By Kim Khan
Occidental Petroleum (NYSE:OXY) announced measures Tuesday in response to the sharp drop in oil prices, slashing its dividend and capital spending.
Shares jumped 6.6% in response to the move and with a general market recovery from the lows of the day.
Occidental said it would cut its dividend to 11 cents per share from 79 cents per share effective in July.
The company will cut capital spending to $3.5 billion to $3.7 billion from its previously expected $5.2 billion to $5.4 billion and would add other cost cutting measures..
"Due to the sharp decline in global commodity prices, we are taking actions that will strengthen our balance sheet and continue to reduce debt," CEO Vicki Hollub said in a statement.
These actions lower our cash flow breakeven level to the low $30s WTI, excluding the benefit of our hedges, positioning us to succeed in a low commodity price environment," Hollub added.
