“It was a very narrow needle hole to thread.” Occidental Petroleum made a $38 billion on shale. Then the coronavirus struck.
By Rebecca Elliott, Christopher M. Matthews and Cara Lombardo March 22, 2020 2:42 pm ET Just weeks ago, Occidental Petroleum Corp. Chief Executive Vicki Hollub sought to reassure investors that her bold bet on U.S. shale oil—a $38 billion deal for rival Anadarko Petroleum Corp.—hadn’t left the company on shaky footing.
“They promised to be prudent,” Mr. Icahn said in an interview. “Yet they risked a great deal of the company’s assets on an extremely imprudent deal.” As of Friday, Occidental had lost roughly 82% of its market capitalization in a year, a greater share than all but eight companies in the S&P 500 index, according to Dow Jones Market Data.
Occidental Petroleum Corp., like many U.S. oil-and-gas companies, has lost much of its market value amid investor flight from the industry and a steep decline in crude prices.CarnivalMarch 20, 2019valueHoldings6.3OccidentalNoble1.35.0EnergyCruise LineDuPontCruises2.3AllianceMs. Hollub, the first female chief executive of a major oil company, faces the biggest challenge of her career: steering Occidental through the chaos while seeking to placate Mr. Icahn.
“The reason former CEOs exist is so the new ones can blame all the problems on them,” said Mr. Chazen, who declined to comment on any settlement between the company and Mr. Icahn. { function createChart { var CHART_ENGINE_NAME='CustomDataChart_WSJ_0_8_53'; var definitions={}; function loadScript { var script=document.createElement; script.setAttribute; document.body.
Though the collapse in crude prices has left oil-and-gas companies such as Occidental vulnerable, Regina Mayor, who leads KPMG’s energy practice, said she didn’t expect activists to descend on the industry and force marriages. That would require a belief in the underlying strength of oil-and-gas companies.Shale kings Occidental was once seen as an attractive midsize alternative to Exxon Mobil Corp. and Chevron Corp., with a healthy dividend and relatively low leverage.
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