Occidental Reports Continued Momentum Executing Against Key Strategic and Financial Initiatives
November 13 2019 - 9:53AM
Business Wire
Completes Transaction to Form Joint Venture
with Ecopetrol and Sale of Additional Non-Core Assets
Company Expects Proceeds From Asset Sales of at
Least $15 Billion By Middle of 2020
Occidental Petroleum Corporation (“Occidental” or “the Company”)
(NYSE: OXY) today provided an update on its speed and momentum
executing against key strategic and financial initiatives designed
to maximize shareholder value following the close of its
acquisition of Anadarko Petroleum (“Anadarko”) on August 8,
2019.
Occidental’s incremental progress following third-quarter
earnings includes:
- Ecopetrol Joint Venture: Occidental has completed the
transaction to form its previously announced strategic partnership
with Ecopetrol to develop 97,000 net acres of assets in the Midland
Basin for $750 million in cash plus $750 million in carried
capital. The joint venture will allow Occidental to accelerate its
development plans in the Midland Basin, where it currently has
minimal activity, while working with one of Occidental’s most
respected partners.
- Sale of Additional Non-Core Assets: Occidental has
completed the sale of select non-core assets for proceeds of
approximately $200 million, which will be used for
deleveraging.
“We are highly confident that the actions we already have in
progress will allow us to exceed the upper end of our original $10
to $15 billion divestiture goal by the middle of 2020,” said
President and Chief Executive Officer Vicki Hollub. “Closing the
Midland Basin Joint Venture and completing the sale of additional
non-core assets are the latest examples of Occidental’s progress
towards further strengthening our balance sheet.”
Hollub continued, “Deleveraging and strengthening our dividend
remain our top priorities. By the middle of 2020 we expect to have
closed transactions generating proceeds greater than $15 billion
net of taxes, including the value acceleration of non-strategic or
non-core upstream and midstream assets along with the
deconsolidation of WES. We will continue to apply proceeds from
asset sales to debt reduction, along with fully capturing our
acquisition synergies to enhance value for shareholders and
position our dividend for continued growth.”
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. We
also have a marketing and midstream business and WES Midstream,
which includes Western Midstream Partners, LP. 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 communication 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. Forward-looking statements involve estimates,
expectations, projections, goals, forecasts, assumptions, risks and
uncertainties, many of which involve factors or circumstances that
are beyond Occidental’s control. Actual results may differ from
anticipated results, sometimes materially, and reported or expected
results should not be considered an indication of future
performance.
Factors that could cause actual results to differ and that may
affect Occidental’s results of operations and financial position
appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual
Report on Form 10-K for the year ended December 31, 2018, and in
Occidental’s other filings with the U.S. Securities and Exchange
Commission (“SEC”). Additional factors related to the completed
transaction between Occidental and Anadarko Petroleum Corporation
(“Anadarko”) appear in the definitive proxy statement/prospectus
that is a part of Occidental’s registration statement on Form S-4,
as amended, which was declared effective by the SEC on July 11,
2019, in connection with the completed transaction between
Occidental and Anadarko.
Because the factors referred to above could cause actual results
or outcomes to differ materially from those expressed or implied in
any forward-looking statements, you should not place undue reliance
on any such forward-looking statements. Further, any
forward-looking statement speaks only as of the date of this
communication and, unless legally required, Occidental does not
undertake any obligation to update any forward-looking statement,
as a result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191113005533/en/
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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