8-KLeadership ChangesRegulation FDExhibits & Filings

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Executive Changes (Jul 19, 2016)

Filed July 19, 2016For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation (OXY) announced on July 19, 2016, an expansion of its Board of Directors from 11 to 12 members with the election of Jack B. Moore. Mr. Moore brings extensive experience in the oilfield services sector, having served as Chairman and CEO of Cameron International Corporation prior to its acquisition by Schlumberger. His appointment is effective as of July 14, 2016, and he will receive standard compensation for non-executive directors, including equity and retainer payments on a pro-rata basis. Investors should note Mr. Moore's background, which is highly relevant to the energy industry, particularly in operational and service aspects. Additionally, the filing discloses that Occidental subsidiaries engaged in ordinary course of business transactions with Cameron subsidiaries, totaling approximately $71.9 million in 2015 and $32.5 million year-to-date in 2016 for oilfield services. This disclosure addresses potential related-party transaction concerns, confirming the business relationship was ongoing and within normal operational parameters.

Key Highlights

  • 1Board size increased from 11 to 12 directors.
  • 2Jack B. Moore elected to the Board of Directors.
  • 3Mr. Moore's background includes former Chairman and CEO of Cameron International Corporation.
  • 4Mr. Moore brings significant experience from the oilfield services industry.
  • 5Mr. Moore will receive pro-rata 2016 equity award and retainer for non-employee directors.
  • 6Occidental subsidiaries conducted oilfield services transactions with Cameron subsidiaries.
  • 7Transactions with Cameron subsidiaries totaled $71.9 million in 2015 and $32.5 million year-to-date in 2016.

Frequently Asked Questions

Jack B. Moore has been elected to Occidental's Board of Directors, increasing its size to 12. He is a seasoned executive with extensive experience in the oilfield services sector, notably serving as former Chairman and CEO of Cameron International Corporation. His appointment brings valuable industry expertise to the Board.

The financial impact is primarily related to the compensation for Mr. Moore as a non-executive director. He will receive a pro-rata portion of the 2016 equity award and retainer, which is standard for directors and not an extraordinary expense. His expertise is expected to contribute to strategic guidance rather than immediate financial costs.

The filing discloses that Occidental subsidiaries engaged in ordinary course of business transactions with Cameron subsidiaries for oilfield services. These transactions amounted to $71.9 million in 2015 and $32.5 million in 2016 year-to-date. While these transactions occurred, Mr. Moore's selection to the board is not based on any arrangements or understandings with other parties, and the disclosed business relationship with Cameron was conducted in the normal course of operations.

The transactions highlight that Occidental, as a major oil and gas producer, utilizes services from various industry players. The disclosure confirms that Cameron was one such service provider, and the amounts indicate a material but routine business relationship within the industry's supply chain. This reassures investors that Occidental continues to manage its operational needs through established vendor relationships.