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Occidental Petroleum

Largest oil producer in the Permian Basin?

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After closing the deal to buy Anadarko, Occidental’s has secured its status as the largest oil producer in the Permian Basin, the top U.S. shale field. Occidental’s global production will double to 1.4 million barrels of oil and gas per day.

Occidental CEO Hollub has promised to quickly shed most of Anadarko’s non-U.S. oil properties to focus on shale. Occidental also must absorb or sell Anadarko’s U.S. Gulf of Mexico offshore production.

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Anadarko

Chevron gives up on Anadarko Petroleum, will get $1B termination fee

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The decision leaves Occidental as a victor in a race that once again demonstrated the attractiveness of the American shale.

The decision also means Chevron will collect a $1 billion breakup fee, a windfall that it could use to purchase another driller in the Permian Basin, the engine of the American oil drilling boom.

Chevron will not increase its offer for Anadarko from CNBC.

Occidental Petroleum Corporation (Occidental) is an oil and gas exploration and production company. The Company operates through three segments: oil and gas, chemical (OxyChem), and midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas.

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Occidental Petroleum

Moody’s likely to downgrade Oxy if it wins Anadarko

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Occidental Petroleum likely will receive a downgraded investment rating if it wins the bidding war against the much larger Chevron to acquire Anadarko Petroleum,

  • Moody’s Investors Service (Moody’s) placed all ratings of Occidental Petroleum Corporation (OXY) under review for downgrade, including its A3 senior unsecured debt rating and its P-2 commercial paper rating.

These rating actions follow today’s announcement that OXY has proposed a $76 per share acquisition of Anadarko Petroleum Corporation (APC, Ba1 review up), totaling approximately $38 billion in stock and cash. OXY has proposed issuing 0.6094 new shares and $38.00 cash for each share of Anadarko, resulting in overall consideration that is 50% equity and 50% cash. The transaction value is approximately $57 billion, consolidated for Anadarko’s debt and the debt of Western Midstream Operating (Western, Ba1 review up). Should OXY’s bid for Anadarko prove successful, a multiple notch rating downgrade should be expected. If the acquisition closes as proposed and crude oil prices remain supportive, OXY would likely emerge from the review with a weakly positioned investment grade rating.

Anadarko’s and Western’s ratings remain on review and are not affected by this action.

The following ratings were placed under review for downgrade:

Issuer: Occidental Petroleum Corporation

CREDIT RATINGS ISSUED BY MOODY’S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 

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