U.S. oil producer Chevron (NYSE:CVX) on Thursday said it will take up to $1.5 billion in fourth-quarter charges for restructuring, asset impairments and property sales costs.
Much of the charges are for job cuts and relocations planned for the next two years, the company said in a statement. Chevron did not disclose how many jobs would be lost among its 45,000 workers.
The cost cutting and asset sales come amid a year-long profit slide that required borrowing to cover shareholder payouts. The No. 2 U.S. oil producer earlier said it aimed to cut up to $3 billion in costs through 2026.
Oil companies have turned to acquisitions to lift reserves and output, requiring less expenditures on new fields. Chevron will cut 2025 project spending by $2 billion from about $19 billion this year, after offering $53 billion to buy rival Hess (NYSE:HESS).
Severance pay and relocations will account for up to $900 million of the after-tax charges, and asset impairments and sales of properties will add up to $600 million, the company said.
Chevron said the asset impairments would not affect adjusted earnings. Financial firm LSEG projects Chevron’s fourth-quarter profit at $4.35 billion, or $2.42 per share, from $6.45 billion, or $3.45 per share, in the year-ago quarter.
Charges have become a nearly annual exercise. Chevron took a $3.7-billion impairment charge a year ago, $1.1 billion in 2022 and $4.8 billion in 2020.
CVX shares descended $2.80, 1.8%, to $156.53.
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