1 Company's Restructuring is Sure to Please Investors

  // Saturday, 14 December 2013 05:00 //

As 2013 draws to a close and 2014 stands on the horizon, it's a new era for Occidental Petroleum (NYSE: OXY) . The company is in the process of a major restructuring, which will include considerable asset sales and a refocusing of its core operations. Other oil and gas majors, including ExxonMobil (NYSE: XOM) and BP (NYSE: BP) , have acted similarly in recent months, shedding billions of dollars worth of assets deemed non-critical.

What makes Occidental's strategy different is how it plans to use any proceeds from these asset sales. Its rivals focus on returning cash to shareholders and shoring up their balance sheets, but Occidental has bigger plans in store. It's doubling down on the United States and reinvesting confidently in domestic fields, which is why investors stand to win big next year and beyond.

A 'more manageable' Occidental Petroleum in 2014
This is management's overall sentiment of what it wants the Occidental Petroleum of the future to look like. The company notified investors earlier this year that it intended to pursue actions, including selling assets, that would create a 'smaller company with more manageable exposure to political risk', in the words of Chief Executive Stephen Chazen. The first step to realizing this goal is selling off assets that are located in areas of the world with pronounced political risk.

Front and center are Occidental's Middle East and North Africa assets.

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