Occidental Announces Further Progress on Debt Reduction
Occidental (NYSE: OXY) has achieved its near-term debt repayment target of $4.5 billion in Q4 2024, five months after the CrownRock acquisition and seven months ahead of schedule. The company has also signed two agreements in Q1 2025 to divest upstream assets for $1.2 billion, including Rockies non-operated assets and Permian Basin assets not in their near-term development plan.
The proceeds from these divestitures, expected to close in Q1 2025, will be applied to the company's remaining 2025 debt maturities. The company plans to continue its deleveraging efforts through free cash flow and additional divestitures.
Occidental (NYSE: OXY) ha raggiunto il suo obiettivo di rimborso del debito a breve termine di 4,5 miliardi di dollari nel quarto trimestre del 2024, cinque mesi dopo l'acquisizione di CrownRock e sette mesi prima del previsto. L'azienda ha anche firmato due accordi nel primo trimestre del 2025 per cedere attivi upstream per un valore di 1,2 miliardi di dollari, inclusi gli attivi non operativi delle Rockies e quelli del Bacino Permiano che non fanno parte del loro piano di sviluppo a breve termine.
Il ricavato da queste cessioni, previsto per chiudere nel primo trimestre del 2025, sarà utilizzato per le scadenze di debito rimanenti dell'azienda nel 2025. L'azienda prevede di continuare i suoi sforzi di riduzione del debito attraverso il flusso di cassa libero e ulteriori cessioni.
Occidental (NYSE: OXY) ha logrado su objetivo de reembolso de deuda a corto plazo de 4.5 mil millones de dólares en el cuarto trimestre de 2024, cinco meses después de la adquisición de CrownRock y siete meses antes de lo previsto. La compañía también ha firmado dos acuerdos en el primer trimestre de 2025 para desinvertir activos upstream por un total de 1.2 mil millones de dólares, incluyendo activos no operativos en las Rockies y activos en la Cuenca Pérmica que no están en su plan de desarrollo a corto plazo.
Los ingresos de estas desinversiones, que se espera cierren en el primer trimestre de 2025, se aplicarán a los vencimientos de deuda restantes de la compañía en 2025. La empresa planea continuar sus esfuerzos de desapalancamiento a través del flujo de caja libre y desinversiones adicionales.
옥시덴탈(뉴욕증권거래소: OXY)은 2024년 4분기까지 45억 달러의 단기 채무 상환 목표를 달성했으며, 이는 CrownRock 인수 후 5개월, 예정된 일정보다 7개월 빠른 것입니다. 회사는 또한 2025년 1분기에 12억 달러에 해당하는 업스트림 자산을 매각하기 위한 두 건의 계약을 체결했습니다. 여기에는 록키산 비운영 자산과 단기 개발 계획에 포함되지 않은 퍼미안 분지 자산이 포함됩니다.
이러한 매각에서 발생하는 수익은 2025년 회사의 남은 채무 만기에 적용될 예정입니다. 회사는 자유 현금 흐름과 추가 매각을 통해 부채 축소 노력을 계속할 계획입니다.
Occidental (NYSE: OXY) a atteint son objectif de remboursement de la dette à court terme de 4,5 milliards de dollars au quatrième trimestre 2024, cinq mois après l'acquisition de CrownRock et sept mois avant la date prévue. L'entreprise a également signé deux accords au premier trimestre 2025 pour céder des actifs en amont pour un montant de 1,2 milliard de dollars, y compris des actifs non exploités dans les Rocheuses et des actifs du bassin permien qui ne figurent pas dans leur plan de développement à court terme.
Les produits de ces cessions, qui devraient être finalisées au premier trimestre 2025, seront appliqués aux échéances de dette restantes de l'entreprise en 2025. L'entreprise prévoit de poursuivre ses efforts de désendettement par le biais de flux de trésorerie libre et d'autres cessions.
Occidental (NYSE: OXY) hat sein kurzfristiges Ziel zur Rückzahlung von Schulden in Höhe von 4,5 Milliarden Dollar im vierten Quartal 2024 erreicht, fünf Monate nach der Übernahme von CrownRock und sieben Monate vor dem Zeitplan. Das Unternehmen hat außerdem im ersten Quartal 2025 zwei Vereinbarungen unterzeichnet, um upstream Vermögenswerte im Wert von 1,2 Milliarden Dollar abzustoßen, einschließlich nicht betriebener Vermögenswerte in den Rockies und Vermögenswerte im Permian-Becken, die nicht in ihrem kurzfristigen Entwicklungsplan enthalten sind.
Die Erlöse aus diesen Abstößen, die voraussichtlich im ersten Quartal 2025 abgeschlossen werden, werden auf die verbleibenden Schuldenfälligkeiten des Unternehmens im Jahr 2025 angewendet. Das Unternehmen plant, seine Schuldenreduzierung durch freien Cashflow und zusätzliche Abstoße weiterzuführen.
- Achieved $4.5 billion debt repayment target 7 months ahead of schedule
- Secured $1.2 billion from asset divestitures to address 2025 debt maturities
- Successfully executing deleveraging strategy post-CrownRock acquisition
- Divesting revenue-generating assets to pay down debt
- Reduction in Permian Basin presence through asset sales
Insights
Occidental's successful execution of its deleveraging strategy marks a significant milestone in its financial transformation. The achievement of the
The strategic divestiture of
The timing and execution of these moves are particularly noteworthy. Completing major debt reduction within five months of the CrownRock acquisition demonstrates strong operational integration and financial management capabilities. The company's ability to identify and execute value-accretive divestitures in the current market environment indicates robust asset quality and effective transaction execution.
This accelerated deleveraging trajectory has multiple positive implications. First, it should lead to improved credit metrics and potentially lower borrowing costs, creating a virtuous cycle of financial improvement. Second, the faster-than-expected progress toward balance sheet objectives positions Occidental to potentially accelerate its shareholder return initiatives. Third, the enhanced financial flexibility provides a stronger buffer against commodity price volatility, reducing risk and improving the company's competitive position in the energy sector.
- Achieved near-term debt repayment target of
$4.5 billion in the fourth quarter of 2024 - Announced proceeds from
$1.2 billion of divestitures signed in the first quarter of 2025 will go toward current year debt maturities
HOUSTON, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) today announced it achieved its near-term debt repayment target of
The divestiture transactions, which are expected to close in the first quarter of 2025, include Rockies non-operated assets and Permian Basin assets not included in Occidental’s near-term development plan. The resulting proceeds will be applied to the company’s remaining 2025 debt maturities.
“We were pleased to reach the near-term deleveraging milestone in the fourth quarter of 2024, within five months of closing the CrownRock acquisition, and seven months ahead of our goal,” said President and CEO Vicki Hollub. “The transactions announced today continue to high grade our portfolio and accelerate the progress toward achieving both our medium-term balance sheet deleveraging target and shareholder return pathway.”
Occidental will continue to advance deleveraging via free cash flow and divestitures.
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 America. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas, and includes our Oxy Low Carbon Ventures subsidiary, which is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. We are dedicated 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,” “expect,” “goal,” “target,” "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 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; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections or 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, NGL 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 (including geopolitical, trade, tariff and regulatory uncertainties), 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 GHG 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, 2024, 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
How much debt did OXY repay in Q4 2024?
What assets is OXY divesting in Q1 2025?
How will OXY use the $1.2 billion divestiture proceeds?
How far ahead of schedule did OXY reach its debt repayment target?
What is OXY's strategy for future debt reduction?
