Summary
Occidental Petroleum Corporation (OXY) reported a significant year-over-year decline in revenue and net income for the second quarter and the first six months of 2009, largely attributable to lower crude oil and natural gas prices. Net sales for the first six months of 2009 were $6.8 billion, down from $13.1 billion in the prior year period, with net income falling to $1.1 billion from $4.1 billion. The company's oil and gas segment was heavily impacted by these price declines, although sales volumes in this segment saw an increase. Despite the challenging commodity price environment, OXY maintained substantial capital expenditures and continued to pay dividends. The company also issued new long-term debt in May 2009 to strengthen its liquidity. Management indicated that cash on hand and operating cash flows are expected to be sufficient to fund operations, capital expenditures, and dividends, even with the ongoing volatility in energy prices. A significant oil and gas discovery in Kern County, California, announced in July 2009, offers a positive development for future production.
Financial Highlights
47 data points| Revenue | $3.69B |
| Cost of Revenue | $2.06B |
| Gross Profit | $1.63B |
| Operating Expenses | $362.00M |
| Operating Income | $1.05B |
| Net Income | $682.00M |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 811.00M |
| Shares Outstanding (Diluted) | 814.00M |
Key Highlights
- 1Net sales for the first six months of 2009 decreased to $6.8 billion from $13.1 billion in the same period of 2008, primarily due to lower oil and gas prices.
- 2Net income attributable to common stock for the first six months of 2009 was $1.05 billion, a sharp decrease from $4.14 billion in the first six months of 2008.
- 3Diluted earnings per share for the first six months of 2009 were $1.29, down from $5.00 in the comparable period of 2008.
- 4The company issued $750 million of 4.125% senior unsecured notes in May 2009.
- 5Capital expenditures remained robust at $1.9 billion for the first six months of 2009, with a full-year estimate of $3.6 billion.
- 6A significant oil and gas discovery was announced in Kern County, California, in July 2009, with current production exceeding 18,000 gross BOE per day from the discovery area.
- 7Environmental remediation reserves stood at $407 million as of June 30, 2009, with a potential additional loss range of up to $400 million.