Both Exxon Mobil and Chevron on May 1 outlined deep cuts in shale investments in the Permian Basin.
Chevron Corp. on May 1 delivered a year-over-year 38% increase in profits and slashed its capital spending plans by another $2 billion as the coronavirus pandemic guts global demand for oil and gas.
Exxon Mobil Corp. on May 1 joined a parade of oil companies posting downbeat results on plunging oil demand and collapsing prices, reporting a $610 million first-quarter loss after a nearly $3 billion inventory writedown.
Concho Resources reported a bigger first-quarter loss, hurt by a $12.6 billion impairment charge and the oil producer said it would further cut its annual spending following the rout in oil prices.
ConocoPhillips plans to bring total cuts across its North American operations to 460,000 bbl/d by June, which represents a third of the company’s first-quarter oil production on a net basis, CEO Ryan Lance says.
The quarterly loss far exceeded the 35.7 billion peso loss during the January to March period last year and comes as the coronavirus pandemic has cratered demand for crude oil globally.
BP’s first-quarter profit tumbled by two thirds and its debt climbed to its highest on record on April 28 as the coronavirus crisis hammered oil demand, but the energy major kept its dividend despite warning of exceptional uncertainty.
Oilfield service firm Patterson-UTI Energy Inc. on April 23 warned investors it would see a 60% decline in activity this year as shale companies slash spending and halt activity amid an unprecedented decline in oil prices.
Oil services company TechnipFMC said on April 22 it would slash the salaries of executives and retainers paid to company directors by 30%, after cutting its dividend by 75% in search of savings to cushion the impact of the novel coronavirus outbreak.
Kinder Morgan also took a non-cash impairment charge of $950 million in the first quarter related to certain oil and gas producing assets in its CO₂ unit.