Occidental Petroleum Reports Decline in Q1 Profits Amid Falling Oil Prices
Warren Buffett-backed Occidental Petroleum (OXY) reports a decline in Q1 profits due to falling oil prices, but maintains steady global production. Despite challenges in the energy sector, Buffett maintains stake in Chevron (CVX). Analysts had expected sharper drop in earnings, but company ends quarter with $2 billion in operating cash flow. Occidental Petroleum remains focused on executing across diversified portfolio for free cash flow growth.
Occidental Petroleum Corp Reports Strong Fourth Quarter for 2023
Occidental Petroleum Corp (OXY) has reported a strong fourth quarter for 2023, with key financial highlights reflecting operational performance and strategic growth. The company achieved a net income of $1.0 billion, or $1.08 per diluted share, and an adjusted net income of $710 million, or $0.74 per diluted share. Production exceeded guidance with 1,234 Mboed, and OxyChem Performance saw pre-tax income of $250 million, surpassing expectations. The quarterly dividend was raised by 22% to $0.22 per share, and strategic acquisitions, including the CrownRock acquisition and the Carbon Engineering acquisition, have enhanced the company’s onshore portfolio and supported low-carbon initiatives. Occidental’s proved reserves grew to 4.0 billion BOE with a reserves replacement of 137%. Operational excellence was a key driver of Occidental’s financial success, with operating cash flow reaching $3.2 billion and cash flow from operations before working capital at $2.5 billion. Despite challenges such as lower domestic crude oil prices and higher lease operating expenses, the company’s worldwide production exceeded expectations, demonstrating operational resilience and a strategic asset base. The oil and gas segment reported a pre-tax income of $1.6 billion for the quarter. Occidental’s strategic growth was underscored by the acquisition of CrownRock, which enhances its U.S. onshore portfolio with premier Permian Basin assets, and the acquisition of Carbon Engineering, supporting low-carbon initiatives. These moves are significant for the company’s long-term growth and shareholder value.