logo
Plus   Neg
Share
Email

Occidental Petroleum Cuts 2020 Annual Production, Capital Spending - Quick Facts

Energy company Occidental Petroleum Corp. (OXY) announced Wednesday a further reduction in 2020 capital spending to between $2.7 billion and $2.9 billion from its original guidance of $5.2 billion to $5.4 billion, a midpoint reduction of 47 percent.

At current commodity prices, 2020 annual production from continuing operations is expected to be in the range of 1.275 million to 1.305 million BOEPD, a reduction of 6 percent compared to prior guidance of 1.360 million to 1.390 million BOEPD.

The Company also announced it will reduce 2020 operating and corporate costs by at least $600 million compared to the original 2020 plan, including significant salary reductions for executive leadership. These cost reductions are in addition to previously announced operating and overhead synergies of $1.1 billion that are expected to be fully realized in 2020.

The combination of synergy realizations and additional cost reductions is expected to reduce SG&A, Other Operating Expense, and Exploration Overhead to approximately $500 million on a future quarterly run-rate basis. Operating cost reductions are expected to lower 2020 domestic operating costs to approximately $7.00 per BOE.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Apotex Corp. recalled all lots of type 2 diabetes medication Metformin hydrochloride in the form of oral film-coated tablets for the potential presence of nitrosamine impurity, N-Nitrosodimethylamine (NDMA), above levels of the Acceptable Daily Intake Limit (ADI), the U.S. Food and Drug Administration or FDA said in a statement. Groupe Renault plans to cut about 14,600 jobs across the world and lower its production capacity. The plan includes almost 4,600 jobs reduction in France, through voluntary retirement and retraining. Amazon said it will convert 125,000 of the 175,000 temporary workers it hired in March amid the coronavirus pandemic, to permanent full-time employees in June. The e-commerce giant had hired the temporary employees in March to meet strong consumer demand amid the lockdown. The job openings were in Amazon's fulfillment centers and its delivery network.
Follow RTT