Item 2.06 Material Impairments
On December 4, 2019, the Board of Directors of Chevron Corporation ("Chevron")
completed its annual review and approval of Chevron's business plan and capital
expenditure program. As a result of Chevron's disciplined approach to capital
allocation and a downward revision in its longer-term commodity price outlook,
Chevron will reduce funding to various natural gas-related upstream
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.
Chevron does not expect these impairments to result in any material future cash
expenditures.
Item 7.01 Regulation FD Disclosure
On December 10, 2019, Chevron issued a press release announcing Chevron's
capital and exploratory budget for 2020 and impairment charges that will be
reflected in its fourth quarter 2019 results. A copy of the press release is
furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit Number Description
99.1 Press release issued by Chevron Corporation on December 10, 2019
104 Cover Page Interactive Data File, formatted in Inline XBRL
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