Summary
Occidental Petroleum Corporation (OXY) announced on July 15, 2020, the payment of its quarterly dividend for its Series A Preferred Stock. Notably, the dividend was paid entirely in shares of the Company's Common Stock, rather than cash. This resulted in the issuance of approximately 11.6 million shares of Common Stock to holders of the Series A Preferred Stock as of June 30, 2020. The company has filed a prospectus supplement to register these shares for resale by the recipients under an existing shelf registration statement. While these shares are now registered, OXY will not receive any proceeds from their subsequent sale, as the transaction relates to dividend payment and not a direct offering. The issuance itself is deemed exempt from registration under Section 4(a)(2) of the Securities Act, with legal opinions confirming the validity of these securities.
Key Highlights
- 1Occidental Petroleum paid its Series A Preferred Stock quarterly dividend on July 15, 2020.
- 2The dividend was distributed in the form of 11,606,992 shares of OXY's Common Stock.
- 3Holders of record of Series A Preferred Stock as of June 30, 2020, received these common shares.
- 4A prospectus supplement has been filed to register the issued common shares for resale.
- 5The registration is under OXY's existing Form S-3 shelf registration statement.
- 6Occidental Petroleum will not receive any proceeds from the resale of these common shares.
- 7The issuance of shares for the dividend payment is exempt from registration under Section 4(a)(2) of the Securities Act.