CHEVRON CORP

Form Type: CORRESP

Filing Date: 2024-08-07

Corporate Action: Bankruptcy

Type: Update

Accession Number: 000009341024000043

Comments: The document outlines Chevron Corporation's response to SEC comments regarding its 2023 Form 10-K. It details an after-tax loss of $1.9 billion recognized in Q4 2023 due to decommissioning obligations reverting to Chevron from bankrupt companies Cox Operating and Fieldwood Energy. The loss primarily stems from significant uncertainties regarding the reversion of these obligations, which were viewed as reasonably possible but not probable until late December 2023 when new information led Chevron to recognize the liabilities as both probable and estimable. The bankruptcy proceedings of Cox in May 2023, along with subsequent court motions to abandon leases, clarified Chevron's exposure to decommissioning costs, prompting an updated liability estimate. Chevron expects to incur significant cash outlays for these obligations over the next decade.

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