What were the primary drivers for the decrease in net income compared to the previous year?

The primary drivers for the decrease in net income were lower oil and natural gas liquids (NGL) prices, coupled with reduced sales volumes in the Middle East/North Africa region. These factors led to a decrease in net sales, which consequently impacted profitability.

How did Occidental Petroleum manage its capital expenditures and liquidity during the quarter?

Occidental Petroleum invested $2.1 billion in capital expenditures, predominantly in its oil and gas segment. The company maintained a strong liquidity position, with $2.14 billion in cash and cash equivalents and an undrawn $2.0 billion credit facility, indicating sufficient financial resources to meet operational needs and planned expenditures.

Can you provide insights into the performance of Occidental's different business segments?

The oil and gas segment experienced a decrease in earnings due to lower commodity prices and specific regional volume declines, though domestic volumes increased. The chemical segment's earnings were impacted by weaker demand and pricing in chlorinated organics, partly offset by higher caustic soda exports. The midstream and marketing segment showed significant improvement, driven by enhanced marketing and trading activities.

What is the company's outlook regarding future capital spending and overall financial health?

Occidental expects its 2013 capital spending to remain consistent with previous estimates at $9.6 billion, focusing on increasing oil production and ensuring returns above the cost of capital. The company believes its cash on hand, cash generated from operations, and credit facilities are sufficient to fund its operating needs, capital expenditures, dividends, and debt payments.

OXY/OXY-WT 10-Q Quarterly Report Q1 FY2013

Summary

Occidental Petroleum Corporation (OXY) reported a decrease in net income to $1.355 billion for the first quarter of 2013, down from $1.559 billion in the same period of 2012. This was driven by lower net sales of $5.872 billion compared to $6.268 billion in the prior year, primarily due to decreased oil and natural gas liquids (NGL) prices and lower sales volumes in the Middle East/North Africa region. Despite these headwinds, the company saw improved performance in its midstream and marketing segment and benefited from higher domestic oil and gas volumes and operational efficiencies. The company's financial position remained solid, with total assets increasing to $65.824 billion. Cash and cash equivalents saw a significant increase to $2.140 billion from $1.592 billion at year-end 2012. Capital expenditures remained substantial at $2.1 billion, primarily focused on the oil and gas segment. Occidental maintained a strong liquidity position with an undrawn $2.0 billion credit facility and sufficient cash on hand and from operations to fund its needs.

Financial Highlights

45 data points

Beta

Revenue

$5.87B

0.5% Gross Margin

Net Income

$1.35B

0.2% Net Margin

EPS (Diluted)

$1.68

Total Assets

$65.82B

Cash & Equivalents

$2.14B

Free Cash Flow

$642.00M

Financial Statements

Beta

Revenue	$5.87B
Cost of Revenue	$3.14B
Gross Profit	$2.73B
Operating Expenses	$393.00M
Operating Income	$1.36B
Net Income	$1.35B
EPS (Basic)	$1.68
EPS (Diluted)	$1.68
Shares Outstanding (Basic)	804.70M
Shares Outstanding (Diluted)	805.20M

Key Highlights

1Net income for Q1 2013 was $1.355 billion, a decrease from $1.559 billion in Q1 2012, reflecting lower commodity prices and sales volumes.
2Net sales decreased to $5.872 billion from $6.268 billion year-over-year, mainly due to lower oil and NGL prices and reduced Middle East/North Africa volumes.
3Diluted EPS from continuing operations declined to $1.69 in Q1 2013 from $1.92 in Q1 2012.
4Cash and cash equivalents increased to $2.140 billion as of March 31, 2013, up from $1.592 billion at December 31, 2012.
5Capital expenditures were $2.1 billion for the quarter, with $1.7 billion allocated to the oil and gas segment.
6The midstream and marketing segment showed improved earnings, driven by better marketing and trading performance.
7The company declared a dividend of $0.64 per common share, an increase from $0.54 in the prior year's comparable period.

OCCIDENTAL PETROLEUM CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Financial Highlights

Key Highlights

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