Summary
Occidental Petroleum Corporation (OXY) filed its 2017 10-K on February 23, 2018, detailing its operations across three primary segments: Oil and Gas, Chemical (OxyChem), and Midstream and Marketing. The company reported a return to profitability in 2017, with net income of $1.311 billion, a significant turnaround from a net loss of $574 million in 2016. This recovery was driven by higher commodity prices, particularly for oil, and improved performance in its chemical and midstream segments. The company continued its strategic focus on enhancing asset quality and delivering shareholder value through a combination of dividend growth, value-driven development, and disciplined capital allocation. Key operational highlights include growth in oil and gas production, especially from its Permian Basin assets, and strategic divestitures of non-core acreage. The Midstream and Marketing segment benefited from increased export activity following the lifting of the crude oil export ban, with significant expansion underway at its Ingleside Crude Terminal. OxyChem demonstrated strong performance with improved margins in caustic soda and PVC. The company remains committed to a low-cost, high-margin value proposition, positioning itself to navigate commodity price cycles and deliver sustainable shareholder returns.
Financial Highlights
51 data points| Revenue | $12.51B |
| Cost of Revenue | $2.94B |
| Gross Profit | $9.57B |
| Operating Income | $1.31B |
| Net Income | $1.31B |
| EPS (Basic) | $1.71 |
| EPS (Diluted) | $1.70 |
| Shares Outstanding (Basic) | 765.10M |
| Shares Outstanding (Diluted) | 765.90M |
Key Highlights
- 1Occidental Petroleum reported a net income of $1.311 billion in 2017, a substantial improvement from a net loss of $574 million in 2016, driven by higher commodity prices and improved segment performance.
- 2The company's oil and gas segment saw increased production, particularly from its core Permian Basin operations, and benefited from higher realized oil and NGL prices.
- 3OxyChem delivered strong results with improved margins for caustic soda and PVC, supported by increased domestic demand and advantageous feedstock costs.
- 4The Midstream and Marketing segment experienced significant earnings growth, aided by increased crude oil exports and the full-year operation of the Ingleside Crude Terminal.
- 5Occidental continued its strategy of portfolio optimization, divesting non-core assets while investing in high-return development opportunities, especially in the Permian Basin.
- 6The company maintained a strong financial position, with a significant increase in operating cash flow to $4.996 billion in 2017.
- 7Capital expenditures increased in 2017 to $3.6 billion, primarily directed towards the Permian Basin to capitalize on recovery in commodity prices.