ExxonMobil Slashes Capex 30% in Light of COVID-19 Impact

ExxonMobil (NYSE: XOM) just became the latest oil company to slash its spending amid crashing crude prices. The energy giant on Tuesday announced it would be reducing its 2020 capital budget by 30% from $33 billion to $23 billion, and cutting operating expenses by 15%. These moves will help offset some of the impacts from the COVID-19 outbreak, which has cratered demand for oil and taken prices down with it.

It was just over a month ago that ExxonMobil reaffirmed its spending plans for this year. During its March 5 investor day meeting, CEO Darren Woods said the company would "use the strength of our balance sheet to invest through the cycle." However, market conditions have significantly deteriorated since then, putting pressure on ExxonMobil's balance sheet, which led S&P Global to downgrade its credit rating.

Image source: Getty Images.

Source Fool.com