Occidental Reports Continued Momentum Executing Against Key Strategic and Financial Initiatives

Source Press Release
Company Occidental Petroleum CorporationEcopetrol 
Tags Asset Deals, Deals, Tight Gas & Liquids, Unconventional Resources, Upstream Activities
Date November 13, 2019

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 noncore 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."

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