Summary
Occidental Petroleum Corporation (OXY) reported a strong financial performance for the second quarter and the first six months of 2010, driven by higher worldwide crude oil and natural gas prices and increased volumes. Net income for the six months ended June 30, 2010, more than doubled compared to the same period in 2009, reaching $2.1 billion on net sales of $9.5 billion. This growth was primarily fueled by the Oil and Gas segment, which saw significant increases in segment earnings due to favorable commodity prices. The company's balance sheet shows a healthy increase in cash and cash equivalents, up to $2.3 billion, indicating robust operating cash flow generation. While capital expenditures remain significant, particularly in the oil and gas segment, Occidental generated sufficient cash from operations to fund these investments, pay dividends, and manage debt. The company is actively engaged in strategic initiatives, including asset acquisitions and participation in major field development in Iraq, signaling continued investment in future growth.
Financial Highlights
46 data points| Revenue | $4.60B |
| Cost of Revenue | $2.29B |
| Gross Profit | $2.31B |
| Operating Expenses | $282.00M |
| Operating Income | $2.17B |
| Net Income | $1.06B |
| EPS (Basic) | $1.31 |
| EPS (Diluted) | $1.31 |
| Shares Outstanding (Basic) | 812.60M |
| Shares Outstanding (Diluted) | 813.80M |
Key Highlights
- 1Net income for the six months ended June 30, 2010, was $2.1 billion, a significant increase from $1.1 billion in the prior year period, reflecting improved market conditions.
- 2Revenue for the six months ended June 30, 2010, rose to $9.5 billion from $6.8 billion in the comparable 2009 period, driven by higher commodity prices and volumes.
- 3Operating cash flow significantly improved, reaching $4.3 billion for the first six months of 2010, compared to $2.2 billion in 2009, primarily due to higher oil and gas prices.
- 4The Oil and Gas segment was the primary earnings driver, with segment earnings increasing substantially year-over-year, benefiting from higher realized prices for crude oil and natural gas.
- 5The company's cash position strengthened, with cash and cash equivalents increasing to $2.3 billion as of June 30, 2010, from $1.2 billion at the end of 2009.
- 6Occidental continues to invest in growth, with capital expenditures of $1.7 billion in the first six months of 2010, and has entered into a significant technical service contract for the Zubair Field in Iraq.
- 7The company announced a share repurchase program, acquiring approximately 130,000 shares in April 2010 at an average price of $86.60 per share.