Occidental Petroleum Cuts 2020 Capital Budget Again

By Colin Kellaher

Occidental Petroleum Corp. on Wednesday said it is further slashing its 2020 capital spending plans as it grapples with a collapse in oil prices amid a slowdown in economic activity due to the coronavirus pandemic.

The Houston energy company said it now plans to spend $2.7 billion to $2.9 billion this year, a midpoint reduction of 47% from its original budget of $5.2 billion to $5.4 billion.

Occidental earlier this month had said it would reduce the budget to between $3.5 billion and $3.7 billion as it announced an 86% reduction in its quarterly dividend.

Occidental on Wednesday also lowered its full-year production guidance by 6% and said it would reduce 2020 operating and corporate costs by at least $600 million compared with its original plan.

The company said it now expects annual production at current commodity prices of 1.275 million to 1.305 million barrels of oil equivalent a day, down from prior guidance of 1.36 million to 1.39 million BOE a day.

Shares of Occidental rose 3.4% to $11.05 in premarket trading Wednesday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

March 25, 2020 08:32 ET (12:32 GMT)

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