Occidental Takes $1.4 Billion Writedown, Cuts Budget on Oil Rout
- Shale producer takes charge related to Western Midstream
- Company took on massive debt pile with Anadarko deal
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Occidental Petroleum Corp. took a $1.4 billion writedown related to an investment in a pipeline affiliate, cut capital spending and withdrew its guidance for the year after a historic collapse in oil prices.
Occidental’s first-quarter loss included impairment charges related to its equity investment in Western Midstream Partners LP, the Houston-based company said in a statement Tuesday. The shale producer is reducing its budget for this year to between $2.4 billion and $2.6 billion, a drop of more than 50% from its initial plan. Shares rose 4.4% to $16 in after-market trading in New York, while Western Midstream was little changed.