Summary
Occidental Petroleum Corporation (OXY) announced significant strategic changes on February 13-14, 2014, as detailed in this 8-K filing. The company is undergoing a substantial restructuring aimed at focusing operations and enhancing shareholder value. Key among these changes are the increase of its quarterly dividend to $2.88 per share and an authorization to repurchase an additional 30 million shares of common stock, signaling confidence in its financial position and commitment to returning capital to shareholders. Furthermore, Occidental is divesting its Hugoton Field assets for $1.4 billion and is initiating the separation of its California business into a distinct, publicly traded entity. This strategic review aims to streamline operations, allowing Occidental to concentrate on core businesses such as the Permian Basin and its chemical subsidiary, OxyChem. The appointment of Elisse B. Walter, former SEC Chairman, to the Board of Directors also adds significant regulatory and governance expertise.
Key Highlights
- 1Occidental increased its quarterly dividend to $0.72 per share ($2.88 annually) and authorized an additional 30 million share repurchase program.
- 2The company agreed to sell its Hugoton Field assets for $1.4 billion as part of a strategic review.
- 3Occidental announced plans to separate its California business into an independent, separately traded company by late 2014 or early 2015.
- 4The former SEC Chairman, Elisse B. Walter, was appointed to the Board of Directors, increasing its size to 11.
- 5The CEO, Mr. Chazen, will remain in his role through the 2016 Annual Meeting of Stockholders to oversee the strategic review.
- 6Occidental will retain its headquarters in Houston, focusing on Permian Basin and international E&P, midstream, marketing, and OxyChem.
- 7The separation of the California business is subject to market conditions, regulatory approvals, and final board approval.