Occidental Petroleum 2001 Annual Report Download - page 33

proceeds of approximately $792 million. The net proceeds were used for general
corporate purposes, which included the repayment of commercial paper and the
redemption of other debt.
In January 1999, Occidental issued $525 million of 8.16-percent Trust
Preferred Securities due in 2039, and callable in 2004, for net proceeds of $508
million. The net proceeds were used to repay commercial paper. The Trust
Preferred Securities balance reflects the issuance of preferred securities, net
of unamortized issue costs and repurchases.
At December 31, 2001, Occidental had approximately $2.1 billion of
committed credit lines, which are all available and are utilized, as needed, for
daily operating and other purposes. These lines of credit are primarily used to
back up the issuance of commercial paper. Occidental has reclassified $199
million of maturities due 2002 to long-term debt based on its ability to
refinance this debt on a long-term basis utilizing the committed credit lines
mentioned above.
Occidental expects to have sufficient cash in 2002 from operations, and
from proceeds from existing credit facilities, as necessary, for its operating
needs, capital expenditure requirements, dividend payments and mandatory debt
repayments. In the event of fluctuations in operating cash flow, Occidental has
the ability to vary its discretionary cash outflow, such as capital
expenditures.
ACQUISITIONS, DISPOSITIONS AND COMMITMENTS
2001
SALE OF INTRASTATE PIPELINE
On August 31, 2001, Occidental sold the entity that owns pipelines in Texas
that are leased to a former subsidiary. The entity was sold to Kinder Morgan
Energy Partners, L.P. Occidental recorded an after-tax loss of approximately
$272 million in connection with this transaction.
SALE OF INDONESIA GAS PROPERTIES
On July 10, 2001, Occidental completed the sale of its interest in the
Tangguh LNG project in Indonesia to Mitsubishi Corporation of Japan. Occidental
recorded an after-tax gain of approximately $399 million for this transaction.
2000
MILNE POINT ASSET SWAP
On December 4, 2000, Occidental completed an agreement with BP to obtain
BP's interest in a carbon dioxide field in New Mexico and related pipelines in
exchange for Occidental's interest in the Milne Point oil field in Alaska,
together with additional cash consideration. The gain on this transaction was
not significant.
OXYMAR PURCHASE
On November 29, 2000, OxyChem purchased a 28.6-percent interest in OxyMar,
a Texas general partnership that owns the Ingleside, Texas VCM facility operated
by OxyChem. The interest was purchased from U.S. VCM Corporation, an affiliate
of Marubeni Corporation, which continues to own a 21.4-percent interest and
remains a 50-percent partner for corporate-governance purposes. OxyVinyls owns
the remaining 50-percent interest.
ECUADOR FARM OUT TO AEC
On November 1, 2000, Occidental agreed to farm out a partial economic
interest in its Block 15 operations in Ecuador to AEC. AEC will earn a
40-percent interest in the block and will assume certain capital costs through
2004. Occidental will remain the operator of Block 15. The gain on this
transaction was not significant.
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SALE OF DUREZ
On November 1, 2000, Occidental completed the sale of its Durez phenolic
resins and compounding businesses and assets to Sumitomo Bakelite Co., Ltd. for
gross proceeds of approximately $150 million. There was a $13 million after-tax
gain on this transaction.
GULF OF MEXICO ASSETS MONETIZED
On August 15, 2000, Occidental completed agreements with respect to two