Please ensure Javascript is enabled for purposes of website accessibility
Chevron Will Write Down Assets by at Least $10 Billion
gvw_ap_news
By Associated Press
Published 4 years ago on
December 11, 2019

Share

SAN RAMON — Chevron Corp. said Tuesday it will book a charge of at least $10 billion because lower long-term prices for oil and natural gas will reduce the value of its assets.
More than half the write-down is related to gas drilling operations in Appalachia.
The huge fourth-quarter write-down — between $10 billion and $11 billion — underscores the challenge posed by rising production that has prevented energy prices from increasing sharply during a time of increasing global demand.
Chevron said it will reduce spending on some investments including Appalachian shale, a liquefied gas terminal in British Columbia, and other international projects. The company said it is evaluating options including selling those assets.
The San Ramon, California-based company disclosed the estimated charge as it announced that capital and exploration spending next year will be held flat at $20 billion. Chevron will focus on operations in the Permian Basin of west Texas and New Mexico, a big project in Kazakhstan, and deepwater drilling opportunities in the Gulf of Mexico.

Chevron Shares Rose 59 Cents to Close at $117.89

Chairman and CEO Michael Wirth said the company must invest in its best assets.

“With capital discipline and a conservative outlook comes the responsibility to make the tough choices necessary to deliver higher cash returns to our shareholders over the long term.” — Chairman and CEO Michael Wirth
“With capital discipline and a conservative outlook comes the responsibility to make the tough choices necessary to deliver higher cash returns to our shareholders over the long term,” he said in a statement.
In trading before the announcement, Chevron shares rose 59 cents to close at $117.89. They were little changed after nearly an hour of extended trading.
Chevron, Exxon Mobil and other major oil companies have come under increasing pressure in recent years to measure how policies to cut carbon emissions will affect their business. At the same time, techniques such as hydraulic fracturing and horizontal drilling that were pioneered in U.S. shale fields have boosted production and undercut prices, even when OPEC and its allies have tried to limit output.
Earlier this month, Spain’s Repsol took a write-down of 4.8 billion euros ($5.3 billion) to its oil and gas assets as it promised to reduce carbon emissions from its operations and products. In late October, BP took a $2.6 billion charge after the London-based company sold some U.S. assets — part of a $10 billion divestment plan — at lower-than-expected prices.

DON'T MISS

Caitlin Clark and Iowa Draw Nearly 5 Million Viewers for Second-Round NCAA Win

DON'T MISS

Canadian School Boards Sue Snapchat, TikTok and Meta for Disrupting Students’ Education

DON'T MISS

California Law Enforcement Agencies Obstruct Transparency Efforts in Use-of-Force Cases

DON'T MISS

No Police Charges for Taylor Swift’s Dad Over Paparazzi Incident in Sydney

DON'T MISS

Biden Administration to Lend $1.5B to Restart Michigan Nuclear Power Plant, a First in the US

DON'T MISS

Tonight’s Biden Fundraiser With Obama and Clinton Already Nets a Record $25 Million

DON'T MISS

Former Sen. Joe Lieberman, Democrats’ VP Pick in 2000, Dead at 82

DON'T MISS

Trump Criticizes Judge and His Daughter After Gag Order in Hush-Money Case

DON'T MISS

CA Insurance Market ‘in Chaos,’ Says Former Insurance Commissioner. Can Lara Fix It?

DON'T MISS

Police Had About 90 Seconds to Stop Traffic Before Baltimore Bridge Fell. 6 Workers Are Feared Dead

No data was found

Stock Market Today: Wall Street Rises to More Records to Close Out Its Latest Winning Month

2 hours ago

A Fresno County First: Kerman Council Passes Amended Gaza Cease-Fire Resolution

2 hours ago

UN Top Court Orders Israel to Open More Land Crossings for Aid into Gaza

2 hours ago

How Involved Is Southern California Consulting Firm in FUSD Executive Dealings?

2 hours ago

Biden’s Fundraiser with Obama and Clinton Nets a Record $25 Million, His Campaign Says

3 hours ago

Fresno Unified’s Self-Protection Racket Is Hurting Our Kids

3 hours ago

Rockin’ Out or Laughing, the Valley Has Its Pick of Weekend Events

4 hours ago

Ex-Correctional Officer at Women’s Prison in California Sentenced for Sexually Abusing Inmates

6 hours ago

Caitlin Clark and Iowa Draw Nearly 5 Million Viewers for Second-Round NCAA Win

7 hours ago

Canadian School Boards Sue Snapchat, TikTok and Meta for Disrupting Students’ Education

7 hours ago

Cronenworth’s Big Hit Helps Lift the Padres to a 6-4 Win Over Melvin’s Giants

SAN DIEGO — Jake Cronenworth’s two-run double highlighted a four-run seventh inning for the San Diego Padres, who beat the San Francis...

1 hour ago

1 hour ago

Cronenworth’s Big Hit Helps Lift the Padres to a 6-4 Win Over Melvin’s Giants

1 hour ago

Shohei Ohtani Reaches 3 Times in Home Debut as the Dodgers Rout the Cardinals 7-1

2 hours ago

Facebook News Tab Will Soon Be Unavailable as Meta Scales Back News and Political Content

2 hours ago

Stock Market Today: Wall Street Rises to More Records to Close Out Its Latest Winning Month

2 hours ago

A Fresno County First: Kerman Council Passes Amended Gaza Cease-Fire Resolution

2 hours ago

UN Top Court Orders Israel to Open More Land Crossings for Aid into Gaza

2 hours ago

How Involved Is Southern California Consulting Firm in FUSD Executive Dealings?

3 hours ago

Biden’s Fundraiser with Obama and Clinton Nets a Record $25 Million, His Campaign Says

MENU

CONNECT WITH US

Search

Send this to a friend