By Jennifer Hiller
April 24 (Reuters) - With a $38 billion bid on Wednesday forrival oil producer Anadarko Petroleum Corp, OccidentalPetroleum Corp CEO Vicki Hollub has again grabbed the spotlight,as the oil and gas industry trailblazer squares off againstChevron Corp, a company four times Occidental's size.
Hollub, the first woman to become chief executive officer ofa major oil company, rose through the ranks after earning adegree in mineral engineering. She turned around a business thatlost $1.09 billion in 2016 and last year tripled profit, to $4.1billion.
By challenging Chevron for a takeover of Anadarko, she isbetting she can convince investors that she is able to run amuch bigger business. Anadarko has deep-water fields and ismoving into liquefied natural gas, two areas where Occidentalhas no experience. Chevron offered $33 billion for Anadarkoearlier this month.
Anadarko's board said it would study the Occidental offer.Occidental and Chevron want Anadarko's nearly quarter-millionacres in the Permian Basin, the top U.S. shale field.
Many on Wall Street were stunned by the $76 per share bidwhich is valued at $57 billion including debt.KeyBanc Capital Markets downgraded Occidental stockto sector weight from overweight. Moody's Investors Serviceplaced Occidental's ratings under review for possible downgrade.
"She’s staking a lot of the company's and her reputation ona potential Oxy-Anadarko merger," said Brian Kessens, portfoliomanager at Tortoise Capital, which holds shares in an Anadarkopipeline business and in Chevron. He considers the Anadarko deala kind of "merger of equals" compared to a potential takeover bythe much larger Chevron.
The deal would double in one swoop Occidental's oil and gasoutput, to 1.4 million barrels per day. The combination alsowould boost Occidental's free cash flow and help the companyraise its dividend over time, Hollub said.
Hollub, who became CEO in 2016 after leading Occidental'sPermian Basin operations, turned the company into one of thelargest producers in the Permian. It also has emerged as one ofthe biggest exporters of U.S. shale oil, rivaling large tradingfirms and oil majors.
But during her tenure as CEO, investors fled oil explorationstocks and have turned thumbs down on Occidental's shares. Thecompany has lost about 23 percent of its value compared to a 4.8percent decline in the S&P oil and gas exploration index duringthe same period.
"Vicki is a rare leader who is running a marathon, not asprint," said Katie Mehnert, CEO of Experience Energy andPinkPetro, a women-in-energy advocacy group. "She’s leading hercompany with a long-term view, and that’s a very difficult thingin a world that responds to Twitter. She’s focused and goinglong.”
Last month, Hollub used her star power to put together ameeting between energy industry executives and Secretary ofState Mike Pompeo, who urged the industry to support U.S.foreign policy goals."We need more women CEOs in our industry so she's a greatrole model," Melody Meyer, a board member of BP PLC, who hasknown Hollub for between 10 and 15 years.(Reporting by Jennifer Hiller in Houston and JessicaResnick-Ault in New York; Editing by David Gregorio)
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