From Investing.com:

Exxon Mobil Corp is set to write down $2.5 billion of California assets in the fourth quarter due to lower operating profits and energy prices. The company’s estimated impairment to oil and gas properties along the Southern California coast is expected to be between $2.4 billion and $2.6 billion. This marks another exit by large oil companies from California due to its mature oilfields and regulatory policies.

Chevron, the second largest U.S. oil producer, also recently announced it would write down up to $4 billion in assets, primarily in California. Despite the charges, RBC analyst Biraj Borkhataria expects investors to view the update as neutral, with the quarter’s net profit expected to be around $9 billion, or $2.20 per share.

Exxon Mobil’s full results are expected on Feb. 2. Prices in the fourth quarter averaged $82.85, down 7% from the year-ago period and a 4% decline from the third quarter. Operating profits are set to drop by about $2.2 billion compared to the third quarter, with higher prices expected to add about $600 million to operating profits.



Read more: Exxon earnings to drop on California offshore exit, weaker prices By Reuters