(Oxy, 19.Aug.2024) — Occidental announced it has achieved $3bn in principal debt reduction in the third quarter of 2024, utilizing robust organic cash flow from operations and proceeds from divestitures.
“We are pleased with the rapid and significant progress of our deleveraging program along with enhancements made to our already premier portfolio. By the end of the third quarter, we expect to achieve nearly 85% of our near-term $4.5bn debt reduction commitment,” said President and CEO Vicki Hollub.
“We believe our recent financial actions strengthen our balance sheet and accelerate our shareholder return pathway,” Hollub said.
Following closing of the Barilla Draw divestment, which is expected by the end of the third quarter, Occidental plans to apply the proceeds from the $818mn transaction toward debt repayments, which will bring total year-to-date debt redemptions to over $3.8bn, or approximately 85% of the near-term $4.5bn debt reduction commitment.
Last week’s sale of 19.5 million common units representing limited partner interests in Western Midstream Partners, LP raised $700mn. Occidental has now achieved approximately $1.7 billion in completed or announced divestments in 2024.
Occidental announced a commitment to achieve at least $4.5bn in debt reduction within 12 months of closing the acquisition of CrownRock. Proceeds from the ongoing divestiture program will continue to go toward reducing debt. Occidental will also continue to prudently advance deleveraging via free cash flow.
Occidental has now achieved approximately $1.7bn in completed or announced divestments in 2024.
____________________
