Wintershall Dea joins the capex cutters

The independent producer is the latest to announce reduced spending in the new price and demand environment

German E&P and midstream firm Wintershall Dea will cut its planned 2020 development capex by 10pc from initial expectations as it joins the club of upstream operators focusing on trying to lower costs. But its measures may not be enough to deliver free cash flow (FCF).  The company plans to spend €1.2-1.5bn ($1.3-1.7bn) on development capex in 2020. This is down from expectations but comparable to 2019 expenditure should spend come in at the very top of the range. Wintershall Dea’s exploration budget will, though, see a significant year-on-year reduction, down to €150-250mn in 2020 compared with €340mn last year.  But, despite trumpeting its low production costs—$4.70/bl oe in 2019 compa