Summary
Occidental Petroleum Corporation (OXY) completed a transformative year in 2019, marked by the significant acquisition of Anadarko Petroleum Corporation. This acquisition substantially expanded OXY's oil and gas operations, particularly in the Permian Basin, and strengthened its overall market position. While the acquisition drove increased revenues and production volumes, it also resulted in higher debt levels and acquisition-related costs, impacting the company's net income for the year. OXY's strategy remains focused on delivering a sustainable dividend, allocating capital to high-return projects, and deleveraging its balance sheet through operational efficiencies and planned asset divestitures. The company's chemical segment (OxyChem) experienced a downturn in demand and pricing, while its marketing and midstream segment navigated challenging market spreads. Key risks highlighted include commodity price volatility, integration challenges from the Anadarko acquisition, and the ongoing impact of environmental regulations.
Financial Highlights
49 data points| Revenue | $20.91B |
| Cost of Revenue | $2.79B |
| Gross Profit | $18.12B |
| SG&A Expenses | $893.00M |
| Net Income | -$985.00M |
| EPS (Basic) | $-1.22 |
| EPS (Diluted) | $-1.22 |
| Shares Outstanding (Basic) | 809.50M |
| Shares Outstanding (Diluted) | 809.50M |
Key Highlights
- 1Completed the significant acquisition of Anadarko Petroleum Corporation, expanding OXY's oil and gas portfolio, primarily in the Permian Basin and DJ Basin.
- 2Increased net sales by 14% year-over-year to $20.4 billion, driven by higher production volumes from the acquired Anadarko assets and legacy Permian Resources operations.
- 3Reported a net loss of $985 million ($1.22 per diluted share) for the year, a substantial decrease from the prior year's net income of $4.1 billion, primarily due to acquisition-related costs and increased interest expenses.
- 4Ended the year with total assets of $109.3 billion, up significantly from $43.9 billion in the prior year, largely due to the Anadarko acquisition.
- 5Long-term debt increased substantially to $38.5 billion from $10.2 billion, reflecting the financing of the Anadarko acquisition.
- 6Initiated a divestiture program of approximately $15 billion in connection with the Anadarko acquisition, including the sale of Mozambique LNG assets for $4.2 billion.
- 7Maintained a strong position in Enhanced Oil Recovery (EOR) operations, particularly with CO2 flooding in the Permian Basin, leveraging decades of expertise.