Energy Majors Slash Capex by Nearly $30 Billion
The energy-producing world is dominated by five major companies: BP (NYSE: BP), Total SA (NYSE: TOT), Shell (NYSE: RDS.A) and (NYSE: RDS.B), ExxonMobil (NYSE: XOM), and Chevron (NYSE: CVX). Prior to the start of this year, these majors had more than $112 billion in capital expenditures planned. Then 2020 happened. Let's see what the big energy names' drastic pullback in spending might mean for investors.
All together, these five majors have unveiled nearly $29 billion in cuts to capex for the remainder of 2020 - roughly 25% of what they originally planned to spend. Some waited for quarterly announcements to announce these spending cuts, while others issued these announcements between earnings reports during the first quarter.
The deepest cuts came from Exxon, which cut $9.9 billion from its capex for the year, or 30%, in its May 6 Q1 earnings release.
Source Fool.com
