Chevron Plans Assets Sale
U.S. oil major Chevron (CVX) Corp said on Tuesday it is evaluating strategic alternatives, including divestment of gas-related assets in Appalachia shale, Kitimat LNG, and other international projects.
Chevron, which set a 2020 spending program of $20 billion, said these actions are estimated to result in non-cash, after tax impairment charges of $10 billion to $11 billion in its fourth quarter, with more than half related to the Appalachia shale.
The second-largest U.S. oil company also said it will reduce funding to the various gas-related opportunities.
"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", Chief Executive Officer Michael Wirth said.
Chevron reported a 36% drop in third-quarter profit, hit by lower oil and gas prices and refining margins, and warned higher costs would affect its current-quarter results.
It had also warned that it expects additional costs in the fourth quarter from "high" refinery maintenance and from a $430 million tax payment.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Sriraj Kalluvila)