MIDLAND, Texas, May 06, 2020 -- Rattler Midstream LP (NASDAQ: RTLR) (“Rattler” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today.

As of May 15, 2020, Energen had $400 million aggregate principal amount of the notes outstanding. The tender offer is being made pursuant to an offer to purchase and a related letter of transmittal, each dated as of May 18, 2020, and a notice of guaranteed delivery.

Oil & Gas US E&P; Industry Rebounding Off Coronavirus Lows

(Bloomberg) -- On the same day OPEC-style oil quotas in Texas were pronounced dead on arrival, shale drillers disclosed more supply cuts in response to the crude market collapse.Diamondback Energy Inc., Parsley Energy Inc. and Centennial Resource Development Inc. on Monday became the latest Permian Basin shale explorers to say they were curbing output. A pandemic-fueled crash in oil prices has been so severe that producers have moved beyond laying down drilling rigs to shutting in existing output.Midland, Texas-based Diamondback is dialing back 10%-15% of its May production, the company said in an earnings statement after the market closed. Parsley said it’s suspending all drilling and fracking work and is curtailing up to 23,000 barrels a day of production this month.Centennial, which started as a blank-check company backed by private equity firm Riverstone Holdings LLC, is shutting in up to 40% of output this month while also suspending all drilling and fracking activities and cutting its workforce. Its shares plunged as much as 47% to 55 cents in after-hours trading.The decision to curtail output comes as Texas decides against state-mandated quotas, which companies including Diamondback had been ardently opposed to. Earlier on Monday, the Texas Railroad commissioner who had been most in favor of such cuts said that plan was “dead.”Diamondback Chief Executive Officer Travis Stice called the proposal a “distraction” in the company’s statement. “Diamondback is choosing to curtail production in May because of economics, which should be the baseline for decisions on whether or not to produce barrels,” he said.Exxon Mobil Corp., Chevron Corp. and ConocoPhillips plan to curb as much as 660,000 barrels a day of combined American output by the end of June. Permian Basin producer Concho Resources Inc. has shut in about 4% to 5% of total output and warned last week that it will likely be forced to curtail even more.As of April 24, American producers had already cut 1 million barrels a day of output, down from a record 13.1 million at the end of February, according to the latest weekly data from the Energy Information Administration.Diamondback, which also suspended its buyback program, said it’s currently running 14 rigs but would reduce the number to eight by the start of the third quarter. The company will average “less than one” fracking crew in this quarter, according to the statement.Centennial said in a separate federal filing that if the shut-ins are prolonged, the productivity of the wells could be materially hurt when it goes to turn them back on. The company might not be able to renew some leases, reducing its reserves.All three companies also booked non-cash impairment charges over the first quarter, which they attributed to a drop in commodity prices. Diamondback wrote down about $1 billion in the value of oil and gas properties, Parsley recognized a $4.4 billion charge and Centennial disclosed a $611.3 million impairment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Moody's Investors Service, ("Moody's") assigned a Ba1 rating to Diamondback Energy, Inc.'s (Diamondback) proposed $500 million senior unsecured notes due 2025. Diamondback's other ratings, including its Ba1 Corporate Family Rating (CFR), and stable outlook were unchanged. Diamondback's senior unsecured notes are rated Ba1, the same as Ba1 CFR, given the company's unsecured capital structure, including its $2 billion committed revolving credit facility, which ranks pari passu with the unsecured notes.

(Bloomberg) -- Shale drillers are signaling they’ll throw off restraints on oil production if crude reaches $30 a barrel, an ominous portent for a global industry still drowning in a supply glut.The about-face is stunning for a sector scorched by the once-unthinkable twin disasters of a worldwide pandemic that slashed demand and negative crude prices. The historic market collapse prompted production shut-ins globally, but the retrenchment has been particularly acute in the U.S. as storage tanks approach full capacity and refiners scale back oil processing.For OPEC, Russia and other international producers, the implications are dire. It took years of painful output caps to tame a pernicious oversupply that gutted crude prices, starving national budgets of sorely needed cash all the while. Just as the uptrend gained momentum, Covid-19 strangled the world’s biggest economies, paralyzing energy demand and erasing all price gains.“Shale producers are nimble -- they can add rigs quickly and bring a well online in three months or less when the time is right,” said Bernadette Johnson, vice president of strategic analytics at Enverus, a data and research firm. “There will still be more painful announcements, but we are seeing the bottom.”Diamondback Energy Inc., one of the most prominent shale specialists in the Permian Basin, sees a crude price in the high $20s-a-barrel or low $30s as a trigger to revive curtailed output and consider reactivating idled frackers. Right now, the explorer is in the process of halting as much as 15% of supplies and sending home almost all its fracking crews.Parsley Energy Inc., which has idled one-fourth of its production and suspended all drilling and fracking, cited $30 as the critical price point. Centennial Resource Development Inc. hinted that $24 or $25 may be enough to prompt the driller to reverse at least some of its 40% output cut, though Chief Executive Officer Sean Smith declined to provide a specific trigger price.“There’s a lot of factors that weigh into that, but you’ve got to have prices in the high-20s or low-30s before we kind of signal going back to work in an aggressive or even in a non-aggressive way,” Diamondback CEO Travis Stice said during a conference call with analysts Tuesday. “As we evolve as an industry into this new world order, I think it’s going to look a lot different than what we’ve historically been accustomed to.”New GushersIt’s not just so-called independent drillers that are prepared to discard production restraints when prices strengthen. Exxon Mobil Corp.’s strategy for curtailing supply while prices are low has been to turn off its newest, most prolific shale wells -- precisely so that crude can be reserved in the ground and unleashed as soon as markets recover. Unlike its rivals, though, the supermajor hasn’t disclosed any of its internal price levers.Across the U.S. and Canada, explorers are expected to turn off 3.5 million to 4.5 million barrels of daily crude output this month, including about 1 million in the Permian region, according to pipeline giant Plains All American Pipeline LP.The curtailments have been so steep and swift that they derailed a movement in Texas to impose output limits for the first time in half a century. The proposal, which would have penalized drillers $1,000 a barrel for exceeding quotas, was abandoned by the Texas Railroad Commission on Tuesday, in part because so many wells already have been shut in.Benchmark U.S. crude futures soared 56% in the past week and were hovering just below $24 a barrel at 10:22 a.m. on the New York Mercantile Exchange on Wednesday. Less than three weeks ago, the price dipped to minus $40.32 and even now remain more than 60% below the 2020 peak of $65.65 touched in early January.Market Disruptor“Prices have been below break-even for so long that it only made sense to stop drilling and shut in active wells,” said Christiane Baumeister, an associate professor of economics who specializes in the shale industry at the University of Notre Dame. “Those were the first logical steps to cutting production.”The shale sector is in a unique position to upset global supply and demand because the nature of the geology allows wells to be turned off and on in very short order. Whereas an old-style, conventional well can require months of careful handling and manipulation to bring back into service, shale wells in places like West Texas and North Dakota can be back online in as little as a week.Parsley, which stood out among shale peers for being one of the few publicly traded explorers to support the ill-fated Texas quotas, said it would need one to two weeks to return wells to previous output levels.“This is a choice,” CEO Matt Gallagher said during a conference call. “Currently the world does not need more of our product.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

As of the Expiration Time, $208,687,000 aggregate principal amount of the Notes (52.17%) were validly tendered, which excludes $385,000 aggregate principal amount of the Notes that remain subject to guaranteed delivery procedures. Energen expects to accept for payment all Notes validly tendered and not validly withdrawn in the tender offer and expects to make payment for the Notes on May 26, 2020.

Today we'll take a closer look at Diamondback Energy, Inc. (NASDAQ:FANG) from a dividend investor's perspective...

Diamondback intends to use the net proceeds from the offering (i) to make an equity contribution to Energen Corporation, Diamondback’s wholly-owned subsidiary (“Energen”), which Energen plans to use to purchase its 4.625% Senior Notes due 2021 (the “4.625% Energen Notes”) that are tendered pursuant to a tender offer by Energen for all of the outstanding 4.625% Energen Notes (the “Tender Offer”) and to pay the premium therefor and accrued and unpaid interest thereon and to pay fees and expenses of the Tender Offer, (ii) to repay a portion of the outstanding borrowings under the revolving credit facility of Diamondback O&G LLC, Diamondback’s wholly-owned subsidiary, and (iii) for general corporate purposes. The offering is expected to close on May 26, 2020, subject to customary closing conditions.

(Bloomberg Opinion) -- Almost a month after its plunge into minus-land, oil is on a tear. Or not. It depends which oil price you’re watching. The front-month Nymex oil future — for June, currently — has surged by more than 50% so far this month and now trades close to $30 a barrel. Peer further out, though, and the landscape looks a lot flatter.The rally in the June contract (along with swaps for the balance of the year) owes much to relativism: Once you’ve seen negative prices, how much worse can it get? But it also reflects real signs of recovery in oil demand as Covid-19 lockdowns begin to ease and cuts to supply accelerate.As you might expect, exploration and production stocks have hitched a ride. The frackers haven’t matched the best-performing sector in the S&P 1500 Supercomposite over the past month: Home Furnishing Retail (which, let’s face it, makes a ton of sense). But they are in the top five. That's where those long-dated oil prices become relevant.Some E&P companies, such as Permian player Diamondback Energy Inc., have talked of pumping again once oil gets back above $30 a barrel. We’re nearly there already. Yet the lack of enthusiasm in the far end of the futures curve reads like a big Stop sign.Futures prices aren’t forecasts of where oil will trade; they’re just how producers (and some users) of oil hedge their price exposure while speculators bet on where it’s going. And while optimism on recovery has taken hold in near-dated oil — which is where speculative money has tended to congregate — there are plenty of reasons for caution further out. These range from the dreaded “second wave” of Covid-19 to more mundane considerations. Two of the latter concern the glut of oil inventory that is still growing and the less-tangible glut of spare capacity that is also growing as companies and countries curb oil output.Consider the latest International Energy Agency forecasts, released earlier this week. These added to the market’s optimism as the IEA revised its forecast for the drop in oil demand this year from an unprecedented 9.3 million barrels a day to a still-unprecedented 8.6 million. Even so, the IEA’s numbers imply almost 1.7 billion excess barrels having flowed into storage by the end of June, of which just over 1 billion will flow back out by year-end. To give a sense of what the remaining 630 million barrels sloshing around means, it would be enough to replace OPEC-member Nigeria’s output for an entire year.And bear in mind two things about that forecast: First, it assumes demand strengthens consistently through the rest of 2020. Second, it relies on supply continuing to drop year-over-year into the fourth quarter.In other words, a lot has to go right in a year where, thus far, a lot has gone wrong. And that’s just to limit the glut of inventory.This is what those subdued futures beyond 2020 are telling us. Even if a second wave of Covid-19 is avoided, the lingering economic damage and build-up in oil inventory will still signal fewer, rather than more, new barrels are required. The curve itself enforces this. Most frackers rely on hedging to finance their drilling programs, but it’s hard to ramp up when you can only lock in prices that start with a three.As it is, the scars of April’s plunge may limit the speculative flows that take the other side of hedging trades, making them costlier (see this). Moreover, for the glut of inventories to drain, the curve must flip from sloping upward — today’s “contango,” to use the industry term — to sloping downward. “Backwardation,” whereby future prices slope down from today’s, makes it uneconomic to store barrels, and that’s when tanks drain.So if, as the IEA expects, the glut is due to begin shrinking this summer, then near-term futures must rally further relative to long-dated oil. In the past five years, that has only tended to happen when near-dated oil has been priced around $55-60 a barrel, according to a report from BofA Securities published Friday. Before you start dreaming of oil doubling by July, think about the wider environment and those flat 2021 prices. As BofA’s analysts write, it’s more likely that any flip to backwardation this year will happen at a lower level.That still implies oil getting into the $40s soon. But for frackers, it also implies resisting that siren song, weak as it sounds compared to pre-Covid times. Don’t forget this all coincided with a breakdown of cooperation between Saudi Arabia and Russia. While they are cutting now to prop up prices, they aren’t likely to tolerate the sight of U.S. producers getting back to work (they tried that already in recent years). While they await recovery in demand, their spare capacity should suppress long-dated futures, thereby allowing the inventory glut to start draining at a level where many frackers can’t justifiably hedge. Getting back to work in the Permian would kill the rally supposedly encouraging that. The message from the curve to America’s oil producers is this: Enjoy the rally, but retrenchment and restructuring remain unavoidable.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Diamondback's (FANG) capex for Q1 adds up to $790 million. The company coughs up $672 million on drilling and completion activity and spends another $18 million on non-operated properties.

Q1 2020 Diamondback Energy Inc Earnings Call

Missed the slew of shale oil earnings? Here's a quick run-through of how some of the bigwigs fared in their first-quarter earnings reports.

(Bloomberg Opinion) -- Amid a historic oil crash, frackers are ditching rigs at a rapid pace. The number of operating horizontal rigs stood at 338 on Friday. That’s down more than half since February, though still above the trough in early 2016. So, churlish as it may seem, it must be asked: Why is anyone still drilling shale right now?Speaking on an earnings call a month after petitioning the Texas Railroad Commission to impose supply cuts, Matt Gallagher, CEO of Parsley Energy Inc., summed up the situation facing frackers:Currently, the world does not need more of our product, and we only get one chance to produce this precious resource for our stakeholders.The commission didn’t organize shut-ins of wells. So Parsley, taking its cue from prices instead, is just shutting in some of its own anyway. It has also suspended drilling and completing new wells.The economics of each well — and the companies that own them — differ enormously. But grab an envelope and imagine a well tapping one million barrels of oil equivalent, 75% of it crude oil, the rest natural gas. Benchmark prices: $30 oil and $2.50 gas, translating to, say, $27 and $2 at the wellhead. That implies total revenue from those resources of $23.3 million. Royalties and severance taxes take about $7 million of that; operating expenses and overhead take another $7 million(1). That leaves $9.3 million versus the $9 million spent drilling and completing the well upfront. Factor in time value of money, and that well is seriously underwater.Besides the back-of-crumpled-envelope quality of that calculation, there are other reasons a producer might keep drilling anyway. Rigs are often contracted for months at a time; for example, Helmerich & Payne Inc., a leading provider, reported roughly a third of its U.S. onshore rig fleet operated under fixed-term contracts at the end of March. Contracted pipeline space, too, must be paid for whether or not barrels flow through it. Taking a company’s activity down to zero is also traumatic for workers and, like a shut-in well, makes it harder to eventually crank back up. Hedges, meanwhile, shield against low spot prices and represent oil and gas contracted for delivery.Then again, hedges could be settled for cash; it’s not like anyone is screaming for more of the actual stuff these days. Rig and pipeline contracts can also be renegotiated (an order from the Texas Railroad Commission could have helped on that front, but still). And the difficulty of going into hibernation must be set against the implacable demands of low oil prices.On that note, another rationale for continuing to drill is an expectation of oil and gas prices recovering reasonably soon. Parsley and some other shale operators, such as Diamondback Energy Inc. (which is reducing but not suspending drilling), have indicated they could increase activity again if oil gets back above $30 a barrel (it was trading around $25 Monday morning). Because shale output is very front-loaded, movements in near-term prices matter a lot. For instance, using my basic example above, while the economics don’t work at flat $30 oil, assuming oil rises to $40 in year two and then $50 from year three would generate a low positive return. Those prices actually lag the consensus forecast, which averages $46 for 2021.On the other hand, that consensus stood at $58 only two months ago, so it’s fair to say expectations can change in the middle of an unprecedented oil shock. The current list of unknowns encompasses how quickly people resume something like normality even after lockdowns ease; whether Covid-19 inflicts a second wave; how long the glut of oil inventory building now lasts; and how quickly Saudi Arabia and Russia resume a market-share strategy.The rational thing to do is to wait for higher prices — indeed, conserving barrels, rather than pushing them into a glutted market, is a prerequisite for those higher prices. As EOG Resources Inc. said Friday, oil kept underground is “low-cost storage.”E&P companies carrying more debt (and there are more than a few) may be stuck on the treadmill. Covenants demand cash flow today even if that means destroying value over time. But this is a reminder of why the industry finds itself vulnerable in the first place: managing to production rather than value, and thereby dragging down prices by putting more sub-economic oil onto the market. The Saudi-Russian spat in early March was a warning the market won’t just absorb that from here on. Breaking the existing shale model, and redirecting cash away from wells toward creditors and shareholders, must be one outcome from all this.On that front, it’s worth noting the E&P sector now offers a higher dividend yield than the broader market for only the second time this decade.E&P stocks traded at a premium on yield because they weren’t valued on yield. Unlike the majors and refiners, frackers were owned for growth and a bet on oil prices. That rationale was fraying even before Covid-19, but is especially out of favor now. The yield spread to the market needs to widen, not just to compete against both other oil stocks and other sectors. It would also be a tangible sign of fewer dollars heading into drilling. Like Gallagher said, the world doesn’t need any more of the industry’s “product” right now. That includes investors.(1) Assumes royalties of 25% and severance taxes of 4.6% for oil and 7.5% for natural gas. G&A expenses of $2 per barrel of oil equivalent and $5 of other operating expenses.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Shares of hard-hit oil and gas exploration and production companies (E&Ps) Callon Petroleum (NYSE: CPE), Diamondback Energy (NASDAQ: FANG), and EOG Resources (NYSE: EOG) soared in April, according to data provided by S&P Global Market Intelligence. EOG's shares were up 32.3%, Diamondback's shares jumped 66.2%, and Callon's shares rocketed up 71.5% during the month. Year to date, EOG shares are down 38.3%, Diamondback's shares are down 54.4%, and Callon's stock has fallen a jaw-dropping 83.3%.

The herd trade has seized oil as hedge funds pile into the market to try and gain from its upside momentum, even without a fresh driver for prices. A day after rallying 5% on positive crude stockpiles data that was offset by a surprise rise in gasoline inventories, U.S. crude’s West Texas Intermediate benchmark was up again, this time without a new catalyst. Brent, the London-traded global benchmark for oil, rose 16 cents, or 0.5%, at $35.91.

Image source: The Motley Fool. Diamondback Energy Inc (NASDAQ: FANG)Q1 2020 Earnings CallMay 5, 2020, 10:00 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorGood day, ladies and gentlemen, and welcome to the Diamondback Energy First Quarter 2020 Earnings Conference Call.

(Bloomberg) -- A pair of prominent shale producers said all they need is oil around $30 a barrel to consider bringing back curtailed crude output and fracking new wells.Diamondback Energy Inc. is curbing production this month by 10% to 15% and sending home most of its fracking crews for the whole quarter. The Midland, Texas-based company expects to end this year with more than 150 wells that were drilled but never fracked as U.S. producers avoid pumping oil into a vastly oversupplied market. Parsley Energy Inc., meanwhile, has curtailed a quarter of its output and temporarily abandoned its five-rig, two-frack crew program.The historic rout in crude prices amid the Covid-19 pandemic has spurred an unprecedented retreat from shale exploration. Producers from Chevron Corp. and Exxon Mobil Corp. to mom-and-pop drillers are curbing output as the world runs out of places to store additional oil supply.Benchmark U.S. crude futures rose 20% to $24.34 a barrel at 1:20 p.m. on the New York Mercantile Exchange, little more than two weeks before a precipitous collapse into negative territory. Still, they remain more than 60% below the 2020 peak of $65.65 touched in early January. When asked what oil price Diamondback needs before it turns the spigot back on, Chief Executive Officer Travis Stice said the company’s first priority would be restarting production that was choked back. Then, Diamondback would consider bringing back frack crews to tap supplies from wells that were drilled but never completed.“There’s a lot of factors that weigh into that, but you’ve got to have prices in the high-20s or low-30s before we kind of signal going back to work in an aggressive or even in a non-aggressive way,” Stice said on a call Tuesday. “As we evolve as an industry into this new world order, I think it’s going to look a lot different than what we’ve historically been accustomed to.”Parsley said it would need one to two weeks to turn its wells back on to their previous level of output. The company cited roughly $30 a barrel as the base case for running four to five drilling rigs and one to two frack crews, according to its earnings presentation. The Austin, Texas-based driller is waiting for the volatility of oil supply and demand to die down, executives told analysts and investors Tuesday on a conference call.“This is a choice,” CEO Matt Gallagher said. “Currently the world does not need more of our product.”At most, Parsley said it would maintain the roughly 25% curtailment level for June, if it has to.Shale wells peak early and decline so quickly that new ones are constantly needed to maintain output. Stice declined to say what price the company would need to actually grow output on a quarter-by-quarter basis.“If you look at some of the prices that we got in 2019, that certainly is a signal that you can get more aggressive on the growth,” he said. “But I think we’ve got to be pretty careful on being too prescriptive on what exact price signals are going to look like before you get back to growing again.”(Adds details on Parsley starting in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

The oil company believes it can start fracking wells again once oil rebounds to around $30 a barrel.

(Bloomberg) -- U.S. shale drillers spooked by the epic meltdown in oil markets are trying to figure out how to protect themselves in the future. It won’t come easy, or cheap.After oil’s crash below zero, explorers face hefty premiums for the financial instruments they rely upon to insure against price swings. Meanwhile, they’re also unwilling to lock in future supply with forward prices for crude remaining lackluster.“Producers are stuck between a rock and a hard place right now,” said Michael Tran, managing director of global energy strategy at RBC Capital Markets. “There has been a dearth of opportunities to hedge for 2021, and this is traditionally the time period when you lean into next year’s hedging at more robust levels.”This year about half of U.S. producers tracked by BloombergNEF have their production hedged for 2021, according to first quarter company filings. In the first quarter of 2019, about 60% of producers hedged their output for the year ahead.Even though U.S. oil prices for June have rallied some 75% this month, the West Texas Intermediate swap for 2021 has only edged 10% higher. That means the recent rally has been concentrated in the most active part of the oil curve.Producers UnsureThe muted activity is likely a sign that producers are unsure what to do given that prices have rallied since turning negative but not enough to keep pumping barrels profitable. Producers outside of North America are also running into the same problems, and have barely been active since oil’s rout, traders said.While producer hedging can be systematic in order to satisfy requirements from banks, a lot is also based on current price levels for different contracts. West Texas Intermediate for 2021 was selling for about $36 a barrel on Monday versus $54 at the start of the year.There are growing reasons for producers to be optimistic too. Inventory levels are starting to draw, economies are restarting and producers have cut capital spending plans and production. Despite this, a smattering of producers -- particularly in the Permian Basin -- are hedging into 2021, even with signs of higher prices and a stronger market“Clearly some companies are still willing to hedge in the $30-range, meaning they think there is a chance it could fall under that,” said Daniel Adkins, an analyst at BNEF.That might also include companies tight on cash flow or with heavy debt on the books. Case in point: Diamondback Energy Inc has $400 million worth of debt maturing next September. The company intends to use hedge protection as one way to maximize liquidity, retain cash and pay down debt, executives said during an earnings call.There are other aspects to lower hedging levels as well.Explorer CutsExplorers have been slashing spending and lowering their production outlooks in the wake of the coronavirus pandemic. In some cases, they might decide to limit how fast they resume production and drilling if crude prices end up exceeding the rate they hedged at.Executives at Parsley Energy Inc, one of the more protected producers for 2021, told analysts on a May 5 conference call that there could possibly be a future cap on activity.“These aren’t the levels where firms want to hedge right now because they can’t generate the kind of margin people need,” said John Saucer, vice president of research and analysis at Mobius Risk Group. “You need to see materially higher prices to turn the tide on this slashing of capital expenditures.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.