Occidental Petroleum Corp. introduced Tuesday two agreements to divest a number of United States property within the Permian Basin and the Rocky Mountains to undisclosed patrons for a mixed value of $1.2 billion as a part of its debt administration plan.
The sale, anticipated to shut this quarter, includes stakes not included within the Houston, Texas-based firm’s near-term growth plan, Occidental mentioned in a web based assertion.
“The ensuing proceeds might be utilized to the corporate’s remaining 2025 debt maturities”, the hydrocarbon and chemical producer mentioned.
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Billionaire Warren Buffett-backed Occidental mentioned it had achieved its near-term debt compensation purpose of $4.5 billion within the fourth quarter of 2024.
Occidental launched a $4.5 billion-$6 billion divestiture program when it introduced its merger with CrownRock LP late 2023. It introduced the completion of the $12.4 billion buy August 1, 2024.
“We had been happy to succeed in the near-term deleveraging milestone within the fourth quarter of 2024, inside 5 months of closing the CrownRock acquisition, and 7 months forward of our purpose”, commented president and chief govt Vicki Hollub.
“The transactions introduced right this moment proceed to high-grade our portfolio and speed up the progress towards attaining each our medium-term stability sheet deleveraging goal and shareholder return pathway”.
The corporate mentioned, “Occidental will proceed to advance deleveraging through free money circulate and divestitures”.
It owed $1.14 billion in present maturities from long-term debt as of the top of 2024. Occidental accrued complete present liabilities of $9.52 billion, in keeping with annual outcomes it filed with the Securities and Alternate Fee Tuesday.
It ended the yr with $2.13 billion in money and money equivalents, whereas its complete present property stood at $9.07 billion.
Occidental logged a web lack of $297 million, or $0.32 per share, and adjusted revenue of $792 million, or $0.8 per share, for the fourth quarter of 2024. The adjustment was associated to a brand new environmental legal responsibility that Occidental is contesting in courtroom, in keeping with a quarterly assertion launched individually Tuesday.
The adjusted determine beat the Zacks Consensus Estimate of $0.67. Occidental shares closed increased at $48.84 on the New York Inventory Alternate on outcomes day.
Oil and gasoline pre-tax revenue was $1.2 billion. Occidental produced 1.46 million barrels of oil equal a day (boed) within the October-December interval, exceeding the midpoint of steering by 13,000 boed because of home property together with the Permian and the Rockies.
It raised its confirmed and possible reserves to 4.6 billion boe as of year-end 2024, up from 4 billion boe at year-end 2023 primarily because of the CrownRock acquisition.
Occidental’s chemical compounds section logged a $270 million pre-tax revenue. Midstream and advertising and marketing suffered a $134 million loss.
“Fourth quarter of 2024 after-tax gadgets affecting comparability of $1.1 billion primarily comprised of reserving a long-term environmental legal responsibility enhance based mostly on a latest federal courtroom ruling”, Occidental mentioned. “Occidental has appealed the ruling and can search value restoration from all probably accountable events.
“It’s anticipated that the money outlay for remediation prices might be expended over 10 to twenty years, or extra”.
Occidental registered $3.6 billion in working money circulate – $3.1 billion earlier than working capital.
It elevated its quarterly dividend by 9 % to $0.24 per share.
Earlier this month Buffett’s Berkshire Hathaway Inc. elevated its possession in Occidental to about 28 %.
To contact the creator, electronic mail jov.onsat@rigzone.com
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