Chevron Plans Asset Sales; Expects Up To $11 Bln Charges In Q4

(RTTNews) - Chevron Corp (CVX) said that 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 that it will reduce funding to various gas-related opportunities.

The company estimates that these actions will 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.

In the upstream business, about $11 billion is expected to sustain and grow currently producing assets, including about $4 billion for Permian unconventional development and about $1 billion for other international unconventional development.

About $2.8 billion of planned capital spending is associated with the company's downstream businesses that refine, market, and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.