Tim Bradley President CO Group - Kinder Morgan
Tim Bradley President CO Group - Kinder Morgan
Tim Bradley President CO Group - Kinder Morgan
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ENERGY PARTNERS, L.P.2009 Cost Reduction Efforts4003002001000500400300200100Opex, Sus. Capex Reductions, $MMBudgetActualExpansion Capex Reductions, $MMSus. Capex<strong>CO</strong>2LaborPowerSurfaceWellworkOutside Op.Purchased <strong>CO</strong>2Cap StaffESS&TYatesSacrocOPEX/Sustaining Capex• Achieved $52.8 MM reduction (15%)• Achieved $48 MM reduction in TOTIExpansion CAPEX• Achieved ~$120 MM reduction (27%)– 135 vendor letters, follow-up discussions– Bidding, Contract negotiations– Wellwork reductions ~ 25-30%– Surface materials, Services ~ 10-15%15%– SACROC capital program changed• Developed fewer, but richer patterns– Low ESP failure rate reduced rig count (1/2 rig)– Accelerated Yates compressors (less rental)– TOTI savings mostly from lower severance tax rates0BudgetActual4