Finance Chief of Oxy vows to quickly get rid of a $40 billion debt

Speaking about one of the biggest oil company acquisitions of the past decade, the finance chief of Occidental Petroleum Corp revealed that the company has already started working towards reducing the debt of $40 billion which came along with the purchase of Anadarko Petroleum.

At the latest EnerCom energy conference, the finance chief of Occidental Petroleum Corp, Cedric Burgher referred to the $40 billion which came with the purchase of Anadarko Petroleum as ‘not too bad’ while also revealing that Oxy would conduct a detailed assessment before selling off any asset of Anadarko.

However, according to an investment note made by Evercore ISI analysts, the biggest oil company merger& acquisition reduces the value of Occidental stakes.

Notably, this investment note led to a 4.5% drop in the value of Occidental shares.

Furthermore, at the EnerCom energy conference, Burgher said that the entire Occidental board has full confidence in the deal, in spite of activist Carl Icahn announcing that he would be appointing 4 new directors in a bid to quickly dispose of the assets of Anadarko.

According to Burgher, through duplicate offices that includes getting rid of redundancies, cost-efficiency through divestitures as well as synergies the deal would make Occidental a profit of $3.5 billion.

As per a brief translation of a statement given by Icahn regarding the acquisition, he termed the deal as, “way too expensive and not motivated.”

Additionally, as per reports, Occidental would continue to have its headquarter in Houston, however, it will list a recent Houston property for sale.

Notably there was no mention of the acquisition of the stakes of Western Partners by Cedric Burgher, however, he did reportedly state that if required Occidental would selectively list properties for sale, which might include the U.S. offshore production acquired through the Anadarko deal as well.

Furthermore, Burgher said that Oxy has no plans of selling Anadarko’s Texas and Woodlands properties.

Leave a Reply

Your email address will not be published. Required fields are marked *