Occidental Petroleum Jumps into Acquisition Mode
Occidental Petroleum said on Monday it would buy energy producer CrownRock in a cash-and-stock deal valued at $12 billion including debt, expanding in the lucrative Permian basin.Investors are pressing oil and gas producers to expand their inventories following Exxon Mobil's $60 billion deal for Pioneer Natural Resources and Chevron's $53 billion agreement for Hess in October.Occidental will finance the purchase of privately-held oil and gas producer CrownRock with $9.1 billion of new debt…
Occidental Posts $2.2B Loss, Deepens Spending Cuts
Occidental Petroleum Corp on Tuesday swung to a first-quarter loss on writedowns and charges, and the troubled U.S. oil producer cut its budget for the third time since March in response to a historic oil-price crash.The company has been struggling with debt taken on in last year's $38 billion acquisition of Anadarko Petroleum, an ill-timed bet on rising shale oil prices ahead of a market dive.Global energy demand has tumbled amid coronavirus-related travel and business restrictions and a glut of oil from a price war. U.S.
Upstream Sector Leads O&A M&A in 2019
A latest research revealed that the upstream sector accounted for the bulk of mergers and acquisitions (M&A) in the global oil and gas industry in 2019, generating some high-value transactions during the process.According to GlobalData's theme report, ‘M&A in Oil and Gas – 2020’, the acquisition of Anadarko Petroleum by Occidental Petroleum in April 2019 for a purchase consideration of US$57bn was the highlight of oil and gas M&A activity last year, says GlobalData, a leading data and analytics company.Ravindra Puranik…
Oxy Slashing Jobs 'Significantly'
Occidental Petroleum Corp said on Wednesday it would begin dismissing workers in a new cost-cutting move following its $38 billion acquisition of Anadarko Petroleum.The company has already "significantly" cut staff through a voluntary program, spokeswoman Melissa Schoeb said in an email. She did not respond to requests for information about the number of employees to be cut or any potential charge to earnings.The combined company had about 16,000 workers when it merged.Occidental has been selling assets and cutting costs since it outbid Chevron Corp last year for Anadarko…
Icahn Sells Nearly a Third of His Oxy Stake
Activist investor Carl Icahn, who has been waging a bitter battle against Occidental Petroleum Corp's board over its $38 billion acquisition of Anadarko Petroleum, cut his holdings in the oil and gas producer by nearly a third, according to an open letter to shareholders released on Friday.Icahn has opposed the deal as "hugely overpriced" and a misplaced bet-the-company gamble on oil prices rising, and urged Occidental's board to instead put the company on the market.Icahn sold 10 million shares and now holds 23 million shares, valued around $900 million, he said.
Mozambique Eyes $880 Mln in Tax from Anadarko Takeover
Mozambique is targeting $880 million in capital gains tax from the takeover of Anadarko Petroleum by Occidental Petroleum, local newspaper O Pais reported on Friday.Anadarko led a liquefied natural gas project in the southern African country, but it was replaced by Total after the French oil major agreed to buy Anadarko's African assets as part of the Occidental takeover.President Filipe Nyusi announced the capital gains tax target after he met Occidental and Total managers in the city of Chimoio, O Pais reported.Mozambique's economy has been hobbled in recent years by a hidden debts scandal, which
Exxon, Chevron See Consolidation in Top U.S. Shale Field
The two largest U.S. oil and gas companies on Tuesday left the door open for more acquisitions in the country's top shale field.Exxon Mobil Corp expects to see industry consolidation to happen "over some period of time," in the Permian Basin in west Texas and New Mexico, Chief Executive Darren Woods told investors at a Barclays energy conference in New York.If Exxon sees an opportunity it has the balance sheet to "be in a position to transact on that," Woods said, but he added that "time's on our side."Chevron Corp also will take an "opportunistic" approach in the basin…
Oxy CFO Pledges to Quickly Pare Acquisition Debt
Occidental Petroleum Corp expects to quickly reduce the $40 billion in debt it took on with its purchase of Anadarko Petroleum, the company's finance chief said on Monday.Cedric Burgher, in his first public remarks since the $38 billion acquisition closed last week, told an EnerCom energy conference audience, the resulting debt burden was "not too bad," and pledged Occidental would be selective in choosing assets to sell.He defended the purchase, which has been attacked by activist Carl Icahn as "misguided and hugely overpriced," as providing future oil production as a good valuation.
Anadarko Shareholders Go for Cash in Oxy Buyout
Shareholders of Anadarko Petroleum Corp on Thursday voted overwhelmingly to sell the company for $38 billion to rival Occidental Petroleum Corp, ending a short-lived contest that pitted two of the most storied names in the oil industry against one another.Occidental in May beat out Chevron Corp to grab a major oil industry prize: Anadarko's nearly quarter million acres in the Permian Basin, the top U.S. shale field, where low-cost output has helped turn the United States into the…
Chevron Profit Surges 26%
Chevron Corp reported a 26.3% jump in quarterly profit on Friday, as higher oil and gas production and a one-time breakup fee from its failed bid for a rival more than offset lower energy prices and a rise in expenses.Results benefited from a $1 billion fee it received after Occidental Petroleum wrecked its $33 billion deal to buy Anadarko Petroleum with a winning $38 billion bid. The termination fee added $720 million to the quarter's profit, Chevron said.Its U.S. shale production rose 21% during the quarter, but was overshadowed by sharply weaker oil and gas prices.
Global LNG Demand 16% Up in Q2
Global liquefied natural gas (LNG) demand was 86 million tonnes (mt) in the second quarter, compared with 74 mt in the second quarter of 2018, an increase of 16%, said GasLog Ltd.The Monaco-headquartered international owner, operator and manager of liquefied LNG carriers said that higher European imports (up 110% year-on-year) accounted for most of the growth, while demand from Northeast Asia (Japan, China, South Korea and Taiwan) was flat year-on-year, according to Poten.Natural…
Oxy Q2 Earnings Dip
Occidental Petroleum Corp , which is battling activist investor Carl Icahn over its $38 billion purchase of Anadarko Petroleum, reported a 14% drop in quarterly profit on Wednesday, as costs related to the deal and weaker chemical earnings hit its bottom line.Still, the results topped Wall Street estimates for the period and Occidental's operating cash flow rebounded from last quarter to $2.96 billion, up 7% from the same quarter a year ago. Investors closely watch operating cash…
Anadarko Beats Profit Estimates
Anadarko Petroleum Corp, in its last earnings report before shareholders vote on its sale to Occidental Petroleum, on Friday reported a quarterly profit that topped analysts' estimates, as higher production offset lower prices for its oil.It reported a net loss on a $1 billion breakup fee paid to Chevron Corp. Anadarko accepted a $38 billion offer from Occidental after having initially agreed to a deal with Chevron. The deal would make Occidental the largest oil producer in the Permian Basin, the top U.S.
Anadarko Shareholders to Vote on Oxy Deal
Anadarko Petroleum Corp shareholders will vote Aug. 8 on the oil and gas producer's planned $38 billion sale to Occidental Petroleum Corp - the biggest oil and gas deal of the year.Occidental avoided its own shareholder vote on the deal by securing a controversial $10 billion financing agreement with Warren Buffett's Berkshire Hathaway, which allowed it to raise the cash portion of its offer.While an Anadarko holders' vote for the proposed deal is very likely, the price has angered several Occidental investors…
Icahn Steps up Fight with Occidental
Billionaire investor Carl Icahn on Wednesday ratcheted up his fight with Occidental Petroleum over its pending purchase of rival Anadarko Petroleum by calling for a special shareholder meeting where he hopes to win board seats.In a regulatory filing, Icahn said he planned to oust and replace four Occidental directors and change the company's charter through a stockholder consent solicitation to prevent it from ever engineering a similar takeover again.Responding to the filing, Occidental said it will review the latest materials filed by Icahn…
Anadarko Approves $20 Bln Mozambique LNG Project
U.S. energy firm Anadarko Petroleum Corp gave the go-ahead on Tuesday for the construction of a $20 billion gas liquefaction and export terminal in Mozambique, the largest single LNG project approved in Africa, according to the government of Mozambique and energy consultancy Wood Mackenzie.The announcement, which occurred at an event in Mozambique, was widely expected after Anadarko last month flagged the decision date. Officials at Anadarko were not immediately available for comment.The project…
EPC Contract Awarded for Mozambique LNG
A joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development, McDermott International announced on Wednesday.CCS JV’s project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure.
US FTC Approves Oxy's Bid for Anadarko
Oil and gas producer Occidental Petroleum Corp said on Tuesday the U.S. Federal Trade Commission has granted approval for its proposed $38 billion deal to buy Anadarko Petroleum Corp.The waiting period required for companies under the Hart-Scott-Rodino Antitrust Improvements Act was terminated early by the FTC, the company said.The deal is expected to close in the second half of 2019.(Reporting by Debroop Roy in Bengaluru; Editing by Shailesh Kuber)
Icahn Sues Oxy Over 'Misguided' Anadarko Deal
Occidental Petroleum Corp 's activist investor Carl Icahn has filed a lawsuit against the company over what it called its "misguided" pact to buy Anadarko Petroleum Corp, and may seek a special meeting to remove and replace board members.The lawsuit, filed on Thursday in Delaware by a group of Icahn companies, calls Occidental's recent agreement to purchase Anadarko for $38 billion "fundamentally misguided and hugely overpriced," and says "management wanted to avoid a vote at almost all costs."Icahn…
Oxy Plans to Sell Parts of Anadarko
Occidental Petroleum snatched up some of the richest shale oilfields in Texas when it beat out rival Chevron Corp in a bidding war to acquire Anadarko Petroleum.It also quadrupled its debt - to $40 billion - at a time when investors are calling for spending cuts and higher dividends.That means the acquisition's success will depend on how quickly Occidental can sell off some of Anadarko's assets and focus on optimizing and integrating the assets it keeps - especially prime U.S. shale fields.Shedding debt will require selling assets when deals have been sluggish, said bankers and merger specialists.
