HOUSTON (AP) — Swift Energy plans to slash its spending by as much as 75 percent in the new year as it becomes the latest energy company to adjust to tumbling prices for its product.
The Houston company announced on Tuesday a revised capital budget ranging from $100 million to $125 million that it said reflected recent hydrocarbon price declines.
"We continue to work with our vendors and suppliers to reduce service costs and are taking steps to materially reduce field level operating and corporate overhead expenses," CEO Terry Swift said in a statement from the company.
Swift Energy Co. is an independent oil and natural gas company with operations mainly in Texas and Louisiana.
Oil companies have been cutting spending almost across the board as prices for natural gas slide and benchmark crude rates reach multi-year lows.
American Eagle Energy Corp. recently said it was suspending its 2015 drilling budget and wasn't going to resume drilling until crude oil prices rebound. Linn Energy also said it was cutting its capital expenditures in half for the year.
Civeo Corp., which provides housing and other services to drillers, also suspended its dividend and surprised Wall Street late last year with a particularly dismal outlook for 2015.
Shares of Swift Energy dropped 41 cents, or 15.2 percent, to $2.28 in midday trading Tuesday. They are down about 82 percent in the past year.
