Occidental Provides Update on Divestiture and Deleveraging Initiatives
September 30 2019 - 1:00AM
Business Wire
Completes Sale of Anadarko’s Mozambique LNG
Stake to Total Seven Weeks After Closing the Anadarko
Transaction
Occidental Petroleum Corporation (“Occidental”
or “the Company”) (NYSE: OXY) today provided an update on its
divestiture and deleveraging initiatives following the recent close
of its acquisition of Anadarko Petroleum (“Anadarko”) on August 8,
2019.
Occidental’s progress includes:
- Sale of Anadarko’s Mozambique LNG Stake to Total:
Occidental has completed the sale of Anadarko’s Mozambique LNG
stake to Total S.A. (“Total”) (NYSE: TOT), for $3.9 billion. As
previously announced, Occidental entered into a binding agreement
to sell Anadarko’s African assets to Total for $8.8 billion.
Following the completion of the Mozambique transaction, Occidental
and Total continue to work towards closing the remaining Africa
transactions in Algeria, Ghana and South Africa pursuant to the
definitive agreement signed in August 2019.
- Sale of the Plains Stake: Occidental completed the sale
of its holdings in Plains All American Pipeline, L.P. (NYSE: PAA)
and Plains GP Holdings, L.P. (NYSE: PAGP) (“Plains”) for $650
million.
- Ecopetrol Joint Venture: In conjunction with
Occidental’s second quarter 2019 earnings, Occidental announced a
strategic partnership with Ecopetrol to develop Midland Basin
acreage for $750 million in cash plus $750 million in carried
capital. The transaction is expected to close before year end.
Occidental remains on track to deliver $10 to $15 billion of
planned asset sales and remains confident in its deleveraging
strategy. Occidental will continue to take actions to drive value
for all of the Company’s stakeholders.
“We have made progress quickly on our post-acquisition
divestiture and deleveraging goals and remain confident in our
ability to realize the full value of the Anadarko acquisition for
our shareholders,” stated Vicki Hollub, President and Chief
Executive Officer. “Upon completion of our recent initiatives, we
will have reached approximately $10 billion of our targeted
divestitures with more to follow.”
About
Occidental
Occidental 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
purchases, markets, gathers, processes, transports and stores
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 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
include, but are not limited to: Occidental’s ability to consummate
the sale of Anadarko’s assets in Algeria, Ghana and South Africa to
Total; the conditions to the completion of the sale of Anadarko’s
assets in Algeria, Ghana and South Africa to Total; that the
regulatory approvals required for the sale of Anadarko’s assets in
Algeria, Ghana and South Africa to Total may not be obtained on the
terms expected or on the anticipated schedule or at all;
Occidental’s ability to meet expectations regarding the timing,
completion and accounting and tax treatments of the sale of
Anadarko’s assets in Algeria, Ghana and South Africa to Total; that
Occidental is subject to intense competition and increased
competition is expected in the future; and general economic
conditions that are less favorable than expected.
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 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/20190929005067/en/
Media: Melissa E. Schoeb 713-366-5615 melissa_schoeb@oxy.com
or
Investors: Jeff Alvarez 713-215-7864 jeff_alvarez@oxy.com
On the web: oxy.com
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