Summary
Occidental Petroleum Corporation (OXY) filed an 8-K on January 4, 2023, providing a financial and operational update for the fourth quarter and full year 2022. The company highlighted significant progress in strengthening its balance sheet, having completed a $3 billion share repurchase program and repaid over $10.5 billion in debt throughout 2022, with more than $1.1 billion of that repaid in the fourth quarter. This debt reduction effort has brought the face value of the company's debt below $18 billion, and all outstanding interest rate swaps have been retired. Operationally, OXY experienced a minor production impact from the late December 2022 North American Winter Storm Elliott. The storm caused temporary downtime primarily affecting compression in its domestic onshore operations. The company expects this to result in an average Permian and Rockies production impact of approximately 10 Mboe per day for the fourth quarter of 2022. Normal operations have since resumed.
Key Highlights
- 1Completed $3 billion share repurchase program during Q4 2022.
- 2Repaid over $10.5 billion of debt in fiscal year 2022, with over $1.1 billion repaid in Q4 2022.
- 3Reduced the face value of debt to below $18 billion.
- 4Retired all outstanding interest rate swaps.
- 5Experienced an estimated 10 Mboe per day production impact in Q4 2022 from Winter Storm Elliott.
- 6Normal operations have resumed following the weather event.