Three of the largest drilling rig operators in Texas are making budget cuts and bracing for the worst as a global glut of crude oil and falling demand due to the coronavirus pandemic are expected to cause the U.S. rig count to plummet.
Although exact figures have yet to be released, Helmerich & Payne, the top drilling rig operator in Texas, has pledged to cut its capital spending budget on top of already existing plans to cut operating costs by $200 million.
Nabors Industries, the second most-active drilling rig operator in Texas, is cutting $75 million dollars from its capital spending budget, suspending dividends to stockholders, cutting salaries for its CEO and chief financial officer by 20 percent and cutting salaries of all employees who make more than $100,000 by 10 percent.
“The announced reactions from operators have been swift and substantial, and the market conditions we face are sure to be difficult,” Nabors Industries CEO Anthony Petrello said.
“We are acting quickly and decisively. We remain committed to improving the company’s capital structure this year even under the expected market conditions, and we are confident these announced measures will support that goal.”
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.