All other O&G majors have adjusted balance sheet as a result of prolonged downturn. Why has Exxon taken a different stance?
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In yesterday's earnings call, XOM stated it would review assets for impairment charges according to laws and regulations. If a big impairment charge comes, it will be in 4Q (announced in Jan 21) and size depends on average oil price in 2020. This is also when annual reserves are re-determined and when other operator's report results on properties operated by other companies. XOM does its impairment calculation on "successful efforts" basis. This is different than the "full cost" basis used by many smaller oil companies. XOM strictly follows the laws, regulations and accounting standards on these impairment charges. I expect some small charges in 3Q and 4Q, but nothing as large as other IOCs.
Why write down assets in the middle of the downturn. Assets will come back with the price of oil.
They should write them off and get it over with, market is already down and they shouldn’t get punished more
Hotter everyday
Is it hot enough to sweat in Canada yet?
To maintain Stock prices. Why write down to make losses look worse?
Its a shell game with Exxon.