Chevron To Book $3.5 - $4.0 Bln In Non-cash Charges In Q4

(RTTNews) - Chevron Corp. (CVX) Tuesday announced it will book $3.5 billion to $4 billion in charges for the fourth quarter, due to challenges related to regulations in California and previously sold oil and gas production assets in the Gulf of Mexico.

In a regulatory filing, the company said it will be impairing a portion of its U.S. upstream assets, primarily in California, due to continuing regulatory challenges in the state that have resulted in lower anticipated future investment levels in its business plans. The company expects to continue operating the impacted assets for many years to come.

In addition, the company will be recognizing a loss related to abandonment and decommissioning obligations from previously sold oil and gas production assets in the U.S. Gulf of Mexico, as companies that purchased these assets have filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The company expects to undertake the decommissioning activities on these assets over the next decade.