Noble Energy provided an update on actions it is taking in response to the COVID-19 pandemic and significant decline in oil and gas demand and prices.

"Recent events have had an unprecedented and unpredictable impact on the global economy and the oil and gas industry," said David L. Stover, Noble Energy’s Chairman and CEO. "We are acting quickly and aggressively to confront today’s economic challenges with a focus on Noble Energy’s financial strength and to position the Company to improve shareholder value. Noble Energy benefits from a high-quality, low-decline portfolio, strong capital discipline, and an ability to flex spending as appropriate. The actions taken to date are expected to generate more than one billion dollars in annualized cash savings, and we will continue to remain agile to ensure the long-term success of the business."

In addition to previously communicated capital and cost initiatives, Noble Energy has:

• Reduced planned capital expenditures for 2020 by an additional $350 million to now range from $800 to $900 million. As compared to original guidance, 2020 capital expenditures have been reduced 50% at the midpoint
• Identified an additional $125 million in cash cost savings (from lease operating, production taxes, gathering and transportation, general and administrative, and asset retirement). These actions are anticipated to reduce cash outlay for 2020 by over $175 million versus original plan
• Lowered executive leadership salaries by 10-20 percent and decreased cash retainer to directors by 25 percent through year-end 2020
• Implemented employee furlough and part-time programs to align the Company’s workforce with near-term activity levels
• Cash-settled certain 2020 crude oil hedges that had reached maximum value, generating an additional $145 million in realized gains in the first quarter, and added new downside oil hedge protection through the remainder of 2020
• Ensured ample cash on hand by drawing $1 billion on the Company’s unsecured $4 billion revolving credit facility as of the end of March 2020
• Reduced the Company’s quarterly cash dividend to an annualized per share amount of $0.08

See the full release here.