Latest news with #Permian Basin
Yahoo
5 days ago
- Business
- Yahoo
Oxy Sells Permian Assets Valued at $950MM to Reduce Debt
Occidental Petroleum is selling off non-core assets and pushing forward in its debt reduction plan, with four Permian Basin deals valued at $950 million during the second and early third quarters. Between April and July 2025, Occidental (Oxy) completed multiple transactions totaling approximately $370 million, divesting non-core and certain non-operated Permian Basin upstream assets that are not within the company's near-term development plan, according to an Aug. 6 news release. Oxy didn't disclose the buyers. Oxy agreed in July with an affiliate of Enterprise Products Partners (EPD) to sell an entity that owns certain gas gathering assets in the Midland Basin for $580 million. The deal is subject to customary closing conditions and regulatory approval, including the expiration or termination of the Hart-Scott-Rodino Act waiting period, and is expected to close in the third quarter. In February 2024, EPD announced several acquisitions with Western Midstream Partners on Feb. 22, days after reports that Occidental Petroleum, which owns Western Midstream, was looking to sell some Permian assets. Since its December 2023 announcement that it would buy CrownRock, Oxy has made divestitures close to $4 billion. During the last 12 months, Occidental has repaid $7.5 billion of debt, including proceeds from non-core Delaware Basin transactions that closed in April and July, and expects to apply an additional $580 million to debt reduction upon closing of the Midland Basin gas gathering divestiture. "We are pleased with how we continue to strategically strengthen our portfolio, and it's rewarding to see those efforts drive debt reduction and create value for shareholders," Vicki Hollub, Oxy's president and CEO, said in the news release. "We believe Occidental has the best assets in our history and we will continue to find opportunities to high-grade our portfolio and generate long-term value." Oxy executives said this time last year that the firm intended to reduce debt by up to $6 billion within 18 months of the $12 billion CrownRock close. Oxy reported in its quarterly 10-Q filing with the U.S. Securities and Exchange Commission (SEC) that in July, the firm agreed to sell gas gathering assets in the Permian Basin for approximately $580 million. Since the beginning of the year and through the form filing date on Aug. 6, Oxy has sold non-core proved and unproved U.S. onshore oil and gas working interests valued at $730 million. During the first quarter, Oxy sold $900 million worth of non-operated proved and unproved royalty and mineral interests in the Denver-Julesburg Basin. The difference in the assets' net book value and adjusted purchase price was treated as a normal retirement, and as a result no gain or loss was recognized.
Bloomberg
04-08-2025
- Business
- Bloomberg
Shale CEO Says Oil Markets Are In for Bearish Crude-Supply Flood
The largest independent Permian Basin oil driller is warning of a bearish influx of crude supplies to global markets in coming months. In preparation, Diamondback Energy Inc. is cutting $100 million in capital spending, narrowing its output forecast and delaying some fracking work. The moves announced Monday by Chief Executive Officer Kaes Van't Hof appeared to be defensive in nature and aimed at avoiding the trap of boosting production when there's a risk of weaker prices in a well-supplied market.
Yahoo
02-08-2025
- Business
- Yahoo
Exxon, Chevron turn page on legal fight as profits slip
Lower crude prices dented profits at ExxonMobil and Chevron as the companies signaled Friday they are moving past a legal fight over an acquisition ultimately won by the latter firm. In similar earnings reports, both companies reported second-quarter profit declines despite increased production, with both US giants pumping more from the Permian Basin, a shale-rich region in the states of Texas and New Mexico. But the two companies still garnered enough extra cash to sustain rich shareholder payouts. "The second quarter, once again, proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments," ExxonMobil CEO Darren Woods said in an earnings statement that touted $9.2 billion in shareholder distributions in the three-month period. ExxonMobil's profits came in at $7.1 billion, down 23.4 percent from the year-ago period. Crude prices were under $65 a barrel, more than $10 less than the level in the 2024 quarter. Revenues fell 12.4 percent to $81.5 billion. The company said it brought online three more of 10 "key" projects due to start in 2025 that will lead to growth. The projects included upgrades to existing facilities in Singapore and Britain to produce more high-value products from low-quality petroleum feedstocks, as well as a renewable diesel venture in Canada. Chevron, meanwhile, reported profits of $2.5 billion, down 43.4 percent from the year-ago level. Revenues dropped 12.4 percent to $44.8 billion. Chevron pumped 3.4 million barrels of oil equivalent per day during the quarter, well below the 4.4 million of oil equivalent produced by ExxonMobil. - Closing the gap - But Chevron CEO Mike Wirth said the company expects to end 2025 close to four million barrels per day following the completion of its $53 billion acquisition of US company Hess, which was delayed for more than a year following a legal spat with ExxonMobil. ExxonMobil had contested Chevron's right to take over Hess' interest in an offshore field in Guyana in which ExxonMobil holds the largest stake. But on July 18, Chevron announced that it completed the transaction following a "favorable" outcome in the arbitration dispute with ExxonMobil. Wirth said the legal dispute had given it more time to plan out integration, enabling it to speed up $1 billion in annual efficiency gains six months faster than the original plan. The extra time also means that Chevron has already repurchased more than 50 percent of company shares it had planned to issue for the Hess transaction, officials said on a conference call. Chevron spent $5.5 billion in shareholder distributions in the second quarter. In an interview with CNBC, Woods said he was surprised at the outcome of the Hess arbitration, but had called Wirth and John Hess of Hess to congratulate them. "We're moving on from that," Woods told the network. "It's time to move forward and continue on the business." Such frictions typify comportment in the oil industry, where huge capital outlays require rivals to work together on individual projects even when they compete. "You have to learn to walk and balance between, on the one hand, being partners and working closely together, and on the other hand, fiercely competing," Woods said. "I have no doubt we'll continue to have a constructive partnership." Shares of ExxonMobil fell 1.7 percent in afternoon trading, while Chevron slipped 0.5 percent. jmb/wd
