**Occidental Holds to Production Forecast Amid Midland and Delaware Basin Deals**
In a recent conference call, Occidental Petroleum Corp., a leading oil and gas producer, reaffirmed its production guidance despite significant transactions in the Midland and Delaware basins. The company’s strategic efforts aim to maintain its operational efficiency and profitability, even as it divests non-core assets to manage its debt.
**Recent Production Milestones**
In the three months ending June 30, 2024, Occidental averaged nearly 1,258,000 barrels of oil equivalent per day (boe/d), marking a significant increase from the first quarter’s 1,172,000 boe/d. This steady production outlook is bolstered by the expected output from CrownRock LP’s recently acquired Midland basin operations, which will offset the pending loss of volumes from a planned divestiture in the Delaware basin.
**Operational Efficiency Gains**
The enhancement in oil production can be attributed to efficiency gains driven by several factors. Occidental has recorded a 10% reduction in unconventional well costs year to date. CEO Vicki Hollub highlighted these savings as originating from lower nonproductive time, increased frac utilization, operational efficiency gains, and facilities optimization. These efficiency measures are expected to further accelerate time-to-market in the second half of the year.
**Recent Transactions**
Occidental has been actively engaging in asset divestitures to manage its substantial debt. The company has plans to divest $4.5 billion to $6 billion in assets by mid-2026, aimed at reducing its debt load. Recent transactions include the sale of assets in the Delaware basin to Permian Resources for approximately $818 million. This sale involves 27,500 net acres in Texas and 2,000 net acres in New Mexico, with a combined production estimate of 15,000 boepd for Q4 2024.
**Strategic Divestitures**
The divestitures program