Photo: Reuters
HOUSTON (Reuters) - Exxon Mobil Corp on Monday said it would write down the value of natural gas properties by $17 billion to $20 billion, its biggest ever impairment, and slash project spending next year to its lowest level in 15 years.
The oil major is reeling from the sharp decline in oil demand and prices from the COVID-19 pandemic and a series of bad bets on projects when prices were much higher.
New cost cuts aim to protect a $15 billion a year shareholder payout that many analysts believe is unsustainable without higher prices.
The write-down lays bare the size of the miscalculation that the company made in 2010 when it paid $30 billion for U.S shale producer XTO Energy as natural gas prices went into a decade-long decline.
The write-down also includes properties in Argentina and western Canada.
While smaller than the up to $30 billion charge the company forecast a month ago, the quarterly charge to earnings reflects the company's recent reduction in its outlook for oil and gas prices.
Exxon shares fell 5% in late trading to $38.13 and are down by half in the last five years.
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