ExxonMobil: to cut capex amid oil crisis
(CercleFinance.com) - US oil and gas giant ExxonMobil said on Tuesday that it would cut its capital spending by 30% in 2020 due to low commodity prices and the big hit from the Covid-19 pandemic on the global economy.
Capital investments are now expected to be about 23 billion dollars this year, down from the previously announced 33 billion dollars, the major said in a statement this morning.
Exxon also plans to lower its cash operating expenses by 15%, mostly driven by actions to increase efficiency and reduce costs, the group said.
The biggest share of the cut in capital spending will be in the Permian Basin - the large US shale field that spans Texas and New Mexico, where investments can be more easily adjusted to meet market conditions, the company said.
Reduced activity will affect the pace of drilling and well completions until market conditions improve, ExxonMobil said.
Investors cheered the news, along with the increase in crude oil prices, with the shares up 6.5% on Tuesday morning on the New York Stock Exchange, one of the biggest winners in the Dow Jones index
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Capital investments are now expected to be about 23 billion dollars this year, down from the previously announced 33 billion dollars, the major said in a statement this morning.
Exxon also plans to lower its cash operating expenses by 15%, mostly driven by actions to increase efficiency and reduce costs, the group said.
The biggest share of the cut in capital spending will be in the Permian Basin - the large US shale field that spans Texas and New Mexico, where investments can be more easily adjusted to meet market conditions, the company said.
Reduced activity will affect the pace of drilling and well completions until market conditions improve, ExxonMobil said.
Investors cheered the news, along with the increase in crude oil prices, with the shares up 6.5% on Tuesday morning on the New York Stock Exchange, one of the biggest winners in the Dow Jones index
Copyright (c) 2020 CercleFinance.com. All rights reserved.