Why Chevron’s $10 Billion Impairment Matters

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…