HOUSTON--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE: OXY) today announced the entrance into an agreement with Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings, L.P. (PAGP) to sell its 50 percent interest in BridgeTex Pipeline Company, LLC (BridgeTex) to PAA for $1.075 billion.
BridgeTex, a company jointly owned by Occidental and Magellan Midstream Partners, L.P., owns the BridgeTex Pipeline, a 300,000 barrel-per-day crude oil pipeline extending from the Permian Basin to the Houston Gulf Coast area. The BridgeTex Pipeline began service in September 2014.
The sale of Occidental’s interest in BridgeTex includes two transactions: PAA will purchase for $1.075 billion Occidental’s interest in the approximately 400-mile northern leg of the BridgeTex pipeline which runs from the Permian Basin to East Houston; and Magellan will acquire Occidental’s interest in the approximately 40-mile, 24-inch southern leg of the BridgeTex pipeline from Houston to Texas City for $75 million.
"This sale allows us to monetize this important pipeline while retaining long-term cost-advantaged shipping commitments on BridgeTex to ensure access to the key Houston refining markets," said Stephen I. Chazen, President and Chief Executive Officer. “This is in line with our previously announced strategic review to streamline our business, reinvest in areas where we have depth and scale, and maximize total return to shareholders.”
The BridgeTex transaction is contingent on the sale of a portion of Occidental’s Class A shares in PAGP.
About Occidental Petroleum
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental’s businesses. The company’s wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.
Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental’s operations, including any delay of, or other negative developments affecting, the spin-off of California Resources Corporation; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of the 2013 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offering may be made only by means of a prospectus.