February 13, 2014 04:01 PM Eastern Daylight Time
Occidental Petroleum Announces Sale of Hugoton
Field Assets As Part of Company’s Strategic Review
LOS ANGELES--(BUSINESS WIRE)--Occidental
Petroleum Corporation (NYSE:OXY) today announced that it has reached
a definitive agreement to sell its Hugoton Field assets to an
undisclosed buyer for pre-tax proceeds of $1.4 billion. This sale was
approved by the Board of Directors as part of Occidental’s strategic
review to streamline and focus operations where it has depth and scale
in order to better execute the Company’s long-term strategy and enhance
value for shareholders.
The Hugoton Field properties comprise interests in more than 1.4 million
net acres in one of the largest natural gas fields in the United States,
spanning southwest Kansas, the Oklahoma panhandle and eastern Colorado.
Occidental’s average net production from the Hugoton Field properties in
2013 was approximately 110 million cubic feet equivalent per day, of
which approximately 30 percent was oil.
Occidental anticipates the transaction will be completed by April 30,
2014, subject to regulatory approval and transaction adjustments. The
Company expects to report a gain on the sale. Proceeds from this
transaction will be used to partially fund the announced increase to the
Company’s share repurchase program.
Petroleum Corporation is an international oil and gas exploration
and production company with operations in the United States, Middle
East/North Africa and Latin America regions. Oxy is one of the largest
U.S. oil and gas companies, based on equity market capitalization. Oxy's
wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali
products and vinyls. Oxy is committed to safeguarding the environment,
protecting the safety and health of employees and neighboring
communities and upholding high standards of social responsibility in all
of the company's worldwide operations.
Portions of this release contain forward-looking statements and involve
risks and uncertainties that could materially affect expected results of
operations, liquidity, cash flows and business prospects. Actual results
may differ from anticipated results sometimes materially, and reported
results should not be considered an indication of future performance.
Factors that could cause results to differ materially include, but are
not limited to: reorganization or restructuring of Occidental’s
operations; global commodity pricing fluctuations; the regulatory
approval environment; facility damage due to accidents, labor unrest,
weather, natural disasters, cyber attacks or insurgent activity; or
changes in law or regulations. Words such as “will,” “expects,”
“anticipate” or similar expressions that convey the prospective nature
of events or outcomes generally indicate forward-looking statements. You
should not place undue reliance on these forward-looking statements,
which speak only as of the date of this report. Unless legally required,
Occidental does not undertake any obligation to update any
forward-looking statements, as a result of new information or future
events or otherwise. Material risks that may affect Occidental’s results
of operations and financial position appear in Part I, Item 1A “Risk
Factors” of the 2012 Form 10-K. Occidental posts or provides links to
important information on its website at www.oxy.com.