Chevron will announce a $10-11 billion dollar impairment against 4th quarter earnings. The impairment will be write downs of the value of its Appalachian and Permian assets. Watch the news tonight.
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Profitable? Huh, under the eyes of MW TCO so far has gone 10B over budget, what profitability are you talking about?
I congratulate Mike W on getting on with making Chevron profitable in the current and future O&G environment. The former and current employees with Chevron stock in their 401k will benefit. The stock has been flat for the past 2 years and Chevron needs this to break out of this stagnation.
More like— People will be tied to an anchor, and thrown overboard.
There won’t be layoffs as Anchor project just got sanctioned.
People will be moved to anchor.
Instead of firing people, mike should lower his pathetic salary and all compensation apparently come to an staggering 19 million. That is just absurd. Bloody greedy people that prefer to led go many who actually need a paycheck
The thought of getting laid off makes me horny.
Merry Christmas chevroids. There goes your retirement, college funds, and career. Nothing but greed and wet dreams at this company. Bail while you can. Don’t believe the lies
Precisely. Most of us know a write-down is an accounting term for the reduction in the book value of an asset. While that’s happening on the books, rest assured another type of write-down, in human terms, is also in progress. You can’t forget the company’s stockholder. To retain stock value as best as possible, something will have to compensate for the loss of asset value. Yep, you guessed it. It’s always a good culling of the herd. AMBU was trouble ever since Chevron made the knee jerk decision to buyout Atlas and make the play for gas shale. I knew it to be a huge risk as soon as the announcement was made. Half of the asset value write-down alone is due to AMBU. But no matter the blunders, it’s always the loyal employee who will pay the price. Try not to let it dull your Christmas and New Year celebrations.
There is just way too much of that 'Human Energy' at Chevron. Don't worry though. Wirth is going to clean up and dispose of all that excess energy. It will be a stellar example of HR providing 100's of examples of OE as they process your departure papers.
This is a write-down, from Investopedia.
A write-down is an accounting term for the reduction in the book value of an asset when its fair market value (FMV) has fallen below the carrying book value, and thus become an impaired asset. The amount to be written down is the difference between the book value of the asset and the amount of cash that the business can obtain by disposing of it in the most optimal manner.
A write down is necessary if the fair market value (FMV) of an asset is less than the carrying value currently on the books.
The income statement will include an impairment loss, reducing net income.
On the balance sheet, the value of the asset is reduced by the difference between the book value and the amount of cash the business could obtain by disposing of it in the most optimal manner.
An impairment can not be deducted on taxes until the asset is sold or disposed.
If an asset is being "held for sale," the write down will also need to include the expected costs of the sale.
This should clear up any uncertainty.
It appears that Chevron does not consider this to be prime, high-dollar producing land. Obviously related to the asset write-down.
Just got email from AMBU VP stating Chevron is beginning process of marketing PA, WV & OH assets. Merry Christmas.
Nothing is sold. The value of the acreage is being reduced. This is an accounting issue. Not real money.
Please explain what will be sold in Permian?
This was announced on 4:19 PM EST. You're 5 minutes late. NOT news-worthy.