Energy company Santos has cut $700 million in planned spending and is considering asset sales in response to the weakest oil prices in five years.
But the company insists its finances and underlying performance are strong, despite its plunging share price wiping $8 billion from its market value in just three months.
Planned capital expenditure in 2015 has been cut by a quarter to $2 billion, including $700 million for its 90 per cent complete Gladstone liquefied natural gas project.
Asset divestments remain under consideration, provided they realise "fair long term value", Santos added.
"To be clear, the underlying performance of our business remains strong with production continuing to grow in the second half of this year," chief executive David Knox said.
A volatile oil price means Santos is focused on reducing costs, prudently managing capital and a maintaining a strong balance sheet, he said.
"We remain committed to restoring value for our shareholders," Mr Knox said.
Those shareholders have seen their investments more than halve since mid-September, as crude oil prices dropped 40 per cent.
Santos shares fell another 8.3 per cent, or 63 cents, to $7.00 on Thursday, their lowest level since 2004.
Mr Knox insisted Santos has no present need to raise equity.
But shareholders are wary they will at some stage be asked to boost the company's capital position through a sale of new shares, IG chief market strategist Chris Weston said.
"We always expected a cut back in capital expenditure, the question is now what is their next step," he said.
"I think now they will try to wait this out and hope for a bit of a bounce."
But OPEC expects a drop in demand for its crude, and global supplies are on the rise, meaning further falls are possible, Mr Weston said.
With the GLNG project set for first production in the second half of 2015, Santos is looking forward to resulting cash flow benefits.
"It's a question of just looking at that bridge and making sure they can navigate themselves through to that time without any sort of major catastrophe," Mr Weston said.
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