U.S. oil producers wrote down asset values, announced spending cuts in first quarter of 2020 (7/15/2020)

According to their publicly filed financial statements, 40 U.S. oil producers collectively wrote down $48 billion worth of assets in the first quarter of 2020. Low oil prices contributed to significant declines in revenue and the value of proved reserves for these companies. Writing down the value of an asset—also called an impairment—is a non-cash adjustment when a company formally acknowledges the value of an oil property has declined below the cost of developing it and the company updates the estimated fair value. First-quarter 2020 financial results also reveal steps many companies took to stabilize cash flows, including increased use of credit and announcements of significant cuts to capital expenditure budgets. ... More »