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HOUSTON - Occidental (NYSE:OXY), an international energy company, has announced that CrownRock Holdings, L.P., will be selling 29,560,619 shares of Occidental's common stock through an underwritten secondary public offering. Occidental itself is not selling any shares in this transaction, and all proceeds from the sale will go to the Selling Stockholder, CrownRock Holdings.
The sale of the shares is contingent on market conditions, and there is no guarantee of when or if the sale will be finalized. The shares will be available for purchase on the New York Stock Exchange, as well as through over-the-counter transactions, negotiated transactions, or other means at prices linked to the prevailing market rates.
The financial institutions J.P. Morgan, Morgan Stanley, and RBC Capital Markets are managing the underwriting for the offering. Potential investors can obtain a copy of the prospectus supplement and the accompanying base prospectus, when available, through these institutions.
This offering is being made according to a shelf registration statement filed with the Securities and Exchange Commission (SEC), which is currently effective. Interested parties are urged to read the registration statement and other documents filed with the SEC before investing, which can be accessed for free on the SEC's website.
Occidental is recognized as one of the largest oil and gas producers in the United States, with significant operations in the Permian and DJ basins, as well as offshore in the Gulf of Mexico. The company's midstream and marketing segment works to ensure the flow of its oil and gas products and to maximize their value. Additionally, Occidental's chemical subsidiary, OxyChem, produces vital components for consumer products, while its Oxy Low Carbon Ventures subsidiary focuses on technologies and solutions to grow the business while reducing emissions.
In other recent news, Western Midstream Partners (NYSE:WES) has launched a secondary public offering of 19 million common units, managed by Barclays. Meanwhile, Occidental Petroleum (NYSE:OXY) has halted its planned exchange offer for certain senior notes issued by CrownRock L.P. and CrownRock Finance, Inc. This cancellation involved a potential exchange of up to $376 million in aggregate principal amount of 5.000% Senior Notes due 2029.
Additionally, negotiations between Occidental and Colombia's state-owned oil company Ecopetrol for the purchase of a stake in CrownRock have ended without reaching an agreement. In a strategic move, Occidental has also agreed to sell a portion of its assets in the Delaware Basin to Permian Resources for approximately $818 million. These are among the recent developments affecting both companies.
InvestingPro Insights
As Occidental (NYSE:OXY) navigates the complexities of the energy market, recent data from InvestingPro provides a snapshot of the company’s financial health and stock stability. With a market capitalization of $53.32 billion, Occidental stands out as a significant player in the industry. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 13.49, suggesting that investors might find the stock reasonably valued compared to its earnings.
One of the InvestingPro Tips highlights that Occidental has maintained dividend payments for 51 consecutive years, which could be a reassuring sign for income-focused investors. This commitment to dividends could indicate a stable financial foundation and a management team that prioritizes shareholder returns. Additionally, the company is trading near its 52-week low, potentially offering an attractive entry point for investors seeking to capitalize on future upward movements in the stock price.
On the operational side, Occidental has demonstrated profitability over the last twelve months, with a gross profit of $16.5 billion and a robust gross profit margin of 60.83%. This level of profitability, coupled with an operating income margin of 19.76%, reflects the company's ability to effectively manage its operations and costs.
For those interested in further insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/OXY, which delve deeper into the company's performance and forecasts. As Occidental approaches its next earnings date on November 5, 2024, investors will be keen to see how these metrics and expert analyses align with the company's reported outcomes.
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