Occidental Petroleum Provides Hurricane Harvey Business Impact Update
October 03 2017 - 8:00AM
Business Wire
Occidental Petroleum Corporation (NYSE:OXY) announced third
quarter 2017 business impacts of Hurricane Harvey as operations
have returned to pre-storm levels. Overall, the storm caused
minimal disruptions to operations and Occidental expects this
one-time financial and production impact to be limited to the third
quarter.
The company experienced Hurricane Harvey business impacts within
the Chemicals, Midstream and Permian Resources segments. Some
Chemicals and Midstream operations suspended operations along the
Gulf Coast, while Permian Resources encountered third-party
disruptions, impacting production due to gas processing and NGL
delivery.
“We are very proud of our team’s efforts to safely enact our
business continuity plans across impacted assets and manage our
business during and after the storm,” said President and CEO Vicki
Hollub. “We remain on track and continue along our pathway to break
even at $50 after dividend and production growth and our long-term,
returns-focused value proposition.”
For the third quarter, the impacts of Hurricane Harvey are
anticipated to be:
- Chemicals segment pre-tax income
reduction of approximately $60 million
- Midstream segment pre-tax income
reduction of approximately $10 million
- Permian Resources daily production
reduced by approximately 1,000 barrels of oil equivalent
(BOE) per day
- Permian EOR was minimally impacted due
to this asset area’s infrastructure position
To prepare for Hurricane Harvey, our Chemicals business safely
shut down its facilities at Ingleside and Houston well
ahead of any storm impact. At Ingleside, the ethylene cracker
resumed operation on September 11, while production at
the vinyl chloride monomer (VCM) and chlor-alkali facilities
resumed on September 15 and September 16,
respectively.
At the Houston complex, the Pasadena and Deer Park polyvinyl
chloride (PVC) plants restarted August 31. The Battleground
chlor-alkali facility resumed production September
2, and the LaPorte VCM plant resumed production
on September 6. Deer Park VCM resumed production on September
18, due to a lack of utilities from
a third-party supplier.
In our Midstream segment, the Oxy Ingleside Energy Center oil
export terminal suspended operations August 25, when the Port of
Corpus Christi closed ahead of the storm. The facility reopened
August 30, and on September 2 shipped the first cargo of crude oil
from the Western Gulf Coast after port operations commenced.
About Occidental
Petroleum
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United
States, Middle East and Latin America. Headquartered in Houston,
Occidental is one of the largest U.S. oil and gas companies, based
on equity market capitalization. Occidental’s midstream and
marketing segment gathers, processes, transports, stores, purchases
and markets hydrocarbons and other commodities. The company’s
wholly owned subsidiary OxyChem manufactures and markets basic
chemicals and vinyls. Occidental posts or provides links to
important information on its website at www.oxy.com.
Forward-Looking
Statements
Portions of this press release contain forward-looking
statements and involve risks and uncertainties that could
materially affect expected results of operations, liquidity, cash
flows and business prospects. Actual results may differ from
anticipated results, sometimes materially, and reported results
should not be considered an indication of future performance.
Factors that could cause results to differ include, but are not
limited to: global commodity pricing fluctuations; 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; general economic slowdowns
domestically or internationally; 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; or changes in tax rates. 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 generally indicate forward-looking statements. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this 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. Material risks that may affect Occidental’s
results of operations and financial position appear in Part I, Item
1A “Risk Factors” of the 2016 Form 10-K.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171003005894/en/
Occidental Petroleum CorporationMedia:Melissa E.
Schoeb713-366-5615melissa_schoeb@oxy.comorInvestors:Richard A.
Jackson713-215-7235richard_jackson@oxy.comOn the web:
www.oxy.com
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