Comment on Oil, gas industry’s woes move Extraction to cut capital spending, budget

Extraction Oil and Gas joins a growing number of companies that are cutting their spending due to low prices because of the coronavirus pandemic and a clash between Russia and Saudi Arabia over production levels. Denver-based Extraction, which primarily operates along the Front Range north of Denver, said Thursday that it has cut its 2020 budget for exploration and production by 42% to a range of $250 million to $300 million. Extraction has also reduced its 2020 general and administrative cash budget by 18% to a range of $40 million to $50 million, the company said in a statement. “All officers of Extraction, including the executive team, have elected to take a 10% reduction in 2020 salaries and bonus compensation effective immediately,” said Extraction CEO Matt Owens. The company will continue to monitor oil prices and the economy and might further adjust its activity levels, Owens added. In February, a reorganization of Extraction’s workforce included the elimination of about 20% of its statewide positions, spokesman Brian Cain said in an email. The company’s stock price closed at 40 cents per share Thursday.