Summary
Occidental Petroleum Corporation (OXY) reported a significant net loss of $7.8 billion for the year ended December 31, 2015, a stark contrast to its $616 million net income in 2014. This downturn was primarily driven by substantial asset impairments totaling $10.2 billion, largely attributed to the steep decline in global oil and gas prices throughout 2015. The company's strategy focused on optimizing returns and maintaining financial discipline, leading to asset sales in non-core areas and a reduction in capital expenditures. Despite the challenging commodity price environment, Occidental continued to invest in key growth areas like the Permian Basin and Colombia, leveraging enhanced oil recovery techniques. The company's chemical segment (OxyChem) demonstrated resilience, with segment earnings of $542 million, supported by improved PVC margins due to lower feedstock costs. However, the midstream and marketing segment reported a loss of $1.2 billion, primarily due to asset impairments, including a significant charge related to the Century gas processing plant. Looking ahead, Occidental signaled a commitment to prioritizing high-return projects with a planned capital spending reduction for 2016.
Financial Highlights
48 data points| Revenue | $12.48B |
| Operating Expenses | $1.27B |
| Operating Income | -$8.15B |
| Net Income | -$7.83B |
| EPS (Basic) | $-10.23 |
| EPS (Diluted) | $-10.23 |
| Shares Outstanding (Basic) | 765.60M |
| Shares Outstanding (Diluted) | 765.60M |
Key Highlights
- 1Occidental Petroleum reported a substantial net loss of $7.8 billion for 2015, a significant decrease from a net income of $616 million in 2014, primarily due to $10.2 billion in asset impairments and related charges.
- 2The sharp decline in oil and gas prices throughout 2015 (WTI averaging $48.80/barrel, down from $93.00 in 2014) was a major factor impacting financial results.
- 3The company divested non-core assets, including its Williston Basin operations and entered an agreement to sell its Piceance Basin assets, as part of its strategic review to focus on core operations and improve margins.
- 4Occidental maintained its dividend payments, with total dividends paid at $2.26 billion for 2015, reflecting a commitment to returning capital to shareholders.
- 5Capital expenditures were significantly reduced to $5.3 billion in 2015 from $8.9 billion in 2014, with further reductions planned for 2016.
- 6The chemical segment (OxyChem) performed relatively well, with segment earnings of $542 million in 2015, benefiting from lower feedstock costs.
- 7Proved reserves saw a decrease of 166 million BOE in 2015, largely due to price-related revisions, although additions from development programs and improved recovery were noted.