Summary
Occidental Petroleum Corporation (OXY) reported a significant decline in financial performance for the first quarter of 2009 compared to the same period in 2008, primarily driven by a substantial drop in crude oil and natural gas prices. Net income attributable to common stock fell to $368 million from $1.8 billion, and diluted EPS decreased to $0.45 from $2.22. This downturn was largely due to reduced commodity prices, despite an increase in oil and gas production volumes and a strong performance in the chemical segment. The company's liquidity remains solid, with substantial cash on hand and available credit facilities, though capital expenditures were elevated. Investors should note the company's proactive approach to managing costs and its strategic focus on projects with higher return potential amidst a challenging commodity price environment.
Financial Highlights
24 data points| Revenue | $3.07B |
| Cost of Revenue | $2.06B |
| Gross Profit | $1.01B |
| Operating Expenses | $270.00M |
| Net Income | $368.00M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.45 |
Key Highlights
- 1Significant year-over-year decline in net income and earnings per share due to lower commodity prices.
- 2Oil and Gas segment earnings saw a sharp decrease, impacted by prices falling from $86.75/bbl to $39.29/bbl for oil.
- 3Chemical segment demonstrated resilience with stable earnings, driven by higher caustic soda margins.
- 4Midstream, Marketing and Other segment experienced a substantial earnings drop due to lower NGL prices and marketing adjustments.
- 5Capital expenditures increased to $1.1 billion, with a focus on higher-return projects and potential for project delays.
- 6The company maintained strong liquidity with $1.1 billion in cash and $1.5 billion in available credit lines.
- 7Occidental Petroleum adopted several new accounting standards, including those related to participating securities, derivatives, and noncontrolling interests, with no material immediate impact.