Summary
Occidental Petroleum Corporation (OXY) reported a strong financial performance for the quarter and first half of 2011, driven by higher oil and gas prices and improved margins across its chemical and marketing segments. Net income for the second quarter of 2011 was $1.8 billion, a significant increase from $1.1 billion in the prior year's quarter, with diluted EPS rising to $2.23 from $1.31. For the first six months of 2011, net income reached $3.4 billion, up from $2.1 billion in the same period of 2010, with diluted EPS at $4.13 compared to $2.61. The company's oil and gas segment showed robust earnings, benefiting from an average worldwide crude oil price of $103.12 per barrel in Q2 2011. Strategic moves during the period included significant domestic acquisitions in South Texas, California, and the Permian Basin, totaling approximately $3.4 billion in the first half of 2011. Additionally, OXY entered into a major joint venture for the Al Hosn gas development project in Abu Dhabi. The company also completed the sale of its Argentine oil and gas operations, which contributed a pre-tax gain of $225 million. Despite increased capital expenditures of $3.0 billion for the first six months of 2011, primarily for oil and gas, and significant debt redemptions, Occidental maintained a healthy liquidity position with approximately $2.0 billion in cash and $1.0 billion in unused committed bank credit.
Financial Highlights
45 data points| Revenue | $6.17B |
| Cost of Revenue | $2.72B |
| Gross Profit | $3.45B |
| Operating Expenses | $388.00M |
| Operating Income | $3.22B |
| Net Income | $1.82B |
| EPS (Basic) | $2.23 |
| EPS (Diluted) | $2.23 |
| Shares Outstanding (Basic) | 812.50M |
| Shares Outstanding (Diluted) | 813.30M |
Key Highlights
- 1Net income increased significantly in Q2 2011 to $1.8 billion ($2.23 EPS) from $1.1 billion ($1.31 EPS) in Q2 2010, reflecting higher commodity prices and segment performance.
- 2Six-month 2011 net income rose to $3.4 billion ($4.13 EPS) from $2.1 billion ($2.61 EPS) in the prior year, driven by strong operational results and strategic gains.
- 3The company made substantial domestic acquisitions totaling approximately $3.4 billion in the first half of 2011, bolstering its oil and gas asset base.
- 4Occidental entered into a significant $4 billion portion of a joint venture for the Al Hosn gas development project in Abu Dhabi.
- 5The sale of Argentine operations closed in February 2011, contributing a pre-tax gain of $225 million to the first half results.
- 6Capital expenditures increased to $3.0 billion in the first six months of 2011, primarily for oil and gas development, signaling investment in future growth.
- 7The company repaid $1.5 billion in long-term debt during the period and maintained a healthy cash position of $2.0 billion.