The decision comes less than two weeks after CEO Vicki Hollub vowed to protect dividend
10 March 2020 - 20:34Houston — Occidental Petroleum cut its dividend for the first time in 30 years as the oil explorer and producer opts to conserve cash to cover debt incurred in its $37bn takeover of Anadarko Petroleum.
“Due to the sharp decline in global commodity prices, we are taking actions that will strengthen our balance sheet and continue to reduce debt,” CEO Vicki Hollub said in the statement. Occidental’s dividend and spending cuts will enable it to break even on a cash basis with benchmark US crude trading in the low $30-a-barrel range, according to the statement. Oil futures sold at $33.63 on Tuesday after dipping to $27.34 a day earlier.Activist investor Carl Icahn, who owned a 2.5% stake in Occidental as of December 31, has been a fierce critic of the Anadarko purchase.
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