Latest news with #VickiHollub
Observer
09-08-2025
- Business
- Observer
North Oman Gas & Condensate Discovery under test production: Oxy
MUSCAT: A major hydrocarbon discovery announced recently by US energy major Occidental (Oxy) in one of its concessions in north Oman is undergoing production testing, alongside an evaluation of its appraisal and development plans. The announcement came in published material issued during the Q2 2025 Conference Call hosted by senior Oxy executives over the weekend. Oxy Oman, a wholly owned subsidiary of Occidental Petroleum Corporation, is one of the largest independent investors in the Sultanate's upstream sector, with interests in eight blocks: 9, 27, 62, 30, 65, 51, 72, and 53. Dubbed the 'North Oman Gas & Condensate Discovery,' the resource is estimated to hold around 250 million barrels of oil equivalent (boe). The reservoir is under test production, while appraisal and development plans are being evaluated, said Oxy. Its proximity to existing infrastructure, including a gas plant with available capacity, is considered a key advantage. However, dominating the Oman segment of the conference call were developments related to Oxy Oman's flagship asset – the heavy-oil-producing Mukhaizna field in Block 53. An extension agreement signed recently by Oman's Ministry of Energy and Minerals with Oxy and other Block 53 shareholders is 'expected to deliver significant value while supporting Oman's key national objectives,' the US energy firm said. Furthermore, there is potential to grow resources by over 800 million gross barrels from the field, with competitive project returns, it noted. Under the extension of the Block 53 Exploration and Production Sharing Agreement (EPSA), signed in May, Occidental Mukhaizna and its partners have committed to investing an estimated RO 11.5 billion (approximately USD 30 billion) through to 2050. These investments will cover capital and operational expenditures aimed at enhancing production efficiency and deploying advanced extraction technologies to optimize resource recovery within the block. To date, Oxy Oman has produced over 640 million barrels from Block 53 through the operation of 3,500 wells. In remarks during the conference call, Vicki Hollub, President and Chief Executive Officer of Oxy, commented: 'That was an incredible agreement that we made with Oman because it benefits both Oxy and Oman, and it allows us the flexibility and possibility to invest there because now the economics will be comparable.' Kenneth Dillion, Senior Vice President and President, International Oil and Gas Operations, also highlighted the presence of multiple stacked pays—distinct hydrocarbon-bearing layers (pay zones) stacked vertically within the same geological structure—in the block. 'With all the work we've done there, what we see is multiple stacked pays across a very large block. And in the North, we've been producing the layup wells for some time now, which are totally different and don't need any steam. So we see the extension as a win-win for Oxy and the government, and sustainable.' Net hydrocarbon production from Oxy Oman's portfolio climbed to an average of 76,000 barrels of oil equivalent per day (boepd) during the second quarter of 2025, up from 64,000 boepd in the corresponding period of 2024.
Yahoo
08-08-2025
- Business
- Yahoo
Occidental Unloads $950M in Assets--Debt Drop Could Signal Major Comeback
Occidental (NYSE:OXY) is quietly making big moves. Since April, the company has inked four separate deals to offload select Permian Basin assetspulling in around $950 million. That cash is earmarked for one thing: chopping down debt. Among the transactions, a $580 million sale to an affiliate of Enterprise Products Partners targets gas gathering assets in the Midland Basin. The deal is still pending regulatory green lights but could be finalized soon. The rest came from smaller, non-core and non-operated Permian assets no longer in the company's immediate plans. Warning! GuruFocus has detected 4 Warning Sign with OXY. This is all part of Occidental's broader post-CrownRock cleanup. Since July 2024, it has repaid roughly $7.5 billion in debta figure that could jump even higher once the $580 million sale closes. That brings total divestitures since the CrownRock acquisition to nearly $4 billion. The pace and scale of deleveraging suggest a company that's not just managing its balance sheetbut reshaping it entirely. CEO Vicki Hollub is playing a long game. She believes the current asset base is the strongest in Occidental's history and plans to keep trimming what's unnecessary. Her goal? A leaner, sharper portfolio that can generate sustainable value for shareholders. With core positions in the Permian, DJ Basin, and Gulf of Mexico still intact, Occidental could be positioning itself for stronger capital returns once the dust settles. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- 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.
Globe and Mail
29-06-2025
- Business
- Globe and Mail
Warren Buffett to Step Down by End of 2025. Here Are 3 Stocks He Might Buy on the Way Out
It's official. Warren Buffett has asked the board of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) to replace him as chief executive officer by the end of 2025. Now 94 years old, Buffett has been signaling a leadership transition for years, carefully building a team capable of heading the diversified business giant in the decades to come. Before he gives up some of his power, Buffett might choose to up Berkshire's stakes in some of his favorite investments. If that occurs, I'm betting on the three stocks below. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Berkshire should buy more of this oil company Buffett is a big fan of Occidental Petroleum (NYSE: OXY). Don't take my word for it -- just ask him. He apparently "read every word" of the company's earnings transcript one quarter, noting that the company's management was doing "exactly what I would be doing." CEO Vicki Hollub was "running the company the right way," Buffett added. What exactly caused Buffett to fall in love with Occidental? Occidental's revenue stream is largely dominated by upstream production, but it does have some midstream and chemical production assets. Occidental's stock price has outpaced the price of oil during the past five years, suggesting an ability to create value apart from swings in commodity prices. Importantly, however, the company's valuation has increased according to some metrics, accounting for some or even much of that performance. The company is currently deleveraging itself following the acquisition of CrownRock, and it trades at a reasonable 17.4 times earnings with a 2.2% dividend yield. The company's future will still largely be determined by commodity prices. But Buffett's glowing comments, plus a recent filing that allows Berkshire to acquire as much as half of the total company, suggests that more buying may be on the way. Just last quarter, Berkshire acquired 760,000 more shares -- making this one of the few positions it added to. OXY data by YCharts Expect Amazon to be a long-term winner Berkshire already owns $2.1 billion worth of Amazon (NASDAQ: AMZN). I expect it to buy even more over time. In fact, I expect Berkshire to continue buying Amazon stock long after Buffett departs. Berkshire first bought shares of Amazon in 2019. Over time, we learned that it wasn't even Buffett who made the call. Instead, it was likely the purchase decision of two of Buffett's lieutenants: Ted Weschler and Todd Combs. Buffett reportedly called himself an "idiot" for not buying Amazon previously. What does the Berkshire gang love so much about Amazon? There's the sprawling e-commerce division that has a huge economic moat. More than half of all online shoppers check Amazon first before going to any other website, search engines included. But there's also the Amazon Web Services division, which is growing by leaps and bounds thanks to the rapid expansion of artificial intelligence (AI) technologies. The AWS division already contributes more than half of Amazon's operating profit, and the long growth runway of AI should increase the importance of this division for decades to come. Whether it's the decision of Buffett, Combs, or Weschler, expect Berkshire to continue adding to its Amazon position. Buffett trusts this value stock Chubb (NYSE: CB) is one of the more boring stocks in Berkshire's portfolio. That's likely why Buffett loves the company so much. At the core of Berkshire's empire sits a portfolio of insurance companies. These businesses generate extra cash because they don't need to return premiums to policy holders until a claim is filed. For decades, Buffett has used this "free" cash to invest in a variety of securities. So it's safe to say that Buffett understands the insurance sector very well. The insurance industry has gotten increasingly crowded in recent years. Yet Chubb has been able to generate consistent underwriting profits. Its combined ratio has consistently been below 100%, meaning that it has paid out less in claims than it has collected in premiums. In recent quarters, its combined ratio has been as low as 86% -- an impressive figure in today's tight market. Don't expect huge moves from Chubb. The stock's beta is just 0.56. But that minimized volatility could allow Buffett to put more of its growing cash pile to work in an industry he arguably understands better than anybody. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Forbes
11-06-2025
- Business
- Forbes
The Uncertain Future Of The Energy Industry In New Mexico
Oil lines and pump jacks near Loco Hills in Eddy County, New Mexico. Oil and gas production is one ingredient in New Mexico's cauldron of energy uncertainty, and it's a big one. An estimated 35% of New Mexico's revenue comes from oil and gas fields in the Delaware basin, part of the Permian basin that stretches into West Texas. Crude production exceeded 2 MMbopd (million barrels per day) in 2024, which was double that in 2019 before the Covid dropout in 2020. The entire Permian basin reached 6 MMbopd in 2024, about half of total U.S. crude production. But what will happen if the price of oil stays low? Delaware basin on left extends into southeast New Mexico. If the WTI price of oil stays at $63/barrel, Permian drilling of well inventory will last seven - ten years. This is better than three - four years for the Eagle Ford in East Texas, and the Bakken in North Dakota. But it illustrates one potential downside if the price of oil stays low. Another downside is a projection by Vicki Hollub, CEO of Occidental, who said crude production in the Permian could peak by next year, due to cutbacks in capital spending. Oil and gas production is one ingredient in the cauldron of uncertainties because 35% of New Mexico's revenue comes from the Delaware basin. Another ingredient is that oil and gas globally produces about 50% of greenhouse gases (GHG) that cause global warming. The oil and gas industry is responsible for the largest fraction of emissions in New Mexico at 41%. Although there is a growing industry of renewable energies in New Mexico, and lots of government support, the revenue from this will never replace the revenue from oil and gas. Another dilemma faced by New Mexico is the enormous volume of water that flows to the surface along with oil and gas—so called produced water. 2 billion barrels or 84 billion gallons are produced each year. Right now, this water is left in evaporation ponds, or disposed of in injected wells, or recycled and cleaned to be used in the next frac job. Disposal by deep injection is problematic because it has created earthquakes of magnitude 5, although this has been more of an issue in West Texas. The dilemma is exacerbated because the Permian basin is largely a desert, and New Mexico is in a drought—some say a 20-year drought. A solution that cries out loud is to purify the produced water enough that it can be used in agriculture, or perhaps even drinking water. There are a range of systems from multi-stage filtration up to commercial desalination that can be used, but to achieve the required purification would be costly. Twelve pilot projects are underway to test the effects of treated water on agriculture and manufacturing. But the New Mexico Water Quality Control Commission stepped in last month to prohibit the next step—discharge of treated water to ground or streams. The Commission fears that chemicals still in treated produced water will be toxic, but there are no regulations governing their use. As well as water treatment, the state would need to oversee storage, transport, and disposal of the water. Although there are no regulations for this, NMED (New Mexico Environmental Department) plans to use results from the pilot projects to design new standards, technical and operational, that would allow re-use of produced water to help resolve the fresh water problem in New Mexico. Chaco Canyon was a central gathering place of Indian tribes around 1100 A.D. Eight man-made roads extended radially outwards, some for 50 miles or so. The large collection of ruins at Chaco include separate multi-story buildings and many circular kivas, underground religious centers. Carvings in sheltered sandstone clefts and alignment of structural walls reveal native knowledge of yearly seasons of the sun and moon. Chaco Canyon lies in the San Juan basin, once the largest gas basin in the U.S. Chaco has been simmering in the New Mexico cauldron for a number of years. In 2023, Secretary of the Interior, Deb Haaland issued an order to restrict drilling or development of oil and gas operations to outside a 10-mile radius around Chaco. This was to enlarge the area of protection around Chaco Canyon, which is sacred to many Indian tribes. But not all tribes, as the Navajo Tribe did not live in the region until hundreds of years after 1100 A.D. Kin Kletso Great House viewed from the clifftop. The details of this issue have been spelled out separately. Chaco sits close to the southern edge of the oily window of the San Juan basin. In 2023, the Navajo Nation had wanted to specify a smaller radius of 5 miles, because some members owned mineral rights to some of the land around Chaco. They filed a lawsuit against the Interior Department and BLM (Bureau of Land Management) in January of 2025, arguing to revoke the 10-mile limit because it harmed the profits of lessees who were economically small operators. Into the breach has stepped the Trump administration. New Interior Secretary, Doug Burgum, has told the BLM to reconsider the 10-mile limit. The All Pueblo Council of Governors has resisted this, but not the Navajo Nation. Given the Trump government's directive to revise or rescind actions that are an 'undue burden on the development of domestic energy resources', it's hard to see the BLM keeping the 10-mile protective limit at Chaco. New Mexico was a hotspot of uranium mining back in the 1950s and 1960s when the cold war was at its height. Over 1,000 uranium mines came into existence, many that employed miners from the Navajo Nation. The uranium was bought by the U.S. government to be used for nuclear defense purposes. Church Rock just outside Gallup was an active mining site, and the scene of a bad flood that polluted the Rio Puerco in 1979—the largest-ever radiation accident in the U.S. The health effects of mining, notably lung disease due to radon gas attached to mining dust, is a dark chapter in the history of mining. Lack of epidemiological studies and government bureaucracy delayed cleanup efforts for surface tailings radiation, and underground contamination of aquifers. The U.S. Congress eventually passed RECA, an act that provided reparations to people affected by uranium mining and by nuclear tests in Nevada. The law was due to expire in June 2024, but the Senate passed a bill to extend it by six years. However, the House never brought it to a vote, so the law has expired. Under RECA, the government has paid claims of 41,000 people, and paid $2.6 billion in reparations, the majority to recipients from the Nevada nuclear testing site. The Inflation Reduction Act of 2022 opened a door to nuclear power as an alternative energy source, to the tune of $30 billion. This would include reopening of old mines, many of which lie on Native land, as well as new mines. The Trump government appears to have taken another giant step toward uranium mining by another new executive order on May 23 that prioritized nuclear fission reactors, traditional and SMRs (small modular reactors). This was ostensibly to provide burgeoning new electricity needed for U.S. data centers. According to the Secretary of Energy, 'Nuclear has the potential to be America's greatest source of energy addition. It works whether the wind is blowing, or the sun is shining, is possible anywhere and at different scales.' Given the state's history, a lot of tension will arise if uranium mining is allowed to resume in New Mexico. Untrammeled growth of uranium mining and nuclear generation of electricity may ignite a spark to the ever-present fear of radioactivity in mining and disposal of nuclear waste, which are always simmering in the New Mexico cauldron of uncertainty.
