CIE’s capex guidance
For fiscal 2017, Cobalt International Energy (CIE) plans to spend significantly less on capex (capital expenditure). According to CIE’s Investor Presentation, its fiscal 2017 capex will be ~56.0% less than fiscal 2016.
It plans to spend the majority of its capital budget on operating activities in the US Gulf of Mexico at the North Platte, Shenandoah, Anchor, and Heidelberg fields. CIE plans to complete the majority of its US Gulf of Mexico drilling activities by the end of 2Q17.
G&A and interest expenses
CIE’s capex guidance excludes G&A (general and administrative) and interest expenses. For fiscal 2017, CIE reduced its G&A budget by ~47.0% compared to 2016. The steep fall in its G&A budget can be attributed to the 60.0% lower staff headcount in 2017 compared to 2016.