Occidental quarterly profit fell short of forecasts due in part to the $37 billion acquisition of Anadarko Petroleum Corp. Shale drilling in the Permian Basin will account for the biggest chunk of the cuts. The combined Occidental-Anadarko entity will spend about $5.4 billion next year, down from the pro forma $9 billion the companies would have spent, according to the presentation. Expenditures in Occidental’s premier theater of operations, the Permian Basin, will drop by half to $2.2 billion.
The steep budget cut came after third-quarter earnings fell well short of forecasts. Per-share profit, excluding some one-time items, was 11 cents, compared with the 38-cent average of 24 analysts’ estimates. Among the contributing factors cited by Occidental were takeover costs, asset writedowns and proceeds from a pipeline sale.
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VH put tremendous faith in ex-Apache “mafia” as well as ex-Goldman Sachs and ex-BofA Finance “gurus.” No real subsurface review was done of the “merger.”
That’s what you get when only accountants are involved.
Big Gulp!
Oxy 3Q investor slides deck outlines $385MM saving in employee/contractor, as of 3Q 2019 $24MM realized. So as per APC 10K medium total compensation for the company is $187K, Oxy medium $127K, this works out to between 2000 to 3000 employee/contractors. Indeed more COC or VSP coming in 2020.
Hollub and her crew have wrecked a good company. As a shareholder watching all of this I can say without a doubt she should be fired and sued by the shareholders for her salary. She and her board are a disgrace!
It might look bad at first, but when you look back on this a year to eighteen months from now things are going to look good for Oxy in my opinion. It takes a while to pull all these things together and Chevron would of taken that long as well. Only time will tell and I hope all the VSP folks find other jobs or get to retire. For those who just don’t want to come we will see if that was the right decision over keeping a job with benefits. In the end we all are vested in Oxy whether waiting on a big check, or staying here to work. Good luck to all.
Occidental reported a loss of $916 million for 3rd quarter, almost all related to acquisition of Anadarko, in addition to $325 million write down on acreage in the Permian that is no longer considered viable for drilling. But the dividend is still holding up at over 7%.
Occidental Petroleum stated on Tuesday that oil and gas production would grow by 2% next year missing the target growth of 5% for the combined company. Oh well.
Hi...my name is corky buffet...me and Grandpa Warren would like to thank ms vicky for that generous 8% interest payment......shoot, Papa Charlie says we were only getting 2% on our money before that.....he gives out a cornhusker war whoop ever time he gits that interest payment.....well gotta go know ...Granpa is taking me to Hawaii thanx to that big fat check
Layoffs to come for all !!!
Without investment will be interesting to see the plans for oil production levels. Cutting for pipeline and midstream, drilling, all of the above?
This is after an almost 10% stock price gain over the last few days. Might be giving a lot of that back tomorrow.
Loving it.