No. of Recommendations: 1
Occidental Petroleum Corporation (OXY) Q3 2023 Earnings Call Transcript - 11/8/23
Nitin Kumar (Mizuho)
I want to start Vicki with the topic du jour in the industry M&A. I know Oxy has a deep bench of inventory that you highlight. But obviously with some deals out there recently, there's been a focus on consolidation. Just wanted to get your thoughts on how you see Oxy fitting into that trend going forward?Vicki Hollub
Well, Nitin, I do want to reiterate that we were early consolidators in our industry with the Anadarko acquisition, and we did that because we saw significant synergies there, and those were obvious to us. And they were in -- the acreage was in an area that made it possible for us to understand the subsurface and to gain those synergies.
Now that we've done that, we more than doubled our production with that acquisition. We've more than achieved the $2 billion of synergies that we had forecast, and now it's considerably strengthened where we are today. So the good thing is we don't have to do acquisitions. Therefore, while our BD group keeps up with and is aware of what's happening in our industry, we feel no need to have to do anything or be a part of it."seekingalpha.com - Occidental petroleum corporation oxy q3 earnings call transcriptVicki? Talking out of both sides of your mouth?
Wouldn't it better to pay off the debt and Uncle Warren's preferreds first?
The Crown Rock acreage is in a
very good spot. There is considerable upside in the deeper Barnett shale horizon in The Midland Basin. and OXY have reportedley drilled some very "good" "exploratory tests in that horizon.
We'll see what happens.
