Occidental finance chief pledges to act quickly to pare acquisition debt
Reuters
Published Aug 12, 2019 04:02PM ET
Occidental finance chief pledges to act quickly to pare acquisition debt
DENVER (Reuters) - Occidental Petroleum Corp (N:OXY) expects to quickly reduce the $40 billion in debt it took on with its purchase of Anadarko Petroleum (NYSE:APC), the company's finance chief said on Monday.
Cedric Burgher, in his first public remarks since the $38 billion acquisition closed last week, told an Enercom energy conference audience, the resulting debt burden was "not that bad," and pledged Occidental would be selective in choosing assets to sell.
He defended the purchase, which has been attacked by activist Carl Icahn as "misguided and hugely overpriced," as providing future oil production as a good valuation. Icahn is seeking to remove and replace four directors to influence the scale and pace of asset sales.
"When the smoke clears, people will start to see what we've done," Burgher said to an overflow crowd.
Occidental plans to be selective about what properties it puts on the market to help pay off the debt, he also said, saying it likes the U.S. offshore production acquired in the deal.
"We like the Gulf of Mexico (properties) we think it's a keeper; great free cash flow, great assets," he said. He made no mention of the Western Midstream Partners stake that it also acquired with Anadarko.
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Written By: Reuters
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