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Occidental Petroleum on Wednesday informed about ‘significantly’ reducing its workforce, after buying out its rival Anadarko Petroleum last year. Layoffs are currently underway across the company, after staff was cut through a voluntary program, spokeswoman Melissa Schoeb said. She added, “Occidental’s integration team identified the jobs we need to successfully and safely operate our business and achieve our synergy goals,”.
Occidental Petroleum yesterday reported $93 million in adjusted net income, disappointing the consensus estimate. The oil major, who recently acquired Anadarko, steered clear of the immediate impact of the acquisition move. Occidental's production in the quarter reached 1.155 million barrels of oil equivalent per day (BOE/D), up 70% from the corresponding quarter last year.
Occidental Petroleum yesterday concluded the $55 billion-acquisition of Anadarko Petroleum, with the assumption of Anadarko’s debt. Vicki Hollub, President and CEO at Occidental said, “With Anadarko’s world-class asset portfolio now officially part of Occidental, we begin our work to integrate our two companies and unlock the significant value of this combination for shareholders”.
Occidental Petroleum Corp saw a 14% dip in core profit for the second quarter. Occidental, which recently acquired Anadarko in a $38 billion deal, reported $729 million in core income for the second quarter, dropping from $848 million in the corresponding quarter last year. Lower income for Occidental has been attributed to the offset of higher oil prices by adjustments to derivatives contracts and poorer natural gas prices.
Energy Minister of Algeria has informed that Algeria will block Total's acquisition of Anadarko's assets. He said, "Our ministry has contacted Anadarko to get explanations on this information, but so far we got no answer. It means there is no contract between Total and Anadarko." It was decided that if Occidental successfully takes over Anadarko, it will sell some of Anadarko's assets to Total for $8.8 billion.
In a major turn of events, supermajor Chevron pulled back from the takeover battle for Anadarko, yesterday. Occidental, which received $10 billion in financial assistance from Berkshire Hathaway, has emerged victorious in one of the largest takeover contests in the oil and gas industry. Chevron received a $1 billion breakup fee from Occidental Petroleum, to be utilized in a $5 billion share repurchase program.
Supermajor, Total yesterday inked an $8.8 billion asset purchase deal with Occidental, and dropped a new bombshell in the ongoing Chevron-Anadarko-Occidental battle. If Occidental wins the bid, then the binding agreement will require the firm to sell Anadarko Petroleum’s oil and gas assets in Africa. Post divestment, Occidental will gain ownership to the Western Midstream Partners and Anadarko’s acreages in U.S. shale basins, the Gulf of Mexico and South America.
In an interesting turn of events on Tuesday, Warren Buffett-owned Berkshire Hathaway backed Occidental’s $38 billion-bid for Anadarko. Berkshire commitment of $10 billion aid will greatly boost Occidental’s chances of securing a win in one of the biggest oil-industry takeover battles. However, the help comes at the cost of 100,000 preferred shares and a warrant to buy upto 80 million shares of Occidental at $62.50 apiece in a private offering.
According to the Chicago's investment firm Harris Associates, after Berkshire's $10 billion support to Occidental, Chevron no longer stands a chance to buy Anadarko. “I think at this point you would consider Chevron’s bid dead”, said chief investment officer at Harris. Buffet's firm decided to back Occidental a day after Anadarko agreed for the negotiations with Occidental.
In a rather surprising move, Occidental Petroleum placed a new bid for the acquisition of Anadarko Petroleum on Wednesday. The new bid tops the $33 billion acquisition bid offered by supermajor, Chevron. If successful, the acquisition will add approximately quarter million acres to Occidental’s acreage in the Permian shale, all the while boosting its global production to 1.4 million barrels of oil and gas per day.
Steve Chazen was the man behind the grand success of Occidental Petroleum Corporation. He stepped down as Occidental’s CEO in 2016 after a prolific career of more than 20 years at the company. Chazen is looking forward to employ the previous success model in south Texas with a $2.66 billion deal.