HOUSTON, Feb 4 (Reuters) - Occidental Petroleum Corp , the fourth-largest U.S. oil producer, says it has no plans to cut its dividend and is confident the outlay can be covered through a combination of cash flow and debt despite low crude prices.
Oxy’s dividend costs the company about $2.23 billion annually. Given that cost, the more-than 70 percent drop in crude prices in the past year and a move by fellow independent oil producer ConocoPhillips to slash its own dividend on Thursday, analysts and investors asked Oxy executives for reassurances on a conference call.
“We don’t see a threat to our dividend going through this cycle,” Oxy President Vicki Hollub said on the call.
Shares of Oxy rose about 1 percent to $68.66 despite a dip in oil prices after the company reported a bigger-than-expected fourth-quarter loss and cut its 2016 budget in half. (Reporting by Ernest Scheyder)