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Penn Virginia cuts 2009 capital budget, production

The Associated Press

RANDOR, Pa. (AP) — Oil and natural-gas company Penn Virginia Corp. on Friday cut its 2009 capital spending budget and lowered its production outlook, citing deteriorating commodity prices and continued economic uncertainty.

The Radnor, Pa., company cut its capital budget to between $210 million and $220 million, compared with an earlier estimate of $225 million to $250 million. Penn Virginia's production outlook for the year was reduced to 48 to 50 billion cubic feet of natural gas equivalent, down from its earlier forecast of 51 to 53 Bcfe.

The scaled-back spending plan will mainly result in reduced well completion activity in Mississippi as well as reduced drilling and completion activity in the Mid-Continent region and south Louisiana.

Shares of Penn Virginia fell $1.08, or 9.4 percent, to $10.43 in morning trading.