As a result of continued low natural gas prices, oil and gas companies have had to recalculate and reduce the value of their assets to reflect the down market, according to ShaleOhio.
Last month, Chevron Corp. recorded a $10 billion impairment last month and more than half of it was attributed to assets in the Appalachian Basin.
Chevron’s recalculations were followed by CNX Resources Corporation writting down $46 million in assets in Pennsylvania.
Next month, EQT Corp., the largest natural gas producer in the country, is expected to write down anywhere from $1.4 to $1.8 billion in assets.
According to the Pittsburgh Post-Gazette, the recent wave of impairments could mean “some oil and gas leases will be allowed to expire without follow-up and some potential drilling locations are now off the table.”
Learn more: ShaleOhio > Continued low natural gas prices spark new round of impairments
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