The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: Elderberry on November 05, 2019, 10:18:49 pm
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Houston Chronicle by Jordan Blum Nov. 5, 2019
Occidental Petroleum said it would dramatically slash its spending by nearly 40 percent next year after reporting a nearly $1 billion quarterly loss in the aftermath of its $38 billion acquisition of Anadarko Petroleum.
Houston-based Oxy said it estimates $5.4 billion in capital spending next year after the combined Oxy-Anadarko will spend an estimated $8.6 billion this year. The megadeal to absorb The Woodlands-based Anadarko and its crown jewel Permian Basin acreage closed in the middle of the third quarter on Aug. 8.
Oxy on its own had planned to spend just less than $5 billion this year before the Anadarko deal, but the cutbacks are still much larger than anticipated. The biggest cost-cutting is coming in the Permian as Oxy combines their operations in West Texas. But Oxy will remain the Permian's largest producer and arguably the second-most-active driller after Exxon Mobil.
More: https://www.houstonchronicle.com/business/energy/article/Occidental-vows-to-slash-spending-after-Anadarko-14810018.php (https://www.houstonchronicle.com/business/energy/article/Occidental-vows-to-slash-spending-after-Anadarko-14810018.php)
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If it slashes dividend, it just might be toast