(Bloomberg) — Texas shale-oil firm Matador Sources Co. plans to drop certainly one of its 9 drilling rigs by the center of the yr in response to plunging crude costs.
The transfer will slice $100 million from Matador’s deliberate capital expenditures for the yr, in response to an announcement Wednesday. Matador is the primary vital shale firm to announce it’s reducing again on drilling since crude futures started nosediving earlier this month.
“Matador expects to proceed to observe market situations and has the flexibleness so as to add again the ninth drilling rig or drop further drilling rigs in 2025 relying on market volatility and the macroeconomic setting,” the corporate stated within the assertion.
Oil costs have declined greater than 13% in three weeks since US President Donald Trump launched his commerce conflict and OPEC and its allies introduced plans to beef up a manufacturing enhance deliberate for later this yr.
West Texas Intermediate settled nearly $62 a barrel on Wednesday, beneath the $65 threshold that many shale firms want to interrupt even on a brand new nicely.
Shares of Matador, which reported first-quarter outcomes Wednesday that beat analysts’ expectations, rose as a lot as 4% after the shut of standard buying and selling in New York.