Summary
Occidental Petroleum Corporation's (OXY) third quarter 2009 report indicates a significant decrease in revenues and net income compared to the same period in 2008, primarily driven by lower oil and natural gas prices. While net sales fell from $7.1 billion to $4.1 billion for the quarter, net income attributable to common stock decreased from $1.98 billion to $2.27 billion. This decline is largely attributed to reduced commodity prices impacting the oil and gas segment, which is the company's primary revenue generator. Despite the challenging commodity price environment, OXY demonstrated operational resilience. The company reported an increase in oil and gas sales volumes and a decrease in operating expenses. Furthermore, OXY continued its strategic initiatives, including the announced acquisition of Phibro LLC to enhance its midstream, marketing, and other segment. The company maintained a strong liquidity position with substantial cash on hand and available credit lines, indicating its ability to fund ongoing operations and capital expenditures.
Financial Highlights
47 data points| Revenue | $4.10B |
| Cost of Revenue | $2.13B |
| Gross Profit | $1.97B |
| Operating Expenses | $359.00M |
| Operating Income | $1.98B |
| Net Income | $927.00M |
| EPS (Basic) | $1.14 |
| EPS (Diluted) | $1.14 |
| Shares Outstanding (Basic) | 811.80M |
| Shares Outstanding (Diluted) | 814.40M |
Key Highlights
- 1Net sales for the third quarter of 2009 were $4.1 billion, a significant decrease from $7.1 billion in the same period of 2008, reflecting lower commodity prices.
- 2Net income attributable to common stock for the third quarter of 2009 was $2.27 billion, down from $1.98 billion in the third quarter of 2008.
- 3Diluted earnings per common share (EPS) decreased to $1.14 in Q3 2009 from $2.77 in Q3 2008.
- 4The company announced an agreement to acquire Phibro LLC, a primarily oil and gas trading entity, to bolster its midstream, marketing, and other segment.
- 5Total assets grew to $42.2 billion as of September 30, 2009, from $41.5 billion at the end of 2008, driven by increases in property, plant, and equipment.
- 6Long-term debt increased to $2.56 billion from $2.05 billion, largely due to the issuance of $750 million in senior unsecured notes in May 2009.
- 7Cash and cash equivalents stood at $1.6 billion as of September 30, 2009, with available unused lines of committed bank credit totaling $1.5 billion.