Husky Energy makes further cuts to 2020 capital spending

Canadian oil and gas producer Husky Energy on Monday cut its 2020 capital expenditure by an additional C$700 million ($496.31 million), citing a hit to oil prices from the coronavirus outbreak.

The Calgary, Alberta-based company said it now expects to spend between C$1.6 billion and C$1.8 billion, about half its earlier estimate of C$3.2 billion to C$3.4 billion.

Husky Energy also said it would also reduce production by more than 80,000 barrels per day, most of which is heavy oil.

Oil and gas producers have been slashing spending, trimming output and rolling back share buybacks and dividends as oil demand slumped due to the coronavirus outbreak that has hampered travel.

Husky had previously cut its 2020 capital spending budget by C$900 million in March, citing challenging global market conditions.

Smaller-rival Crescent Point Energy Corp also slashed its capital expenditure forecast for 2020 by another C$75 million, or 10%, to a range of C$650 million to C$700 million. Earlier in March, Crescent had lowered its estimates by 35%.