Oxy reports nearly $1B loss after Anadarko deal; Slashes spending

Occidental Petroleum said it would dramatically slash its spending by nearly 40 percent next year after reporting a nearly $1 billion quarterly loss in the aftermath of its $38 billion acquisition of Anadarko Petroleum.

Houston-based Oxy said it estimates $5.4 billion in capital spending next year after the combined Oxy-Anadarko will spend an estimated $8.6 billion this year. The megadeal to absorb The Woodlands-based Anadarko and its crown jewel Permian Basin acreage closed in the middle of the third quarter on Aug. 8.

Oxy on its own had planned to spend just less than $5 billion this year before the Anadarko deal, but the cutbacks are still much larger than anticipated.