Summary
Occidental Petroleum Corporation (OXY) operates as a multinational entity with a diversified business structure encompassing oil and gas exploration and production, chemical manufacturing, and midstream and marketing services. In 2009, the company navigated a challenging economic environment marked by lower commodity prices, particularly for oil and natural gas, which significantly impacted its Oil and Gas segment's earnings. Despite this, Occidental demonstrated resilience by increasing its oil and gas sales volumes and focusing on cost management. The Chemical segment also faced headwinds from the economic slowdown, leading to decreased earnings, though feedstock and energy costs provided some offset. The Midstream, Marketing, and Other segment experienced reduced earnings primarily due to lower marketing income and gas processing margins. Financially, Occidental maintained a strong balance sheet, evidenced by a declining debt-to-capitalization ratio and robust stockholders' equity growth. The company continued to return value to shareholders through dividends, which saw an increase in rate over the period. Management's strategy focuses on long-lived oil and gas assets with growth potential, financial discipline, and efficient management of its chemical and midstream operations to generate cash flow. Occidental also made strategic acquisitions and investments in 2009 to strengthen its asset base.
Financial Highlights
48 data points| Revenue | $14.81B |
| Operating Expenses | $1.30B |
| Operating Income | $3.15B |
| Net Income | $2.92B |
| EPS (Basic) | $3.59 |
| EPS (Diluted) | $3.58 |
| Shares Outstanding (Basic) | 811.30M |
| Shares Outstanding (Diluted) | 813.80M |
Key Highlights
- 1Occidental Petroleum experienced a significant decline in segment earnings for its Oil and Gas segment in 2009, largely due to lower average crude oil and natural gas prices, despite an increase in production volumes.
- 2The Chemical segment's earnings also decreased in 2009, impacted by lower prices and volumes for its key products like chlorine, caustic soda, and PVC, reflecting the broader economic slowdown.
- 3The company maintained financial discipline, with its debt-to-capitalization ratio decreasing to 9% by the end of 2009, down from 16% in 2005.
- 4Occidental increased its dividend rate by 50% and saw its stock price rise by 67% between 2007 and 2009.
- 5Proved oil and gas reserves increased to 3,225 million BOE at the end of 2009, up from 2,977 million BOE in 2008, driven by reserve additions from improved recovery, extensions, discoveries, and acquisitions.
- 6Capital expenditures in 2009 totaled $3.58 billion, with significant investments in oil and gas properties in California and the Permian Basin, as well as acquisitions in the midstream sector.
- 7The company's strategy prioritizes large, long-lived oil and gas assets, financial discipline, and cash generation from its chemical and midstream segments.