Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Occidental Petroleum Corporation    OXY

OCCIDENTAL PETROLEUM CORPORATION

(OXY)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Occidental Reaches Agreement With Icahn -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
03/26/2020 | 01:48am EDT

By Rebecca Elliott and Ryan Dezember

Occidental Petroleum Corp., the largest oil producer in the giant Permian Basin, has ceded to activist investor Carl Icahn's demands and announced deep spending cuts in a bid to survive the steepest crude-price plunge in decades.

The truce with Mr. Icahn, unveiled Wednesday, is the culmination of a monthslong battle that began last year after Occidental outbid Chevron Corp. for Anadarko Petroleum Corp.

Two of Mr. Icahn's deputies, Andrew Langham and Nicholas Graziano, will receive Occidental board seats under the agreement. Herbalife Nutrition Ltd. board member Margarita Paláu-Hernández will join as an independent director.

Occidental's board will also create a new board oversight committee that must be informed of any offers to acquire the company or its assets. Both of Mr. Icahn's deputies will serve on the new board.

Occidental also installed its former chief executive Stephen Chazen as chairman.

Meanwhile, the company is cutting salaries for its U.S. employees by up to 30% to slash expenses, according to an internal email reviewed by The Wall Street Journal. On Wednesday morning, it said it would cut its 2020 capital spending budget by about $800 million, on top of a previously announced $1.7 billion cut. Reductions in operating and overhead spending are expected to total about $600 million, the company said Wednesday. The company said these steps would reduce its oil and natural gas output in 2020 by 6%.

The Houston company is facing plunging oil prices, high debt from an ill-timed $38 billion Anadarko acquisition and falling demand due to a halt in economic activity because of t he coronavirus.

Chief Executive Vicki Hollub, who presided over the Anadarko deal last year, is expected to keep her job -- albeit at a much lower salary. Ms. Hollub's salary will be slashed by 81% and the oil-and-chemical company's top executives' pay will be cut by an average of 68%, according to the email.

Ms. Hollub earned compensation valued at $14.1 million in 2018, according to the company's most recent annual proxy statement, mostly in stock.

Employee bonuses and perks, such as gym memberships and commuter subsidies, are set to end in April.

The company said the drastic steps were necessary to weather the steep decline in oil prices. The benchmark U.S. oil price is down 61% since the start of the year, closing at $24.01 a barrel on Tuesday.

"The coronavirus pandemic has led to an unprecedented decline in demand for oil on a global basis," the email said. "On top of that, the price war between Saudi Arabia and Russia has further exacerbated the situation. We must take immediate and unprecedented actions for our company."

Occidental released a statement confirming it was taking steps to "ensure the health of the company while protecting jobs."

Earlier this month, it cut its dividend 86% and made an initial round of capital spending trims.

The entire U.S. oil industry has been badly battered in recent weeks, and Occidental has been among the hardest hit.

Dozens of U.S. shale companies also have slashed spending. Chevron and Royal Dutch Shell PLC cut their capital budgets and suspended share buybacks, but neither took the step of across-the-board salary cuts.

Occidental's market capitalization has since plunged below $10 billion, from more than $46 billion at the time of the Anadarko offer.

The company had staved off Mr. Icahn for months, but had to give up significant ground as oil prices plunged below $25 a barrel.

Write to Rebecca Elliott at rebecca.elliott@wsj.com and Ryan Dezember at ryan.dezember@wsj.com

 

Stocks mentioned in the article
ChangeLast1st jan.
CHEVRON CORPORATION 0.64% 93.9 Delayed Quote.-22.08%
HERBALIFE NUTRITION LTD. 5.22% 44.72 Delayed Quote.-6.19%
NEXT 1.39% 4891 Delayed Quote.-30.31%
OCCIDENTAL PETROLEUM CORPORATION 0.14% 14.42 Delayed Quote.-65.06%
WTI 0.54% 31.913 Delayed Quote.-44.75%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on OCCIDENTAL PETROLEUM CORPO
04:22pEXCLUSIVE : Chevron to cut up to 15% of staff amid restructuring
RE
04:07pEXCLUSIVE : Chevron to cut up to 15% of staff amid restructuring
RE
05/21OCCIDENTAL PETROLEUM CORP /DE/ : Entry into a Material Definitive Agreement, Reg..
AQ
05/18Occidental Issues Statement Regarding Agreement With Total
GL
05/18Total Discontinues the Acquisition of Occidental Petroleum's Assets in Ghana
DJ
05/18Total Discontinues Acquisition of Occidental Petroleum's Assets in Ghana
DJ
05/16Blackstone shale oil venture Gavilan Resources files for bankruptcy
RE
05/07OCCIDENTAL PETROLEUM : to Announce First Quarter Results Tuesday, May 5, 2020; H..
PU
05/07OCCIDENTAL PETROLEUM : Announces 1st Quarter 2020 Results
PU
05/07OCCIDENTAL PETROLEUM : ​​​​​1st Quarter 2020 Confe..
PU
More news
Financials (USD)
Sales 2020 18 990 M
EBIT 2020 -2 176 M
Net income 2020 -4 974 M
Debt 2020 35 277 M
Yield 2020 10,8%
P/E ratio 2020 -2,54x
P/E ratio 2021 -6,85x
EV / Sales2020 2,54x
EV / Sales2021 2,57x
Capitalization 12 978 M
Chart OCCIDENTAL PETROLEUM CORPO
Duration : Period :
Occidental Petroleum Corpo Technical Analysis Chart | OXY | US6745991058 | MarketScreener
Technical analysis trends OCCIDENTAL PETROLEUM CORPO
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 25
Average target price 13,93 $
Last Close Price 14,42 $
Spread / Highest target 73,4%
Spread / Average Target -3,39%
Spread / Lowest Target -65,3%
EPS Revisions
Managers
NameTitle
Vicki A. Hollub President, Chief Executive Officer & Director
Stephen I. Chazen Chairman
Robert Lee Peterson Chief Financial Officer & Senior Vice President
E. Spencer Abraham Independent Director
Avedick Baruyr Poladian Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
OCCIDENTAL PETROLEUM CORPORATION-65.06%12 960
CNOOC LIMITED-31.33%50 907
CONOCOPHILLIPS-32.85%46 833
EOG RESOURCES, INC.-38.59%29 940
CANADIAN NATURAL RESOURCES LIMITED-39.95%21 469
PIONEER NATURAL RESOURCES COMPANY-38.09%15 451