Feb 25 (Reuters) - Oil and natural gas exploration and production companies including Continental Resources Inc (CLR.N) and Plains Exploration and Production Co (PXP.N) forecast higher spending for 2010 as they bank on higher hydrocarbon prices and increased drilling activity.
Benchmark U.S. crude oil prices CLc1 averaged $76 per barrel in the fourth quarter, up from the third quarter and from a year ago. Natural gas prices have also recovered from their lows, although heavy supplies and weak demand continue to drag.
Plains Exploration raised its capital budget to $1.2 billion, from earlier plans of $900 million to $1.1 billion, and said spending would be directed to the company's core assets in Haynesville shale, the Gulf of Mexico and the Gulf coast.
The company said it was "increasing our average annual production growth target to 15 percent, up from 10 percent, through 2014. Our average annual reserve growth target is 20 percent over the next several years."
Larger peer Continental Resources boosted its 2010 capital budget by 31 percent to $850 million, to accelerate drilling in its properties in the Bakken and Anadarko Woodford plays. [ID:nSGE61O0HK]
"We're building a strong presence in the Anadarko Woodford, which has a strong oil component," Continental CEO Harold Hamm said in a statement. "We believe the Anadarko Woodford is of the quality to be Continental's next major building block."
The company also raised its production growth outlook for 2010 to about 13 percent, up from its earlier view of 10 percent.
Smaller peer Berry Petroleum Corp (BRY.N) also raised its spending outlook, while Venoco Inc (VQ.N) and W&T Offshore Inc (WTI.N) forecast higher budgets year-on-year. [ID:nSGE61O0HQ] [ID:nWNAB1704]
Berry now plans to spend $250 million to $290 million in 2010, compared with its earlier forecast of $220 million to $260 million.
"In 2010, we are focused on returning to growth and expect to increase production from 30,034 barrels of oil equivalent per day (boepd) in 2009 to a range of 32,250 boepd to 33,000 boepd in 2010," Berry said.
The companies posted strong fourth-quarter results, with W&T Offshore, Continental and Plains Exploration beating estimates, while Berry Petroleum came in line with Wall Street's view. [ID:nWNAB1863] [ID:WNAB1786]
Shares of Continental closed at $38.80 on the New York Stock Exchange on Wednesday, while those of Plains closed at $32.08. W&T shares closed at $8.85, Berry at $28.24 and Venoco at $11.75. (Reporting by Arup Roychoudhury in Bangalore; Editing by Mike Miller)
