Clayton Williams Energy (CWEI -13.5%) plunges after reporting Q4 earnings and revenues that missed expectations, and the termination of a farm-out and exploration agreement with Caza Oil & Gas (OTCPK:CAZFF).
CWEI says it has suspended drilling operations in both of its core resource plays, and plans to reduce FY 2015 capital spending by 73% to $107M from $404M spent in 2014.
CWEI expects combined oil and gas production for 2015 of 14.2K-14.6K boe/day, an 8%-10% Y/Y decline.
Caza said the original farm-out deal terms are no longer commercially viable in the current oil price environment; the companies had originally agreed to jointly develop CWEI's 14,738 leased net acres in Reeves County, Tex., with Caza paying for 75% of drilling costs for an initial commitment well.
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