You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Occidental to pay Buffett dividend in cash

A sign of the shale driller’s growing confidence in its ability to manage its debt load.
Warren Buffett. Image: Bloomberg

Occidental Petroleum Corp. will pay about $200 million in dividends on preferred shares to Warren Buffett’s Berkshire Hathaway Inc. in cash rather than common stock, a sign of the shale driller’s growing confidence in its ability to manage its debt load.

The $2,000-per-share payout on Occidental’s series A cumulative perpetual preferred stock will be paid on October 15, the company said in a filing on Monday.

Occidental had been making the payments with stock since April to conserve cash as it sought to fend off crude’s worst price-collapse in a generation after borrowing massively to buy Anadarko Petroleum Corp. last year.

“This likely indicates that the company is feeling better about its balance sheet and liquidity situation and may have more confidence in its ongoing asset sales processes,” Leo Mariani, an Austin-based analyst at KeyBanc Capital Markets Inc., wrote in a note to clients.

With long-term debt more than three times its market value, Occidental has been hit harder than many by the pandemic-induced drop in oil prices. But the company has been chipping away near-term obligations with a series of bond sales and last month agreed to sell land rights in the Rocky Mountains for $1.3 billion.

© 2020 Bloomberg

COMMENTS   1

You must be signed in to comment.

SIGN IN SIGN UP

” Too big to Fail” always come to mind when you read about these companies. Simply, too big to fail, means:
Let’s go the govt for handouts, citing
– we employ hundred’s 1000’s of people who will lose their jobs. This means the state of Texas will collapse if we fail and the citizens will be collateral damage.

Simply, it’s more convenient to pay the money. The disruption if these companies fail are beyond imagination.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: