Crescent Point Energy on Dec. 4 forecast lower capital spending and output in 2021, the latest oil producer to focus on conserving cash, as it prepares for low prices over a longer horizon.

Energy companies have cut spending aggressively in a race to offset weak trends in fuel demand caused by the COVID-19 pandemic, with U.S. oil major Chevron on Dec. 3 cutting billions off its long-term capital and exploratory budget.

However, Crescent Point’s reduction in output also comes at a time when Canadian oil companies are restoring output that they shut in, as prices recover from pandemic lows.

Crescent Point said it expects average production of 108,000 to 112,000 barrels of oil equivalent per day (boe/d) in the coming year, as pace of activity remains low.

The company, which focuses primarily on light oil production in southern Saskatchewan, said it expects capital expenditures of C$475 million to C$525 million (US$408.46 million) next year, with majority of the budget allocated to its key focus areas in Viewfield, Shaunavon and Flat Lake.

Scotiabank said Crescent’s 2021 capital program was meaningfully lower than consensus and it had a positive view of the defensive budget.

Its latest 2020 budget, revised multiple times due to the pandemic, was for capital expenditures of about C$665 million and production of up to 121,000 boe/d this year.

Crescent Point, however, expects excess cash flow of about C$150 to C$300 million in 2021 at U.S. West Texas Intermediate (WTI) in the range of $45/bbl to $50/bbl. It also plans to evaluate other opportunities including returning capital to shareholders as market conditions improve.