NEW YORK ( TheStreet) -- It's always exciting when a once-stodgy energy company comes up with a new and potentially profitable game plan.
On Friday, Occidental Petroleum (OXY) announced its initial actions resulting from the company's strategic review to streamline and focus operations.
In a company statement, OXY's leadership said this was being done "... in order to better execute the company's long-term strategy and enhance value for shareholders."
Let the good times begin for OXY shareholders.The Board of Directors authorized the following:
Pursue the sale of a minority interest in the Middle East/North Africa operations in a financially efficient manner.
Pursue strategic alternatives for select midcontinent U.S. assets, including oil and gas interests in the Williston Basin, Hugoton Field, Piceance Basin and other Rocky Mountain assets.
Sale of a portion of the company's 35% investment in master limited partnership
Plains All-American Pipeline
(PAA), which recently went public. This sale would result in pre-tax proceeds of $1.3 billion to Occidental, whose remaining interest in Plains All-American Pipeline, based on the IPO price, is worth approximately $3.4 billion.
Jim Cramer and Stephanie Link, who co-manage the Action Alerts PLUS portfolio, and TheStreet's research team had a number of substantial takeaways about Friday's big announcements from OXY: "The initial phase is a partial sale of its Middle East/North Africa exploration-and-production assets, a sale of non-core mid-Continent assets in the Williston (Bakken), Hugoton, Piceance and other Rocky Mountain assets (66,000 boepd of non-core assets) and monetization of its 35% interest in the Plains GP IPO. This is in line with the company's guidance that it gave on its second-quarter conference call, and it was generally expected by analysts and investors."
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