Occidental Completes Acquisition of Anadarko
August 08 2019 - 11:21AM
Business Wire
Combined Company Expected to Drive Significant
Value and Returns for Shareholders
Occidental Petroleum Corporation (“Occidental” or “the Company”)
(NYSE: OXY) today announced the successful completion of its
acquisition of Anadarko Petroleum Corporation (“Anadarko”) (NYSE:
APC) in a transaction valued at $55 billion, including the
assumption of Anadarko’s debt.
“With Anadarko’s world-class asset portfolio now officially part
of Occidental, we begin our work to integrate our two companies and
unlock the significant value of this combination for shareholders,”
said Vicki Hollub, President and Chief Executive Officer. “We
expect to deliver at least $3.5 billion annually in cost and
capital spending synergies and the focus of our Board and
management team is on execution to achieve the promise of this
exciting combination. We look forward to updating the market on our
continued progress in the months ahead.”
The closing of the transaction follows approval of the
transaction by Anadarko’s shareholders at a Special Meeting held
earlier today. More than 99% of the shares voted at the Special
Meeting were in favor of the Occidental merger agreement.
Anadarko shareholders are receiving $59.00 in cash and 0.2934
shares of Occidental common stock per share of Anadarko common
stock in the transaction. Effective after the end of trading today,
Anadarko’s common stock will no longer trade on the New York Stock
Exchange.
About
Occidental
Occidental is an international oil and gas exploration and
production company with operations in the United States, Middle
East and Latin America. Headquartered in Houston, Occidental is one
of the largest U.S. oil and gas companies, based on equity market
capitalization. Occidental’s midstream and marketing segment
purchases, markets, gathers, processes, transports and stores
hydrocarbons and other commodities. The company’s wholly owned
subsidiary OxyChem manufactures and markets basic chemicals and
vinyls. Occidental posts or provides links to important information
on its website at oxy.com.
Forward Looking
Statements
Any statements in this release about Occidental’s expectations,
beliefs, plans or forecasts, including statements regarding the
transaction between Occidental and Anadarko or the sale of certain
of Anadarko’s assets to Total, benefits and synergies of the
transactions and future opportunities for the combined company and
products and securities, that are not historical facts are
forward-looking statements. These statements are typically
identified by words such as “estimate,” “project,” “predict,”
“will,” “would,” “should,” “could,” “may,” “might,” “anticipate,”
“plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,”
“objective,” “likely” or similar expressions that convey the
prospective nature of events or outcomes. Forward-looking
statements involve estimates, expectations, projections, goals,
forecasts, assumptions, risks and uncertainties. Actual results may
differ from anticipated results, sometimes materially, and reported
or expected results should not be considered an indication of
future performance. Factors that could cause actual results to
differ include, but are not limited to: Occidental’s ability to
consummate the proposed transaction with Total; the conditions to
the completion of the proposed transaction with Total; that the
regulatory approvals required for the proposed transaction with
Total may not be obtained on the terms expected or on the
anticipated schedule or at all; Occidental’s indebtedness,
including the substantial indebtedness Occidental is incurring in
connection with the transaction with Anadarko and the need to
generate sufficient cash flows to service and repay such debt;
Occidental’s ability to meet expectations regarding the timing,
completion and accounting and tax treatments of the transaction
contemplated by the transaction with Anadarko or the proposed
transaction with Total; the possibility that Occidental may be
unable to achieve expected synergies and operating efficiencies
within the expected time-frames or at all and to successfully
integrate Anadarko’s operations with those of Occidental; that such
integration may be more difficult, time-consuming or costly than
expected; that operating costs, customer loss and business
disruption (including, without limitation, difficulties in
maintaining relationships with employees, customers or suppliers)
may be greater than expected following the transaction with
Anadarko; the retention of certain key employees of Anadarko may be
difficult; that Anadarko and Occidental are subject to intense
competition and increased competition is expected in the future;
general economic conditions that are less favorable than
expected.
Factors that could cause actual results to differ and that may
affect Occidental’s results of operations and financial position
appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual
Report on Form 10-K for the year ended December 31, 2018, and in
Occidental’s other filings with the U.S. Securities and Exchange
Commission (“SEC”). Additional factors related to the transaction
between Occidental and Anadarko appear in the definitive proxy
statement/prospectus that is a part of Occidental’s registration
statement on Form S-4, as amended, which was declared effective by
the SEC on July 11, 2019, in connection with the transaction
between Occidental and Anadarko.
Because the factors referred to above could cause actual results
or outcomes to differ materially from those expressed or implied in
any forward-looking statements, you should not place undue reliance
on any such forward-looking statements. Further, any
forward-looking statement speaks only as of the date of this
release and, unless legally required, Occidental does not undertake
any obligation to update any forward-looking statement, as a result
of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20190808005586/en/
Media: Melissa E. Schoeb 713-366-5615 melissa_schoeb@oxy.com or
Investors: Jeff Alvarez 713-215-7864 jeff_alvarez@oxy.com
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