Occidental Petroleum Corporation (NYSE: OXY) announced today that its
Board of Directors declared a regular quarterly dividend, authorized the
spin-off of its California oil and gas business and increased the
company’s share repurchase program.
The Board declared a regular quarterly dividend of $.72 per share on
common stock payable on January 15, 2015, to stockholders of record as
of December 10, 2014. Occidental has paid quarterly dividends
continuously since 1975 and has increased its dividend each year since
2002. The current annual rate is $2.88 per share.
The Board approved the spin-off of subsidiary California Resources
Corporation through the distribution of approximately 80.1 percent of
the outstanding shares of California Resources to holders of Occidental
common stock. Subject to the satisfaction of the conditions to the
spin-off, the distribution is expected to occur on November 30, 2014.
Occidental shareholders will receive 0.4 shares of California Resources
common stock for every one share of Occidental common stock held at the
close of business November 17, 2014, the record date for the
distribution. Fractional shares of California Resources common stock
will not be distributed. Any fractional shares of California Resources
common stock will be aggregated and sold in the open market and the
aggregate net proceeds of the sales will be distributed ratably in the
form of cash payments to Occidental stockholders of record who would
otherwise be entitled to receive a fractional share of California
Resources common stock.
The Board also authorized the repurchase of an additional 60 million
shares of the company’s common stock, leaving the program with 76
million shares, as of September 30, 2014. Share repurchases will
continue to be funded from available cash from operations, excess cash
on hand and proceeds from asset sales as part of the previously
announced strategic review, including a dividend of approximately $6
billion from California Resources to Occidental. The program does not
require purchases to be made within a particular timeframe.
About Occidental Petroleum
Occidental
Petroleum Corporation is an international oil and gas exploration
and production company with operations in the United States, Middle
East/North Africa and Latin America. Headquartered in Houston,
Occidental is one of the largest U.S. oil and gas companies, based on
equity market capitalization. Occidental’s midstream and marketing
segment gathers, processes, transports, stores, purchases and markets
hydrocarbons and other commodities in support of Occidental’s
businesses. The company’s wholly owned subsidiary OxyChem manufactures
and markets chlor-alkali products and vinyls. Occidental is committed to
safeguarding the environment, protecting the safety and health of
employees and neighboring communities and upholding high standards of
social responsibility in all of the company's worldwide operations.
Forward-Looking Statements
Portions of this press release contain forward-looking statements and
involve risks and uncertainties that could materially affect expected
results of operations, liquidity, cash flows and business prospects.
Actual results may differ from anticipated results, sometimes
materially, and reported results should not be considered an indication
of future performance. Factors that could cause results to differ
include, but are not limited to: global commodity pricing fluctuations;
supply and demand considerations for Occidental's products;
higher-than-expected costs; the regulatory approval environment;
reorganization or restructuring of Occidental's operations, including
any delay of, or other negative developments affecting, the spin-off of
California Resources Corporation; not successfully completing, or any
material delay of, field developments, expansion projects, capital
expenditures, efficiency projects, acquisitions or dispositions;
lower-than-expected production from development projects or
acquisitions; exploration risks; general economic slowdowns domestically
or internationally; political conditions and events; liability under
environmental regulations including remedial actions; litigation;
disruption or interruption of production or manufacturing or facility
damage due to accidents, chemical releases, labor unrest, weather,
natural disasters, cyber attacks or insurgent activity; failure of risk
management; changes in law or regulations; or changes in tax rates.
Words such as “estimate,” “project,” “predict,” “will,” “would,”
“should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,”
“believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or
similar expressions that convey the prospective nature of events or
outcomes generally indicate forward-looking statements. You should not
place undue reliance on these forward-looking statements, which speak
only as of the date of this release. Unless legally required, Occidental
does not undertake any obligation to update any forward-looking
statements, as a result of new information, future events or otherwise.
Material risks that may affect Occidental's results of operations and
financial position appear in Part I, Item 1A “Risk Factors” of the 2013
Form 10-K. Occidental posts or provides links to important information
on its website at www.oxy.com.
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