Chevron surprised a number of people last week when it announced that it would take a non-cash, after-tax impairment charges of $10 billion to $11 billion in its fourth-quarter 2019 results. Chevron issued a press release on December 10, 2019 that read in part: “As a result of Chevron’s disciplined approach to capital allocation and a downward revision in its longer-term commodity price outlook, the company will reduce funding to various gas-related opportunities including Appalachia shale, Kitimat LNG, and other international projects. Chevron is evaluating its strategic alternatives for these assets, including divestment. In addition, the revised oil price outlook resulted in an impairment at Big Foot. Combined, these actions are estimated to result in non-cash, after-tax impairment charges of $10 billion to $11 billion in its fourth-quarter 2019 results, more than half related to the Appalachia shale.” Given that Chevron earned $14.8 billion in 2018, this seems to […]