CHRON: Plains All American cuts third of budget as pipeline operators feel market pressure

Published: Apr. 7, 2020 at 1:34 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

Houston-based Plains All American Pipeline has cut one-third of the company's capital expenditure budget as the oil and gas industry continues to feel the pressure of historically low prices and falling demand during the coronavirus pandemic.

Plains cut $750 million from its capital budget and also is cutting distributions to stockholders by $525 million for nearly $1.3 billion in savings.

The pipeline operator now plans to spend $1.55 billion on new projects but may be able to save another $600 million on the Red Oak Pipeline, a joint venture with Phillips 66 that has been suspended.