Large-Cap Oil Producers' Spending, Cash Flow In Line By FY16

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Large-cap oil producers will bring spending to within cash flow levels by 2016, according to an analysts' report Wednesday. A raft of major producers made presentations at a UBS-sponsored conference Tuesday as crude oil prices bounced up from recent lows. UBS' William A. Featherstone's top picks among presenters: Anadarko Petroleum Corp.
APC
, Pioneer Natural Resources
PXD
and Newfield Exploration Co.
NFX
. News generated from the conference included Newfield's prediction that it can cut well costs in its so-called STACK play near Oklahoma City by another 12 percent to about $7.5 million as it moves closer to development there next year. Featherstone said the prediction would add about 6 percent to his current estimate of the play's value of $14.50 a share. Chesapeake Energy Corp.
CHK
said it plans to begin tests in its Meramec play, also in the Oklahoma region, starting in the fourth quarter. Industry results from Meramec "have been encouraging" to date, according to Featherstone. Devon Energy Corp.
DVN
implied that its capital expenditures next year will be about $4 billion, or about 20 percent below the Wall Street consensus. The company "still expects to generate attractive growth," given maintenance capital spending of about $2.25 billion, Featherstone said. Whiting Petroleum Corp.
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WLL
expects to soon disclose promising early results from tests in three of its fields, the Sanish, Polar & Missouri Breaks. Further, Apache Corp.
APA
said any potential increase in its activity during the second half of 2015 will be in the South Midland operations, international assets or in strategic acreage.
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