Occidental
Petroleum Corporation (NYSE: OXY) today announced the entrance into
an agreement with Plains All American Pipeline, L.P. (PAA) and Plains GP
Holdings, L.P. (PAGP) to sell its 50 percent interest in BridgeTex
Pipeline Company, LLC (BridgeTex) to PAA for $1.075 billion.
BridgeTex, a company jointly owned by Occidental and Magellan Midstream
Partners, L.P., owns the BridgeTex Pipeline, a 300,000 barrel-per-day
crude oil pipeline extending from the Permian Basin to the Houston Gulf
Coast area. The BridgeTex Pipeline began service in September 2014.
The sale of Occidental’s interest in BridgeTex includes two
transactions: PAA will purchase for $1.075 billion Occidental’s interest
in the approximately 400-mile northern leg of the BridgeTex pipeline
which runs from the Permian Basin to East Houston; and Magellan will
acquire Occidental’s interest in the approximately 40-mile, 24-inch
southern leg of the BridgeTex pipeline from Houston to Texas City for
$75 million.
"This sale allows us to monetize this important pipeline while retaining
long-term cost-advantaged shipping commitments on BridgeTex to ensure
access to the key Houston refining markets," said Stephen I. Chazen,
President and Chief Executive Officer. “This is in line with our
previously announced strategic review to streamline our business,
reinvest in areas where we have depth and scale, and maximize total
return to shareholders.”
The BridgeTex transaction is contingent on the sale of a portion of
Occidental’s Class A shares in PAGP.
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.
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.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any securities, nor shall there be any sale of such
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. Any
such offering may be made only by means of a prospectus.
Copyright Business Wire 2014