive Officer David Welch said the spending cuts were part of the steps the company has taken to adjust to the collapse of oil prices.
Other steps include reducing operating costs and overhead and simplifying the organization.
The cuts were part of an update Stone released on its operations.
Stone plans to spend $337.5 million, or 75 percent of the capital budget, in the Deep Water/Gulf Coast and expects to increase production there. Stone will focus on development and exploration drilling, facility installations for development, well completions, seismic and lease acquisition. The company will use 13 percent of the capital budget to cover the costs of abandoning wells. The company will also allocate 8 percent of the budget to its operations in Appalachia and 4 percent to business development.
The company ended 2014 with estimated proved reserves -- the oil and gas Stone Energy expects to produce from its properties -- equivalent to 152 million barrels of oil, up 5.5 percent from 2013. The company’s daily production in 2014 was the equivalent of 42,500 barrels of oil per day on average.
Stone expects 2015 production to range from the equivalent of 39,000 to 43,000 barrels of oil per day.