Marathon Oil Corp. /zigman2/quotes/205031829/composite MRO -0.84% said Tuesday it will cut its 2020 capital budget by $500 million, or 21%, to $1.9 billion. The stock surged 21.2% in premarket trading, after plunging 46.9% on Monday. The company said the cut was in response to the "dramatic fall" in commodity prices, as it aims to prioritize financial flexibility and the dividend. As part of the cut, the company said it will immediately suspend all operated drilling and completion activity in Oklahoma, meaningfully reduce drilling and completion activity in the Northern Delaware and suspend Resource Play Exploration (REx) drilling and leasing activity, while optimizing development programs in the Eagle Ford and Bakken. "In response to the recent commodity price volatility from simultaneous supply and demand shocks, we're taking swift and decisive action to defend our cash flow generation, protect our balance sheet, and fund our dividend," said Chief Executive Lee Tillman. Crude oil futures /zigman2/quotes/209723049/delayed CL00 +0.54% rose 9.4%, after plummeting 24.6% on Monday. Marathon's stock has lost 71.2% over the past three months through Monday while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.24% has shed 12.3%.