Occidental to Drop 3 Permian Rigs, Add 15 Wells in Q4; CFO Prioritizes Debt
Occidental Petroleum expects to reduce its Permian rig count by three and bring 15 additional wells online in the fourth quarter. The CFO indicated that share buybacks will take a back seat until preferred equity is redeemed, with a possible tilt toward further debt reduction in a supportive macro environment.
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Occidental Petroleum shared operational and financial priorities during its latest conference call. The company expects to drop three rigs in the Permian Basin in the fourth quarter while bringing 15 more wells online over the same period.
Key CFO comments:
- Any continuous share buyback program will be a lower priority until the redemption of preferred equity.
- Occidental is likely to lean more towards debt reduction if the macro environment is supportive.
The updates reflect a focus on operational efficiency and deleveraging, with shareholder returns contingent on meeting prior obligations and favorable conditions.
Source: First Squawk