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MarketWatch is reporting:
Oasis Petroleum stock OAS, sank 11% in early trade Wednesday, after the company announced preliminary 2015 capex plans, showing it will sharply reduce spending as oil prices continue to fall.
The company pegged capex at $750 million to $850 million for the year. That compares with the $1.425 billion set aside in 2014, according to analysts at Topeka Capital Markets. The company is planning to invest $650 million to $750 million in drilling and completion activity for annual production growth of 5% to 10%.
It will move to a six rig development program by end March and will focus activities in the Indian Hills.
"In addition to prudently managing our development program, we also have a strong hedge position in 2015 with over 53% of 2015 oil volumes hedged with an average floor of $89.13,"
Chief Executive Thomas Nusz said in a statement. Shares have fallen 76% in the year so far, while the S&P 500 has gained 12%.
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