Occidental Petroleum Cuts 2020 Annual Production, Capital Spending - Quick Facts

(RTTNews) - Energy company Occidental Petroleum Corp. (OXY) announced Wednesday a further reduction in 2020 capital spending to between $2.7 billion and $2.9 billion from its original guidance of $5.2 billion to $5.4 billion, a midpoint reduction of 47 percent.

At current commodity prices, 2020 annual production from continuing operations is expected to be in the range of 1.275 million to 1.305 million BOEPD, a reduction of 6 percent compared to prior guidance of 1.360 million to 1.390 million BOEPD.

The Company also announced it will reduce 2020 operating and corporate costs by at least $600 million compared to the original 2020 plan, including significant salary reductions for executive leadership. These cost reductions are in addition to previously announced operating and overhead synergies of $1.1 billion that are expected to be fully realized in 2020.

The combination of synergy realizations and additional cost reductions is expected to reduce SG&A, Other Operating Expense, and Exploration Overhead to approximately $500 million on a future quarterly run-rate basis. Operating cost reductions are expected to lower 2020 domestic operating costs to approximately $7.00 per BOE.