According to the 13F-HR, Icahn held 33,244,429, 26,332,388 and 22,571,854 shares of Occidental as of June 30, September 30 and December 31, 2019.
Icahn’s fifth message on February 12, 2020.
Things evolved fast in 2020.
Oil prices plunged in March as COVID-19 developed and a price war started.
Occidental’s stock price closed at $12.51 on March 9, dropping 53.4% from March 6 and 60.3% from March 5. The ex-div date was March 9, with $0.79 dividend per share announced in February.
The following day (March 10), Occidental reduced to quarterly dividend to $0.11 from 0.79, effective July 2020.
It also reduces 2020 capital spending to between $3.5 billion and $3.7 billion from $5.2 billion to $5.4 billion and will implement additional operating and corporate cost reductions.
Meanwhile, Icahn boosted its ownership close to 10% of Occidental.
On March 25, both parties reached agreement. Occidental will add three new Icahn designated directors to Occidental’s Board.
The Icahn Group has withdrawn its slate of director nominees and stockholder proposals at the 2020 Annual Meeting and agreed to vote in favor of the Board’s director nominees and amendments to Occidental’s restated certificate of incorporation that enhance Occidental’s corporate governance.
Under the agreement, the Icahn Group will petition the Delaware Supreme Court to withdraw its pending appeal before the Court relating to the Icahn Group’s books and records request under Section 220 of the Delaware General Corporation Law.
At the same time, Occidental further cut the capital spending to between $2.7 billion and $2.9 billion from its original 2020 guidance of $5.2 billion to $5.4 billion. The Company also announced it will reduce 2020 operating and corporate costs by at least $600 million compared to the original 2020 plan, including significant salary reductions for executive leadership. Operating cost reductions are expected to lower 2020 domestic operating costs to approximately $7.00 per BOE.
To further reserve cash, on April 15, Occidental elected to pay a quarterly $200 million payment it owes Warren Buffett’s Berkshire Hathaway Inc. in common shares, at a 10% discount. Occidental could choose to pay Berkshire differently in future quarters.
Occidental 2019 full year financial result | Earnings call transcript