HOUSTON, March 25, 2020 /PRNewswire/ -- Occidental
Petroleum Corporation (NYSE: OXY) announced today a further
reduction in 2020 capital spending to between $2.7 billion and $2.9
billion from its original 2020 guidance of $5.2 billion to $5.4
billion, a midpoint reduction of 47 percent. At current
commodity prices, 2020 annual production from continuing operations
is expected to be 1,275,000 to 1,305,000 BOEPD, a reduction of 6
percent compared to prior guidance of 1,360,000 to 1,390,000
BOEPD.
The Company also announced it will reduce 2020 operating and
corporate costs by at least $600
million compared to the original 2020 plan, including
significant salary reductions for executive leadership. These cost
reductions are in addition to previously announced operating
and overhead synergies of $1.1
billion that are expected to be fully realized in 2020. The
combination of synergy realizations and additional cost reductions
is expected to reduce SG&A, Other Operating Expense, and
Exploration Overhead to approximately $500
million on a future quarterly run-rate basis. Operating cost
reductions are expected to lower 2020 domestic operating costs to
approximately $7.00 per BOE.
"We are making solid progress with additional cost reductions to
help withstand the low commodity price environment and other
macroeconomic pressures impacting our industry and the global
economy," said President and Chief Executive Officer Vicki Hollub. "Based on our team's recent
efforts, we now expect to significantly lower our costs in all
aspects of the business. We will continue to take actions as
necessary to further strengthen our balance sheet and ensure the
long-term viability of our business."
About Occidental
Occidental is an international oil and gas exploration and
production company with operations in the
United States, Middle East
and Latin America. We are the
leading producer and largest acreage holder in the Permian Basin.
Occidental is advancing a lower-carbon future with our subsidiary
Oxy Low Carbon Ventures, which promotes innovative technologies
that drive cost efficiencies and economically grow our business
while reducing emissions. Occidental's midstream and marketing
segment provides flow assurance for our oil and gas segment, while
maximizing the value of our products. OxyChem, our chemical
subsidiary, is among the top three U.S. producers for the principal
products it manufactures and markets. Occidental posts or provides
links to important information on our website at oxy.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to statements about Occidental's expectations, beliefs, plans or
forecasts. All statements other than statements of historical fact
are "forward-looking statements" for purposes of federal and state
securities laws, and they include, but are not limited to: any
projections of earnings, revenue or other financial items or future
financial position or sources of financing; any statements of the
plans, strategies and objectives of management for future
operations or business strategy; any statements regarding future
economic conditions or performance; any statements of belief; and
any statements of assumptions underlying any of the foregoing.
Words such as "estimate," "project," "predict," "will," "would,"
"should," "could," "may," "might," "anticipate," "plan," "intend,"
"believe," "expect," "aim," "goal," "target," "objective," "likely"
or similar expressions that convey the prospective nature of events
or outcomes are generally indicative of forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Unless legally required, Occidental does not undertake any
obligation to update any forward-looking statements as a result of
new information, future events or otherwise.
Although Occidental believes that the expectations reflected in
any of our forward-looking statements are reasonable, actual
results may differ from anticipated results, sometimes materially.
Factors that could cause results to differ from those projected or
assumed in any forward-looking statement include, but are not
limited to: global commodity price fluctuations; the extent to
which Occidental is able to successfully integrate Anadarko
Petroleum Corporation (Anadarko), manage expanded operations and
realize the anticipated benefits of combining Occidental and
Anadarko; Occidental's ability to successfully complete the sale of
the remaining assets, liabilities, businesses and operations of
Occidental's Africa assets and
other planned divestitures; world health events; supply and demand
considerations for Occidental's products; higher-than-expected
costs; the regulatory approval environment; not successfully
completing, or any material delay of, field developments, expansion
projects, capital expenditures, efficiency projects, acquisitions
or dispositions; uncertainties about the estimated quantities of
oil and natural gas reserves; lower-than-expected production from
development projects or acquisitions; exploration risks;
disruptions to, capacity constraints in, or other limitations on
the pipeline systems that deliver our oil and natural gas and other
processing and transportation considerations; general economic
slowdowns domestically or internationally; difficult and adverse
conditions in the domestic and global capital and credit markets;
the impact of potential changes in Occidental's credit ratings;
uncertainty from the expected discontinuance of LIBOR and
transition to any other interest rate benchmark; political
conditions and events; liability under environmental regulations,
including remedial actions; litigation; disruption or interruption
of production or manufacturing or facility damage due to accidents,
chemical releases, labor unrest, weather, natural disasters, cyber
attacks or insurgent activity; failure of risk management; changes
in law or regulations; reorganization or restructuring of
Occidental's operations; changes in tax rates; actions by third
parties that are beyond Occidental's control; and the ability to
generate cash to fund operations and repay indebtedness.
Additional information concerning these and other factors can be
found in Occidental's filings with the U.S. Securities and Exchange
Commission, including Occidental's Annual Report on Form 10-K for
the year ended December 31, 2019,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Contacts
Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com
or
Investors:
Jeff Alvarez
713-215-7864
jeff_alvarez@oxy.com
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SOURCE Occidental