Hess Corp. said it will further scale back capital spending in response to an oil-price collapse worsened by the coronavirus pandemic.

The exploration and production company in its first quarter results said it plans to reduce 2020 capital expenditures (capex) to $1.9 billion, with lower rig counts in North Dakota and slowed drilling elsewhere.

“The pandemic has had a severe impact on near-term oil demand,” necessitating the cuts, CEO John Hess told analysts on an earnings call.

The New York City-based independent said in March that it would trim capex by $800 million to $2.2 billion. The latest cuts to capex, by $300 million, have reduced spend by nearly 40% from its original $3 billion plan heading into 2020.

The reduction plans involve dropping five of six rigs in the Bakken Shale. Most discretionary exploration and offshore drilling activities were already to be deferred. Though discretionary work will continue in Guyana — a priority for Hess — it will not go untouched.

“This reduction will be achieved primarily by shifting from a six-rig program to one rig in the Bakken (Shale) by the end of this month and the deferral of certain exploratory and development expenditures in Guyana,” Hess said.

Hess and partner ExxonMobil have deferred the development of the Payara field for up to 12 months, pending Guyana government approvals.

Hess plans to maintain one rig in the Bakken until West Texas Intermediate prices stabilize at around $50/bbl. If that does not happen this year, the operator may idle its lone rig.

“We really don’t want to do that, but it’s clearly a lever that we can look at as we move into 2021,” CFO John Rielly said during the call.

[Want to see more earnings? See the full list of NGI’s 1Q2020 earnings season coverage.]

A crude price war between Russia and Saudi Arabia during the first quarter battered oil prices. Onset of the pandemic in March amplified the headwinds. Demand fallout from stay-at-home orders intended to slow the spread of the coronavirus have kept heavy pressure on prices, necessitating production pullbacks across the oil industry.

Hess grew 1Q2020 Bakken average production 46% year/year to 190,000 boe/d. However, the level is set to decline to 185,000 boe/d in 2Q2020 and to roughly 175,000 boe/d on average for the year.

Global 1Q2020 production, excluding Libya, increased 24% from a year earlier to 344,000 boe/d. Hess has lowered its full-year production guidance to 320,000 boe/d from a prior range of 325,000-330,000 boe/d. Libya net production was 5,000 boe/d in the first quarter, down from 21,000 boe/d.

Hess swung to a 1Q2020 loss of $2.4 billion (minus $8.00/share) from net income of $32 million (9 cents) a year earlier. The loss included a one-time impairment on assets and other after-tax charges of $2.25 billion because of low commodity prices.