ExxonMobil (NYSE: XOM) reported a $610 million loss in the first quarter, the first loss in more than three decades ,April 8.
The supermajor said it would idle 75 percent of its rigs in the Permian basin, where it will concentrate its cuts because of the short-cycle nature of drilling. It also projects that spending will fall by 30 percent.
ExxonMobil and Chevron (NYSE: CVX) will shut in a combined 800,000 bpd in response to the collapse of the US oil market.
Exxon maintained its dividend and has taken on billions of dollars in debt to finance the spending gap, contributing to a credit downgrade in recent weeks. Exxon needs oil prices at about $75 per barrel to break even and to pay shareholder dividends. Its peers only need around $50 per barrel ,according to Oil price.com.
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