Summary
Occidental Petroleum Corporation (OXY) reported a net loss of $218 million ($0.28 per diluted share) for the first quarter of 2015, a significant decline from a net income of $1.39 billion ($1.75 per diluted share) in the same period of 2014. This downturn was primarily driven by substantially lower realized commodity prices for oil and gas, despite an increase in crude oil production volumes. Net sales decreased by approximately 38% year-over-year. The company's financial performance was notably impacted by asset impairments totaling $324 million, primarily related to domestic oil and gas properties in South Texas and investments in Yemen, reflecting the challenging commodity price environment. While the chemical segment showed stable earnings, the midstream and marketing segment experienced a decline into a loss due to lower NGL prices and reduced pipeline and marketing margins. Occidental's liquidity remains adequate, with $2.2 billion in unrestricted cash, though cash flow from operations was considerably lower than the prior year. The company also announced a CEO succession plan, with Vicki A. Hollub slated to take over from Stephen I. Chazen.
Financial Highlights
47 data points| Revenue | $3.09B |
| Cost of Revenue | $2.59B |
| Gross Profit | $503.00M |
| Operating Expenses | $311.00M |
| Operating Income | -$215.00M |
| Net Income | -$218.00M |
| EPS (Basic) | $-0.28 |
| EPS (Diluted) | $-0.28 |
| Shares Outstanding (Basic) | 769.60M |
| Shares Outstanding (Diluted) | 769.60M |
Key Highlights
- 1Reported a net loss of $218 million for Q1 2015, a sharp decrease from a net income of $1.39 billion in Q1 2014, driven by lower commodity prices.
- 2Net sales declined by approximately 38% year-over-year, from $4.97 billion to $3.09 billion, due to lower realized prices across all oil and gas commodities.
- 3Experienced significant asset impairments of $324 million in Q1 2015, including charges related to domestic oil and gas properties and investments in Yemen.
- 4Oil and Gas segment reported a pre-tax operating loss of $266 million, a stark contrast to the $1.72 billion profit in the prior year's comparable quarter.
- 5Total company average daily oil and gas production volumes increased by 72,000 BOE to 645,000 BOE, demonstrating operational growth despite market headwinds.
- 6Occidental announced a CEO succession plan, with Vicki A. Hollub set to become CEO after a transition period.
- 7Unrestricted cash stood at $2.2 billion, providing a buffer, though cash flow from operations decreased substantially from $2.7 billion to $0.6 billion.