Exxon Plans Spending Cuts in Response to Oil Crash
March 16 2020 - 8:35PM
Dow Jones News
By Christopher M. Matthews
Exxon Mobil Corp. said Monday that it is looking to
significantly reduce spending as a result of market conditions
caused by the coronavirus pandemic and oil price rout.
"Based on this unprecedented environment, we are evaluating all
appropriate steps to significantly reduce capital and operating
expenses in the near term," Chief Executive Darren Woods said in a
statement Monday.
The company said it would outline specific cost-cutting plans in
the future.
Rival Chevron Corp. has previously said it was also looking for
ways to cut spending. Dozens of smaller U.S. oil and gas companies
are dramatically reducing budgets and curtailing oil and gas
production as they enter survival mode in response to the price
plunge.
Global oil prices have fallen below $30 a barrel in recent days
to their lowest levels in years. Meanwhile, shares of S&P 500
energy companies have hit their lowest level in more than 15 years,
while Exxon and Chevron have lost about $200 billion in combined
market value already this year.
On average, drillers are planning to spend about 40% less than
they did last year, according to a J.P. Morgan Chase & Co.
analysis of roughly a dozen public producers that disclosed new
budget plans last week.
Write to Christopher Matthew at Christopher.Matthews@WSJ.com
(END) Dow Jones Newswires
March 16, 2020 20:20 ET (00:20 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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