Occidental Announces Continued Progress on Debt Reduction and Divestiture Initiatives
Occidental (NYSE: OXY) has announced significant progress in its debt reduction and divestiture initiatives. The company has achieved $3 billion in principal debt reduction in the third quarter of 2024, utilizing robust organic cash flow and divestiture proceeds. A public offering of Occidental's common units in Western Midstream Partners, LP raised $700 million, bringing total 2024 year-to-date closed or announced divestments to approximately $1.7 billion.
Following the expected close of the Delaware Basin Barilla Draw divestiture in late Q3, Occidental anticipates a total year-to-date reduction of over $3.8 billion in principal debt. This represents nearly 85% of their near-term $4.5 billion debt reduction commitment. The company plans to continue its deleveraging efforts through free cash flow and ongoing divestitures.
Occidental (NYSE: OXY) ha annunciato progressi significativi nelle iniziative di riduzione del debito e dismissione. L'azienda ha raggiunto una riduzione del debito principale di $3 miliardi nel terzo trimestre del 2024, utilizzando un robusto flusso di cassa organico e i proventi delle dismissioni. Un'offerta pubblica delle unità ordinarie di Occidental in Western Midstream Partners, LP ha raccolto $700 milioni, portando il totale delle dismissioni chiuse o annunciate nel 2024 a circa $1,7 miliardi.
In attesa della chiusura prevista della dismissione del Barilla Draw nel Delaware Basin alla fine del Q3, Occidental prevede una riduzione totale dell'anno in corso di oltre $3,8 miliardi in debito principale. Questo rappresenta quasi l'85% del loro impegno a ridurre il debito a breve termine di $4,5 miliardi. L'azienda prevede di continuare i suoi sforzi di deleveraging attraverso il flusso di cassa libero e dismissioni in corso.
Occidental (NYSE: OXY) ha anunciado avances significativos en sus iniciativas de reducción de deuda y desinversión. La compañía ha logrado una reducción de deuda principal de $3 mil millones en el tercer trimestre de 2024, utilizando un sólido flujo de efectivo orgánico y los ingresos de la desinversión. Una oferta pública de las unidades ordinarias de Occidental en Western Midstream Partners, LP recaudó $700 millones, llevando el total de desinversiones cerradas o anunciadas en 2024 a aproximadamente $1.7 mil millones.
Tras el cierre esperado de la desinversión de Barilla Draw en la cuenca de Delaware a finales del Q3, Occidental anticipa una reducción total del año en curso de más de $3.8 mil millones en deuda principal. Esto representa casi el 85% de su compromiso de reducción de deuda a corto plazo de $4.5 mil millones. La empresa planea continuar sus esfuerzos de desapalancamiento a través del flujo de efectivo libre y desinversiones continuas.
옥시덴탈(뉴욕증권거래소: OXY)은 부채 감소 및 자산 매각 이니셔티브에서 중요한 진전을 발표했습니다. 이 회사는 2024년 3분기에 30억 달러의 원금 부채 감소를 달성하였으며, 강력한 유기적 현금 흐름과 매각 수익을 활용했습니다. 옥시덴탈의 Western Midstream Partners, LP에 대한 일반주 공개에 따라 7억 달러가 모금되어, 2024년 현재 연간 총 매각 금액이 약 17억 달러에 이릅니다.
2024년 3분기 말에 델라웨어 분지 바릴라 드로우 매각이 완료될 것으로 예상됨에 따라, 옥시덴탈은 올해 원금 부채가 38억 달러 이상 감소할 것으로 예상하고 있습니다. 이는 단기적으로 45억 달러 부채 감소 약속의 거의 85%에 해당합니다. 이 회사는 자유 현금 흐름과 지속적인 매각을 통해 디레버리징 노력을 계속할 계획입니다.
Occidental (NYSE: OXY) a annoncé des progrès significatifs dans ses initiatives de réduction de la dette et de désinvestissement. L'entreprise a réalisé une réduction de 3 milliards de dollars de la dette principale au troisième trimestre 2024, en utilisant un flux de trésorerie organique solide et les produits des désinvestissements. Une offre publique des unités ordinaires d'Occidental dans Western Midstream Partners, LP a permis de lever 700 millions de dollars, portant le total des désinvestissements clos ou annoncés en 2024 à environ 1,7 milliard de dollars.
Suite à la fermeture attendue de la désinvestissement de Barilla Draw dans le Delaware Basin à la fin du Q3, Occidental anticipe une réduction totale à ce jour de plus de 3,8 milliards de dollars de dette principale. Cela représente près de 85 % de leur engagement à réduire la dette à court terme de 4,5 milliards de dollars. L'entreprise prévoit de continuer ses efforts de désendettement grâce à des flux de trésorerie libres et des désinvestissements en cours.
Occidental (NYSE: OXY) hat bedeutende Fortschritte bei seinen Initiativen zur Reduzierung von Schulden und Veräußern erzielt. Das Unternehmen hat im dritten Quartal 2024 eine Reduzierung der Hauptverbindlichkeiten um 3 Milliarden US-Dollar erreicht, indem es einen robusten organischen Cashflow und Erlöse aus Veräußerungen genutzt hat. Ein öffentlicher Verkauf von Occidental-Aktien in Western Midstream Partners, LP brachte 700 Millionen US-Dollar, was den Gesamtbetrag der 2024 bisher geschlossenen oder angekündigten Veräußerungen auf etwa 1,7 Milliarden US-Dollar erhöht.
Nach dem erwarteten Abschluss der Veräußering von Barilla Draw im Delaware Basin Ende des Q3 rechnet Occidental mit einer Gesamtreduktion von über 3,8 Milliarden US-Dollar an Hauptverbindlichkeiten für das laufende Jahr. Dies entspricht fast 85 % ihres kurzfristigen Ziels von 4,5 Milliarden US-Dollar an Schuldenreduzierung. Das Unternehmen plant, seine Entschuldung weiterhin durch freien Cashflow und fortlaufende Veräußerungen voranzutreiben.
- $3 billion in principal debt reduction achieved in Q3 2024
- $700 million raised from public offering of Western Midstream Partners units
- Total of $1.7 billion in closed or announced divestments year-to-date
- Expected total year-to-date debt reduction of over $3.8 billion after Barilla Draw divestiture
- Nearly 85% of $4.5 billion debt reduction commitment to be achieved by end of Q3
- Continued need for debt reduction and asset sales
Insights
Occidental's debt reduction progress is impressive, with
The company's ability to leverage robust cash flows alongside divestiture proceeds for debt reduction is a positive indicator for financial health. With
Occidental's strategic moves are likely to be well-received by investors. The company's proactive approach to debt reduction and portfolio optimization demonstrates strong management execution. The accelerated timeline for achieving debt reduction goals could boost investor confidence and potentially lead to a re-rating of the stock.
The divestiture of non-core assets, particularly in the midstream sector, aligns with industry trends of focusing on core competencies. This streamlining could improve operational efficiency and returns on capital. The market may also view the company's ability to execute significant transactions in the current economic environment as a sign of asset quality and management capability.
Occidental's strategy reflects a broader industry shift towards financial prudence and portfolio optimization. The company's focus on debt reduction while maintaining operational cash flow is important in the volatile oil and gas sector. The divestiture of Delaware Basin assets, a prime shale region, suggests a high-grading of the portfolio, potentially improving overall returns on capital employed.
The retention of a significant stake in Western Midstream Partners post-sale indicates a balanced approach to maintaining midstream exposure while unlocking value. This move could provide flexibility for future growth initiatives or further debt reduction. Occidental's actions position it well for potential industry consolidation or to capitalize on market opportunities as they arise.
- Achieved
$3 billion in principal debt reduction in the third quarter of 2024 - Public offering of a portion of Occidental’s common units of Western Midstream Partners, LP, raised
$700 million , bringing total 2024 year-to-date closed or announced divestments to approximately$1.7 billion - Following close of the previously announced Delaware Basin Barilla Draw divestiture, which is expected late in the third quarter, Occidental expects a total year-to-date reduction of over
$3.8 billion in principal debt
HOUSTON, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) today announced it has achieved
“We are pleased with the rapid and significant progress of our deleveraging program along with enhancements made to our already premier portfolio. By the end of the third quarter, we expect to achieve nearly
Following closing of the Barilla Draw divestment, which is expected by the end of the third quarter, Occidental plans to apply the proceeds from the
Last week’s sale of 19.5 million common units representing limited partner interests in Western Midstream Partners, LP (NYSE: WES) raised
Occidental announced a commitment to achieve at least
About Occidental
Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information.
Forward-Looking Statements
This press release 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. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as “estimate,” “project,” “will,” “should,” “could,” “may,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “goal,” “target,” "commit," "advance," or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release unless an earlier date is specified. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.
Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Actual outcomes or results may differ from anticipated results, sometimes materially. Factors that could cause actual results to differ include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; Occidental’s indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Occidental’s ability to successfully monetize select assets and repay or refinance debt and the impact of changes in Occidental’s credit ratings or future increases in interest rates; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, Occidental’s products and services; actions by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of Occidental's proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Occidental's ability to timely obtain or maintain permits or other government approvals, including those necessary for drilling and/or development projects; Occidental's ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or divestitures, including the Barilla Draw divestment; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses; uncertainties about the estimated quantities of oil, natural gas liquids and natural gas reserves; lower-than-expected production from development projects or acquisitions; Occidental’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Occidental’s competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Occidental’s oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets, including capital market disruptions and instability of financial institutions; government actions, war (including the Russia-Ukraine war and conflicts in the Middle East) and political conditions and events; health, safety and environmental (HSE) risks, costs and liability under existing or future federal, regional, state, provincial, tribal, local and international HSE laws, regulations and litigation (including related to climate change or remedial actions or assessments); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, and deep-water and onshore drilling and permitting regulations; Occidental's ability to recognize intended benefits from its business strategies and initiatives, such as Occidental's low-carbon ventures businesses or announced greenhouse gas emissions reduction targets or net-zero goals; potential liability resulting from pending or future litigation, government investigations and other proceedings; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the scope and duration of global or regional health pandemics or epidemics, and actions taken by government authorities and other third parties in connection therewith; the creditworthiness and performance of Occidental's counterparties, including financial institutions, operating partners and other parties; failure of risk management; Occidental’s ability to retain and hire key personnel; supply, transportation, and labor constraints; reorganization or restructuring of Occidental’s operations; changes in state, federal or international tax rates; and actions by third parties that are beyond Occidental’s control.
Additional information concerning these and other factors that may cause Occidental’s results of operations and financial position to differ from expectations can be found in Occidental’s filings with the U.S. Securities and Exchange Commission, including Occidental’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Contacts
| Media | Investors |
| Eric Moses 713-497-2017 eric_moses@oxy.com | R. Jordan Tanner 713-552-8811 investors@oxy.com |
FAQ
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