Occidental Petroleum Corporation reported during its earnings call in late January that the company sustained a fourth quarter loss of $3.4 billion.
In response to low oil prices, Occidental announced it will scale back its 2015 capital spending by 33 percent to $5.8 billion from $8.7 billion spent in 2014. In addition to the cuts, the company will also be reducing its activity in the Bakken.
This confirms the news we reported in October that the company was in the process of restructuring, and looking to sell off its Williston Basin assets. Read more here.
“Stephen Chazen, President and Chief Executive Officer confirmed that the company “minimized our development activities in the Williston Basin, domestic gas properties, Bahrain, and the Joslyn oil sands project, as these have subpar returns in this current product price environment. These efforts should result in a reduction in the cost of executing our capital program, as well as reducing our operating expenses”
Occidental may be moving out of the Bakken sooner than later. The Dickinson Press reported this week that the company had one rig finishing up in Dunn County and plans to move the equipment offsite within a week.
Other company highlights include a year-end 2014 cash balance of $7.8 billion, which exceeds their total debt of $6.8 billion. Additionally, the company projects that oil and gas production will grow 6 to 10 percent in 2015.
Learn more about Occidental's Bakken operation
Read more at oxy.com