Summary
Occidental Petroleum Corporation (OXY) reported for the third quarter and nine months ended September 30, 2012, a decrease in net income and diluted EPS compared to the same periods in 2011. This was primarily driven by lower oil and gas segment product prices, higher operating costs, and reduced chemical segment pricing, despite an increase in oil volumes. The company maintained a strong liquidity position with significant cash on hand and available credit facilities, and expects sufficient cash flow to cover operational needs, capital expenditures, and dividends. Strategic investments were made in domestic oil and gas properties, notably in the Williston, Permian, and South Texas basins. The company also issued new senior unsecured notes to manage its debt structure. While facing a challenging commodity price environment, Occidental continues to focus on operational efficiency and capital discipline. The company also noted the initiation of an arbitration award against Ecuador for $1.77 billion, though its final resolution remains pending.
Financial Highlights
46 data points| Revenue | $5.96B |
| Cost of Revenue | $3.18B |
| Gross Profit | $2.79B |
| Operating Expenses | $394.00M |
| Operating Income | $4.27B |
| Net Income | $1.38B |
| EPS (Basic) | $1.69 |
| EPS (Diluted) | $1.69 |
| Shares Outstanding (Basic) | 809.70M |
| Shares Outstanding (Diluted) | 810.40M |
Key Highlights
- 1Net income for the nine months ended September 30, 2012, was $4.26 billion, a decrease from $5.14 billion in the same period of 2011.
- 2Diluted EPS for the nine months ended September 30, 2012, was $5.25, down from $6.31 in the prior year period.
- 3The company made significant capital expenditures, totaling $7.7 billion for the first nine months of 2012, primarily in the oil and gas segment ($6.3 billion), including approximately $1.1 billion for domestic property acquisitions.
- 4Occidental issued $1.75 billion in senior unsecured notes in June 2012 to manage its debt.
- 5Net cash provided by operating activities remained strong at $8.50 billion for the nine months ended September 30, 2012, a slight decrease from $8.64 billion in the prior year.
- 6Environmental remediation reserves stood at $329 million as of September 30, 2012, with a potential for additional losses up to $385 million.
- 7An arbitral tribunal awarded Occidental $1.77 billion in damages against Ecuador for a treaty violation, though this award is subject to annulment proceedings.