HOUSTON, Dec. 22 -- U.S. oil giant Continental Resources Inc. announced Monday that it will cut its 2015 spending by 40 percent and reduce its operated rig count by a third, in response to the tumbling crude prices.

The exploration and production company said it plans to spend 2.7 billion U.S. dollars on capital expenditures next year, much lower than the 4.6 billion dollars budget it announced last month.

"This revised budget prudently aligns our capital expenditures to lower commodity prices, targeting cash flow neutrality by mid-year 2015," chief executive officer Harold Hamm said in a statement.

Continental, based in Oklahoma City, also decreased its expected average rig count.

The company is not the only U.S. producer to announce budget cuts in response to falling crude prices. Earlier in December, ConocoPhillips, the third-largest U.S. oil producer behind ExxonMobil and Chevron, said it would cut its budget by 20 percent to 13.5 billion dollars.

Analysts expect most energy companies to cut their 2015 spending by 20 percent or more.