Occidental Petroleum (OXY +2.8%) expects to take $6B-$9B in impairment charges in Q2 related to the value of its oil and gas assets, it says in an 8-K filing.
The company foresees a prolonged period of lower commodity prices brought on by lower oil demand due to the impacts of COVID-19.
Occidental's preliminary anticipated oil and gas production for the quarter is forecast at the high end of the prior guidance of 1.34M-1.4M boe/day.
Separately, Occidental says it will buy back as much as $1.5B worth of various senior notes due in 2021 and 2022 as it tries to reduce its debt.
SunTrust recently upgraded OXY shares to Buy, saying the company's quality oil holdings could boost free cash flow to nearly $4B in 2021.
