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The stock now yields 3.2% with the new dividend. Matthew is a senior energy and materials specialist with The Motley Fool. Returns as of 10/26/2020. Market data powered by FactSet and Web Financial Group. Shares of Occidental (ticker: OXY), which plunged 53%, or $14.35, to $12.51 on Monday, were up 96 cents, at $13.47, in midday trading Tuesday. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: and capital spending plan following yesterday's, . Occidental will reset its dividend from its previous quarterly rate of $0.79 per share to $0.11 per share, starting with its July payment. This year’s two dividend cuts will save about $2.7 billion a year.
Occidental can sustain its new spending plan and dividend on the cash flow it can produce at an average oil price in the low $30s, which is right around the current level. Image source: Getty Images. Oil and gas exploration and production company Occidental Petroleum (OXY, $16.16) was one of the earliest dividend cuts. Several more will likely join this group, including other major producers like, Cumulative Growth of a $10,000 Investment in Stock Advisor, Occidental Petroleum Slashes its Dividend, Capital Spending to Combat Lower Crude Prices @themotleyfool #stocks $OXY $CVX, Why These Oil Stocks Fell More Than 20% in September, Oil Stocks 2020: What Investors Should Do Now, Occidental Petroleum Reaches a Deal to Sell its Onshore Assets in Colombia, Occidental Petroleum Finally Has Some Good News for Investors, Occidental Petroleum Will Pay Warren Buffett in Cash This Time, Copyright, Trademark and Patent Information. The company is undertaking these actions to strengthen its balance sheet so that it can continue to reduce debt following last year's $55 billion acquisition of Anadarko Petroleum. Several more will likely join this group, including other major producers like Chevron, which is reportedly eying spending and production cuts. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Let's conquer your financial goals together...faster. The market widely anticipated this move, as shares of the oil company plummeted more than 50% yesterday and pushed its, Occidental joins a growing list of U.S. oil companies that have slashed their spending plans following yesterday's oil market crash. Occidental Petroleum (NYSE:OXY) announced today that it would reduce its dividend and capital spending plan following yesterday's historic decline in oil prices. See you at the top! It has struggled to deliver on its $15 billion asset sales target due to challenging market conditions and trouble closing some of its planned sales. OXY slashed its payout by … Occidental Petroleum (OXY) cuts quarterly dividend to $0.11 per share from $0.79 Dow turns negative as Wall Street's rebound fades Dick's Sporting Goods (DKS) Raises Quarterly Dividend 13.6% to … Stock Advisor launched in February of 2002. Further, the company intends to reduce its 2020 capital spending plan to a range of $3.5 billion-$3.7 billion, which is down from is initial $5.2 billion-$5.4 billion budget guidance. Occidental joins a growing list of U.S. oil companies that have slashed their spending plans following yesterday's oil market crash. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. Finally, the company said it would implement additional expense reductions. Occidental can sustain its new spending plan and dividend on the cash flow it can produce at an average oil price in the low $30s, which is right around the current level. The market widely anticipated this move, as shares of the oil company plummeted more than 50% yesterday and pushed its dividend yield up to 25%.
The spending and dividend cuts together put the company’s break-even WTI price in the low $30s, Hollub said.
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