Occidental

Occidental Petroleum Corp. (Oxy) Monday said its board of directors approved a “say on pay” policy that will give shareholders a nonbinding advisory vote on executive compensation beginning at the 2010 annual meeting.

Houston-based Plains Exploration & Production Co. (PXP) has completed the sale of its remaining interests in some properties located in the Permian and Piceance basins to Occidental Petroleum Corp. (Oxy) and to some undisclosed companies with contractual preferential purchase rights for a total of $1.25 billion in cash. Oxy in September agreed to acquire the stakes (see Daily GPI, Sept. 26). In late 2007 Oxy paid PXP a total of $1.55 billion for a 50% stake in PXP’s Permian and Piceance leaseholds (see Daily GPI, Dec. 18, 2007). The Permian and Piceance basin assets have net production of around 52 MMcf/d of gas and 4,300 b/d of liquids, or 13,000 boe/d. The properties also have about 92 million boe of proved reserves, 45% developed and 69% weighted to gas. PXP is expected to use the proceeds to develop a joint venture with Chesapeake Energy Corp. in the Haynesville Shale (see Daily GPI, July 2).

Occidental Petroleum Corp. (Oxy) has agreed to acquire the interest it didn’t already own in some Permian and Piceance basin fields from Plains Exploration and Production Co. (PXP) for $1.29 billion. The transaction frees up cash that would allow PXP to develop its joint venture with Chesapeake Energy Corp. in the Haynesville Shale (see NGI, July 7). The Oxy agreement, which is expected to close by the end of the year, follows transactions announced late last year in which Oxy paid PXP $1.55 billion for half stakes in the West Texas and Colorado plays (see NGI, Dec. 24, 2007). The Permian and Piceance assets currently have net production of around 52 MMcf/d of gas and 4,300 bbl of liquids, or 13,000 boe/d. The properties have about 92 million boe of proved reserves weighted 69% to gas. About 45% of the properties are developed. In the first six months of 2008 Oxy produced more than 50 MMcf/d in the Piceance Basin. The Los Angeles-based producer said that with the PXP purchase, gas output would grow to at least 200 MMcf/d by 2010. Oxy’s net acreage position in the Piceance Basin now totals 129,000 acres.

Occidental Petroleum Corp. (Oxy) agreed to acquire the interest it didn’t already own in some Permian and Piceance basin fields from Plains Exploration and Production Co. (PXP) for $1.29 billion. The transaction frees up cash that would allow PXP to develop its joint venture with Chesapeake Energy Corp. in the Haynesville Shale.

Plains Exploration & Production Co. (PXP) and a subsidiary of Occidental Petroleum Corp. (Oxy) agreed to pay $162 million to an undisclosed third party to jointly acquire 11,500 net acres in the Piceance Basin. The leasehold is adjacent to PXP’s existing Piceance Basin natural gas assets (see Daily GPI, April 19, 2007). The agreement gives PXP and Oxy a 95% working interest in the acreage. Plains plans to operate the leasehold and estimated that it includes more than 800 future drilling locations and 75 million boe net potential of unproved reserves. The transaction is expected to close by the end of September.

Sparked by increased production levels and rising commodity prices, Occidental Petroleum Corp. (Oxy) posted record net income of $1.846 billion ($2.23/share) for the first quarter of 2008, a 52% spike over the $1.212 billion ($1.43/share) recorded during the first quarter of 2007.

Sparked by increased production levels and rising commodity prices, Occidental Petroleum Corp. (Oxy) posted record net income of $1.846 billion ($2.23/share) for the first quarter of 2008, a 52% spike over the $1.212 billion ($1.43/share) recorded during the first quarter of 2007.

Houston-based Plains Exploration & Production Co. (PXP) and certain of its subsidiaries agreed to sell certain working interests in oil and gas properties to a subsidiary of Occidental Petroleum Corp. (Oxy) and to XTO Energy Inc. in two separate transactions worth a combined $1.75 billion. PXP also said it is increasing its share repurchase authorization to $1 billion.

Houston-based Plains Exploration & Production Co. (PXP) and certain of its subsidiaries have agreed to sell certain working interests in oil and gas properties to a subsidiary of Occidental Petroleum Corp. (Oxy) and to XTO Energy Inc. in two separate transactions worth a combined $1.75 billion. PXP also said it is increasing its share repurchase authorization to $1 billion.