Chevron Corp. said Tuesday it is cutting its 2020 capital spending program by $4 billion, or 20%, as it works to reduce costs in the face of declining demand due to the coronavirus outbreak and falling crude prices due to oversupply. “Given the decline in commodity prices, we are taking actions expected to preserve cash, support our balance sheet strength, lower short-term production, and preserve long-term value,” including the payment of its dividend, the company said in a statement. The company will reduce production in the Permian Basin by 20%, cut $700 million from upstream projects and exploration and $500 million from its upstream business. It will reduce its downstream and chemicals activities by $800 million. Excluding 2020 asset sales and price related contractual effects, the company expects 2020 production to be roughly flat compared with 2019. The company’s net production increases about 20,000 barrels of oil equivalent per day for each $10 movement lower in Brent oil prices due to contractual effects. The company is further suspending its $5 billion annual share buyback program, after buying back $1.75 billion of stock in the first quarter. “Due to the rapidly changing environment, there continues to be uncertainty and unpredictability around the impact on our results, which could be material,” said the statement. “We expect to provide further updates in the company’s first quarter 2020 earnings press release, earnings call, and Form 10-Q.” Shares were up 7% premarket as the broader market rebounded from recent lows. The stock has fallen 56% in the last 12 months, while the Dow Jones Industrial Average has fallen 27% and the S&P 500 has fallen 20%.