Occidental Petroleum Stepping Up Oil and Gas Asset Sales: Marketing Document
Occidental
Petroleum Corp (OXY.N) is stepping up its oil and gas-producing property sales,
adding land in Utah’s Uinta Basin acquired as part of its $38 billion deal for
Anadarko Petroleum, according to a marketing document seen by Reuters.
Occidental
aims to reduce the $40 billion of debt from the Anadarko purchase and has
raised about $10 billion so far through sales of properties, including a
liquefied natural gas project in Mozambique and oil production elsewhere in
Africa. It has targeted $15 billion in proceeds by mid-2020.
Its
latest offer covers about 190,000 net acres in Uinta Basin’s Greater Natural
Buttes gas field that could bring between $190 million to $240 million based on
prior gas deals in the Rockies, according to a source familiar with the matter.
Occidental
declined to comment on the potential sale.
The
property has forecast net production of 215 million cubic feet equivalent per
day and projected 12-month cash flow of $48 million, according to the document.
EOG Resources and QEP Resources operate on property nearby.
Anadarko
had not completed a new well on the acreage since 2016, according to the
marketing document. It reduced activity in the field to focus on more lucrative
areas.
CIBC
Griffis & Small is the financial and technical adviser.
Occidental
last month began soliciting bids for oil and gas properties in Wyoming and
Colorado that it hopes will fetch up to $700 million. It separately offered its
own Midland, Texas, campus for sale and will move employees there to Anadarko’s
offices, Reuters reported on Monday.
Plans
to sell Occidental’s stake in its Western Midstream Partners (WES.N) pipeline
unit recently were shelved after failing to attract an attractive offer. It
also needs the cash the unit generates, analysts have said.
Shares of Occidental closed at $38.12 Wednesday and are down more than 40% since its interest in Anadarko became public.