Summary
Occidental Petroleum Corporation (OXY) reported a net income of $1.559 billion for the first quarter of 2012, a slight increase from $1.549 billion in the same period of 2011. This growth was driven primarily by higher oil prices and increased domestic oil and gas volumes, which boosted net sales to $6.268 billion from $5.726 billion year-over-year. Despite these positive top-line trends, the company experienced increased operating costs and higher depreciation, depletion, and amortization (DD&A) expenses, as well as lower international oil volumes and domestic natural gas prices, which partially offset the revenue gains. Operationally, the oil and gas segment remained the primary contributor to earnings, with production increasing to 755,000 BOE per day from 730,000 BOE per day in the prior year. The company continued to invest heavily in capital expenditures, with $2.4 billion allocated primarily to the oil and gas segment, indicating a focus on future production growth. While liquidity remains strong with approximately $3.8 billion in cash and $2.0 billion in available credit, the company managed its finances carefully, utilizing cash from operations to fund its capital program and dividend payments.
Financial Highlights
45 data points| Revenue | $6.27B |
| Cost of Revenue | $2.95B |
| Gross Profit | $3.32B |
| Operating Expenses | $434.00M |
| Operating Income | $1.56B |
| Net Income | $1.56B |
| EPS (Basic) | $1.92 |
| EPS (Diluted) | $1.92 |
| Shares Outstanding (Basic) | 810.50M |
| Shares Outstanding (Diluted) | 811.30M |
Key Highlights
- 1Net income increased slightly to $1.559 billion in Q1 2012 from $1.549 billion in Q1 2011, driven by higher oil prices and domestic volumes.
- 2Net sales rose by 9.5% to $6.268 billion, reflecting strong performance in the oil and gas segment.
- 3Capital expenditures were significant at $2.4 billion, primarily directed towards the oil and gas segment, signaling continued investment in production capacity.
- 4Operating cash flow saw a substantial increase to $2.765 billion, up from $2.222 billion in the prior year, primarily due to higher oil prices and domestic volumes.
- 5The company maintained a strong liquidity position with $3.760 billion in cash and cash equivalents at the end of the quarter.
- 6Oil and gas production increased to 755,000 BOE per day, up from 730,000 BOE per day in the prior year's comparable period.
- 7Earnings per share (EPS) saw a modest increase to $1.92 from $1.90, demonstrating stable profitability on a per-share basis.