Summary
Occidental Petroleum Corporation's (OXY) 8-K filing on January 27, 1998, primarily relates to the company's definitive agreement to acquire California-American Water Company (Cal-Am) for approximately $178 million in cash and the assumption of $440 million in debt. This strategic move signals OXY's intent to significantly expand its presence in the water utility sector, complementing its existing operations and diversifying its revenue streams beyond its core oil and gas business. The acquisition is expected to be accretive to earnings per share.
Key Highlights
- 1Occidental Petroleum agrees to acquire California-American Water Company (Cal-Am).
- 2Acquisition cost includes approximately $178 million in cash.
- 3OXY will assume approximately $440 million in Cal-Am's debt.
- 4This acquisition significantly expands OXY's footprint in the water utility sector.
- 5The deal is expected to be accretive to Occidental Petroleum's earnings per share.
- 6This move represents a strategic diversification for OXY beyond its traditional oil and gas operations.