Clayton Williams (Nasdaq:CWEI) announced on Friday that it has raised its guidance for oil production in the fourth quarter, increasing it by a significant 28 percent.
With natural gas prices probably going to be depressed for some time because of enormous supply, Clayton is migrating to more oil production to increase revenue in profits.
A number of other oil and natural gas companies have made the same decision, although a small number have actually increased their natural gas production, possibly thinking there may be more opportunity if enough suppliers cut back on production, which may skew the natural gas supply picture, which may increase the prices if enough supply is abandoned.
The revised daily oil production numbers increased from 14,975 barrels of oil equivalent to 15,892 barrels of oil equivalent for the second quarter. Original projections were for daily oil production to rise from 14,358 barrels of oil equivalent to 15,275 barrels of oil equivalent.
Barrels of oil produced on a daily basis increased from 8,150 barrels to 8,350 barrels, to 8,600 barrels to 8,800 barrels.
Natural gas production is also projected to increase, rising from 33.5 million cubic feet a day to 37.5 million cubic feet a day, to a range between 34.5 million cubic feet to 38.5 million cubic feet.
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