Summary
Occidental Petroleum Corporation reported a significant turnaround in the first quarter of 2010 compared to the same period in 2009, driven primarily by a substantial increase in oil and gas prices and volumes. Net income surged to $1.088 billion from $377 million, with diluted EPS rising to $1.31 from $0.45. This robust performance was largely attributable to the Oil and Gas segment, which saw pretax operating profit increase dramatically due to higher crude oil and natural gas prices. While the Oil and Gas segment demonstrated strong recovery, the Chemical segment experienced continued weakness and margin erosion. The Midstream, Marketing and Other segment showed improvement. The company maintained a strong liquidity position with approximately $1.9 billion in cash and $1.5 billion in available credit lines, sufficient to cover operating needs, capital expenditures, dividends, and debt payments. Occidental plans capital expenditures of approximately $4.5 billion for 2010.
Financial Highlights
45 data points| Revenue | $4.62B |
| Cost of Revenue | $2.27B |
| Gross Profit | $2.34B |
| Operating Expenses | $349.00M |
| Operating Income | $1.10B |
| Net Income | $1.06B |
| EPS (Basic) | $1.31 |
| EPS (Diluted) | $1.31 |
| Shares Outstanding (Basic) | 812.10M |
| Shares Outstanding (Diluted) | 813.50M |
Key Highlights
- 1Significant year-over-year increase in Net Income to $1.088 billion (from $377 million) and Diluted EPS to $1.31 (from $0.45) driven by improved commodity prices and volumes.
- 2Oil and Gas segment was the primary driver of improved performance, with pretax operating profit increasing substantially due to higher crude oil and natural gas prices and volumes.
- 3The Chemical segment continued to face challenges, showing weakness and margin erosion, resulting in a significant decrease in segment earnings.
- 4Midstream, Marketing, and Other segment earnings improved, reflecting better margins in gas processing and marketing/trading businesses.
- 5Strong cash flow from operations of $2.210 billion, a significant increase from $780 million in Q1 2009, primarily due to higher commodity prices.
- 6Maintained a healthy liquidity position with $1.9 billion in cash and $1.5 billion in available credit facilities.
- 7Planned 2010 capital expenditures of approximately $4.5 billion, with a focus on maintaining returns above the cost of capital.