U.S. stocks suffered their worst session of the coronavirus crisis this week, with scores of companies posting double-digit percentage declines.
Shares of energy companies have been among the largest decliners during most of the down days since the S&P 500 hit its last closing high Feb. 19. The recent free fall of the crude price contributed substantially in the decline.
Particularly Noble Energy was hit sharply with its stock price, declining 80% during the last 30 days and going down to 3 USD from 18. Thus, the company’s market capitalization losing 6 times its value by reaching 1.45 from 8.8 billion USD. Noble Energy which owns and operate offshore blocks in Israel and Cyprus could experience difficulties in investing further in the East Med, which could affect its future development plans. Getting loans from banks will be more difficult and more expensive.
As compared to its earlier announced guidance, the company, till last week, was acting to reduce its planned 2020 capital expenditures by approximately $500 million, or nearly 30%, to now range between $1.1 and $1.3 billion for the year. This number could be further reduced taking into consideration the continuous decline of the crude oil and natural gas prices.