Deals
Occidental Plans to Slash $7.8 Billion Debt With Pipeline Split
- Driller’s stock jumps, one of best S&P energy index performers
- Occidental to reduce stake in Western below 50% by end of year
Photographer: Andrew Burton/Getty Images
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Occidental Petroleum Corp. plans to make the pipeline business it acquired as part of last year’s takeover of Anadarko Petroleum Corp. a stand-alone company, removing about $7.8 billion of debt from its balance sheet.
Occidental pledged to reduce its holdings in Western Midstream Partners to less than 50% by the end of this year but “expects to maintain a significant economic interest” in the company, the Houston-based oil explorer said in a statement Monday. The amount of debt taken off the balance sheet amounts to about 15% of Occidental’s total borrowings, according to data compiled by Bloomberg.