Concho Resources will cut its shale oil exploration and production spending by between $600 million and $800 million after oil prices crashed last week.

The Midland-based oil and gas producer on Tuesday reduced its 2020 capital budget to $2 billion, down about 25 percent from its previously announced plans. The cuts will help the company strengthen its balance sheet and continue paying dividends to shareholders, the company said.

“While our hedge position minimizes the volatility of our cash flow over the near term, we are quickly adjusting our activity to ensure we execute a capital allocation strategy that creates value for our shareholders over the long term,” Chief Executive Tim Leach said in a statement.

Concho is the latest U.S. oil and gas producer to slash spending after a historic oil crash March 9, which saw the price of the U.S. benchmark plunge 25 percent, or more than $10 a barrel, to settle at $31.13 per barrel. The price collapse, the biggest one-day decline since the first Gulf War in January 1991, came as Russia and Saudi Arabia said they would flood the market with cheap crude despite weakening demand caused by the novel coronavirus.

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West Texas Intermediate crude prices were trading at $28.57 per barrel, down 0.45 percent, in early trading Tuesday.

Apache Corp., Devon Energy, EOG, Resources, Marathon Oil, Noble Energy, Occidental Petroleum and Pioneer Natural Resources, reduced their capital budgets by about a third, each cutting at least $500 million from funds used for oil exploration and production across West Texas, New Mexico, Oklahoma and Wyoming. West Texas producers Diamondback Energy and Parsley Energy also began idling oil rigs and laying off fracking crews.