Thread regarding Occidental Petroleum Corp. layoffs

Oxy to Cut Debt Before Boosting Oil Output

Here is the article from Reuters. Sorry for the cut and paste, but it is better than explaining it myself.

(Reuters) - Occidental Petroleum expects oil and gas output to dip in the second half of the year and will not boost production until it "significantly" reduces debt, Chief Executive Vicki Hollub said on Tuesday.

The company has been struggling with debt taken on during its $38 billion acquisition of Anadarko Petroleum last year, an ill-timed bet on oil prices rising.

The Anadarko purchase was intended to increase efficiency and profits by boosting oil and gas production. But Occidental's output will dip in the third and fourth quarters and it will end the year pumping about 1.2 million barrels of oil and gas per day, roughly 200,000 barrels per day less than the year prior.

The production outlook "does not inspire confidence in capital efficiency" or in the ability to "meet sustaining capital requirements next year," Mizuho Securities USA analyst Vincent Lovaglio said, adding that Occidental needs to finalize a major asset sale.

Occidental did not release 2021 spending plans, but said it would have to spend about $2.9 billion to keep production flat, based on oil prices at $40 per barrel.

It has about $4.5 billion in notes due next year and reported long-term debt of $36 billion on June 30. Warren Buffett's Berkshire Hathaway holds about $9.7 billion in Occidental preferred shares that pay a dividend of about 8%.

Occidental is restarting some activity in the Permian Basin and Gulf of Mexico, but its focus is to "ensure that we have the liquidity to go forward so we have the ability to meet our maturities," Hollub said on a call with analysts.

It no longer plans to sell Algerian assets it had once hoped to sell to France's Total to pay down debt, Hollub said, calling Algeria a "core asset." Algerian authorities had moved to block Total’s acquisition.

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| 6951 views | | 18 replies (last August 15, 2020) | Reply
Post ID: @OP+16orzQNK

18 replies (most recent on top)

As someone heavily involved in the hiring process, I can tell you that APC was 100% NOT discriminatory based on any sort of protected class.

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Post ID: @4bcz+16orzQNK

Why did Oxy start these “Grow with Oxy” and “We are Oxy” slogans. I suppose they are trying to appeal to the early career employees?

Same thing with the arm wrestling matches and the and the competition games outside at GW5. They need to bring back the days of the crawfish boils with beer served and just a casual experience without upper management trying so hard to bond with the masses.

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Post ID: @4gmj+16orzQNK

APC had questionable hiring practices and blatant age discrimination. They preferred hiring with regard to age as opposed to hiring for Talent.

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Post ID: @4jgg+16orzQNK

having worked with former oxy talent at another large e&p: toxic

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Post ID: @3bdk+16orzQNK

So maybe one’s ability to be recruited after Oxy has more to do with education, skill set, and background prior to working for Oxy. Generally people with major oil company experience prior to Oxy should have no trouble finding employment elsewhere during good times.

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Post ID: @3hdv+16orzQNK

Former Oxy here. I had a horrible experience at Oxy and had many issues getting recruited to other companies. Oxy is just as bad, or worse, than any other mid sized EP company. They've all got their problems, but none like Oxy's.

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Post ID: @3jdy+16orzQNK

Former Oxy here. I had a great experience at Oxy and never had any issues getting recruited to other companies. Oxy is just as good, or bad, as any other mid sized EP company. They've all got their problems.

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Post ID: @2ggx+16orzQNK

Oxy employees are well regarded in the industry?!?! What are you smokin? That's the funniest thing I've heard. That's like saying that Apache employees are well regarded in the industry (other than at Oxy). I've worked at many Oil & Gas companies in my career, and there are 2 things that are "known" about Oxy. Before last year's acquisition waves, we rarely hear about Oxy, because they're so tight lipped on communication (internally and externally). So 1 is that very little is known about Oxy, as they aren't having a big impact at conferences, in journals, in publications, on the market, etc. And 2 is that everyone knows they're the KMart of Oil and Gas, which prides itself on leveraging 20 year old cheap technology, paying low, and squeezing costs anywhere they can. Oxy's core values are low low cost and closed communication. Anadarko naturally wasn't perfect, and I know there were plenty of groups and people that had issues there, but it was one of the best places I've worked at, and the culture was more focused on excellence and open communication.

Someone's obviously manipulating the up and down votes on this particular board, but it doesn't change reality.

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Post ID: @2wzh+16orzQNK

Ethical point of view? Piper Alpha, Thunderball, Maynas Carjenas, Libyan corruption, Petrolia spill, gas line explosions at Elk Hills, persecution, harassment and bullying environment.

Why does this not surprise me that an Oxy person would consider that and more as 'ethical'. Its as if they are totally oblivious to what has been posted on here hundreds of time about Oxys 'ethics'.

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Post ID: @2yov+16orzQNK

The argument here, whether oxy employees are respected or despised, has no factual basis pro or against. It is all speculation and opinion and merely serves as a vehicle for someone to throw insults around. You know it's true.

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Post ID: @1mru+16orzQNK

Actually a COC was in place under the corporate agreements for a long time. You could go on the HR site and read the document. There was some sort of COC in place years before the actual Chevron or Oxy offers. Ask any of the long-time employees and they will tell you the same. We use to always talk about Shell and especially Exxon buying APC based on the documents. You could basically calculate the amount you would get.

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Post ID: @1mdq+16orzQNK

You are full of it. Hardly anyone even knew about the CoC until the CVX announcement. And then it was two weeks of review by before we actually knew exactly how it was going to pay out.

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Post ID: @1kkx+16orzQNK

I worked at Anadarko. It was a pig dressed up like a beauty queen. Under the flashy buildings, gyms, and all the other flashy things it was just an oil company with the same type people as other companies. They did not corner the market on having the smartest people in the industry, sure some where top notch, but not all. All many of the employees talked about when I was there was they could not wait to be bought out and cash in. I left because the pay was not what I could get somewhere else. They promised me a big raise the first time I was going to leave, so I stayed. Guess what? The raise was 20K less than what I could of got at the other company, so I called them up and they still had the job and I left. In my case HR and my manager lied to me, and they did it knowingly because they knew what the other company had offered. So Anadarko had bad folks and practices just like any other company, and I saw many respected people in the industry leave APC for the same reasons, and others. If you don't like Oxy then leave.

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Post ID: @1utf+16orzQNK

I think he meant LAPC are well respected in the industry.

LOxy people are usually known as the leftovers as its referred to as sloppy seconds.

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Post ID: @1idc+16orzQNK

https://www.reuters.com/article/us-occidental-results/occidental-petroleum-to-reduce-debt-before-boosting-oil-output-ceo-hollub-idUSKCN257247

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Post ID: @1zji+16orzQNK

Said the same about ex-Enron employees and most of them found great jobs because people knew Enron hired a lot of intelligent people...just some corrupt ones at the higher levels.

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Post ID: @1hmf+16orzQNK

Oxy employees are very well regarded in the industry from a technical and ethical point of view. You are very misinformed. Shame on you.

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Post ID: @phk+16orzQNK

All looking good. Just so you know, nobody out there is going to take Oxy employees before all the others available when hiring. People know how bigoted and lacking in ethics you people are.

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Post ID: @lxe+16orzQNK

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