Source : Investing Posted Monday 19/08/2024, 15:18
HOUSTON – Occidental Corporation (NYSE: OXY) has made great strides in its debt reduction efforts, announcing today that it had cut its principal debt by $3 billion in the third quarter of 2024. The company’s strong cash flow and strategic liquidations have driven the company toward nearly 85% of its $4.5 billion debt reduction target.
The recent public offering of regular units in Western Midstream Partners, LP (NYSE: WES) grossed $700 million last week. This is part of Occidental’s broader divestment plan, which raised nearly US$1.7 billion in closed or announced sales this year. The company expects further debt reductions after the expected closure of Barilla Drew in the Delaware Basin, scheduled for late in the third quarter. It will contribute the deal, worth $818 million, reduced total year-to-date debt by more than $3.8 billion.
Occidental President and CEO Vicky Hollub said the company’s financial measures were strengthening its balance sheet and accelerating the return of value to shareholders. The energy company remains committed to its debt reduction program, with plans to continue to apply the proceeds of its divestment and free cash flow program towards debt reduction.
The company had previously committed to reducing debt by at least US$4.5 billion within a year following the acquisition of Crown Rock, an initiative that appears to be on track with current progress.
Occidental is a major international energy company with operations primarily in the United States and the Middle East and North Africa. It is one of the largest oil and gas producers in the United States, with significant production in the Permian and DJ basins, as well as in the offshore areas of the Gulf of Mexico. The company’s Middle Production and Marketing segment ensures the flow and value of oil and gas, while its chemical subsidiary, Oxychem, produces the building blocks for various products. In addition, Occidental Low-Carbon Enterprise focuses on developing technologies and solutions that contribute to business growth and emissions reduction.
This announcement is based on a press release and includes forward-looking statements subject to risk, uncertainties and assumptions. Actual results may differ materially from those expected due to various factors, including economic conditions, market volatility and operational risks. For more detailed information, refer to Occidental filings with the U.S. Securities and Exchange Commission.
In other recent news, Occidental Petroleum (NYSE:OXY) Corporation reported a strong performance in its second quarter 2024 earnings call. The company offered its highest quarterly production in four years, generating $1.3 billion in free cash flow before working capital changes. In addition, Occidental announced progress on its strategic liquidation program, including the consolidation of assets from Crown Rock that is expected to lead to increased operational efficiencies and assets .Walid value.In an important development, CrownRock Holdings, L.P. To sell 29,560,619 shares of Occidental ordinary shares through a subscribed secondary public offering. Occidental Corp. itself will not sell any shares in this transaction, and all proceeds from the sale will go to Crown Rock Holdings. Financial institutions J.P. Morgan, Morgan Stanley and RBC Capital Markets will manage the share sale. In related news, Western Midstream Partners has started a secondary public offering of 19 million ordinary units, managed by Barclays, and Occidental has halted its planned exchange offer for some initial bonds issued by CrownRock L.P. and CrownRock Finance, Inc. In addition, Occidental agreed to sell part of its assets in the Delaware Basin to Permian Resources for about $818 million. These are among the recent developments that have impacted the company.
