Chevron Corp.and ExxonMobil Corp.both said as part of their 1Q earnings calls that they intend to reduce spending this year due to the financial challenges stemming from the COVID-19 pandemic.CVX reported net income of J3.60B in 1Q,up 36.0% year-on-year.Revenue was at $31.50B in 1Q,down 11.0% year-on-year but above analyst estimates of $29.14B.1Q output was 3.24MM boe/d,up from 3.04MM boe/d from 1Q 2019 and above analyst estimates of 2.77MM boe/d.Despite upstream output rising during the quarter,CVX said that earnings from its upstream oil and gas arm fell from $748MM to $241MM as the average realized price for a barrel of oil the company sold fell from $48/bbl to $37/bbl.The company said it is further lowering its 2020 capex by another $2.00B from previously reduced guidance to $14.00B,but it maintained its dividend.Commenting on its further capex cut,CVX CEO Mike Wirth said,”Chevron is responding to these unprecedented challenges by making changes to what we control,and with a commitment to protect the long-term health and value of the company.
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