Wintershall Dea has maintained a stable production of 626,000 barrels of oil per day (bbl/d) in Q1 2020 despite challenging markets, according to a press release.
The company’s implementation of strategy remains on track with three exploration successes offshore Mexico and Norway. Furthermore, the company has posted a strong free cash flow generation of EUR 137 million and an increased liquidity of over EUR 2.4 billion.
However, in the face of the challenging environment the company has taken decisive measures. Wintershall Dea has cut capital expenditure (Capex) by 30% for 2020 to EUR 1.0-1.2 billion and its exploration budget by 20% to EUR 150-250 million. Furthermore, it has cut operational expenditure (Opex) by 10%.
Mario Mehren, Wintershall Dea Chairman & CEO, said, “Looking at the first quarter 2020, the situation in the oil and gas markets has become even more challenging. However, we are in a good position to weather the storm given our low-cost, gas heavy portfolio, stable cash flows from our midstream business and a healthy balance sheet.”
Wintershall Dea is Europe’s leading independent natural gas and oil company and produces gas and oil in 13 countries worldwide.