10-QPeriod: Q1 FY2011

OCCIDENTAL PETROLEUM CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2011

Filed May 5, 2011For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation (OXY) reported a strong first quarter for 2011, with net income rising to $1.5 billion ($1.90 per diluted share) from $1.1 billion ($1.31 per diluted share) in the same period of 2010. This growth was driven by higher crude oil and natural gas liquids (NGL) prices and increased volumes across its oil and gas segment, coupled with improved margins and volumes in the chemical segment. The company also benefited from significant gains related to asset dispositions, including its Argentine operations. Operationally, OXY has made strategic moves, including a substantial investment in the Shah Field gas development project in Abu Dhabi and acquisitions of oil and gas properties in the U.S. The company also addressed its debt structure by redeeming senior notes. While exploration in Libya has ceased due to political unrest, the impact on producing fields remains uncertain. OXY maintains a solid liquidity position with substantial cash on hand and available credit facilities, expecting sufficient funds for ongoing operations and planned capital expenditures.

Financial Highlights

45 data points
Beta

Revenue

$5.73B

0.6% Gross Margin

Net Income

$1.55B

0.3% Net Margin

EPS (Diluted)

$1.90

Total Assets

$54.06B

Cash & Equivalents

$2.10B

Free Cash Flow

$897.00M

Financial Statements
Beta
Revenue$5.73B
Cost of Revenue$2.53B
Gross Profit$3.20B
Operating Expenses$441.00M
Operating Income$1.41B
Net Income$1.55B
EPS (Basic)$1.90
EPS (Diluted)$1.90
Shares Outstanding (Basic)812.60M
Shares Outstanding (Diluted)813.40M

Key Highlights

  • 1Net income increased by 43% to $1.5 billion in Q1 2011, with diluted EPS reaching $1.90, up from $1.31 in Q1 2010.
  • 2Revenue grew to $5.7 billion from $4.6 billion, primarily driven by higher commodity prices and increased sales volumes in the oil and gas segment.
  • 3The company made significant strategic investments, including a 40% interest in the $10 billion Shah Field gas development project in Abu Dhabi and acquisitions of oil and gas properties in the U.S.
  • 4Occidental completed the sale of its Argentine oil and gas operations in February 2011, realizing a pre-tax gain of $225 million.
  • 5Exploration activities in Libya have been suspended due to political instability and sanctions, leading to a $35 million write-off of exploration costs.
  • 6Cash flow from operating activities remained strong at $2.2 billion, consistent with the prior year, despite a working capital build-up.
  • 7Capital expenditures increased significantly to $1.3 billion, with a substantial portion allocated to oil and gas projects.

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