Summary
Occidental Petroleum Corporation (OXY) reported a significant decline in financial performance for the six months ended June 30, 2015, compared to the same period in 2014, primarily driven by substantially lower realized commodity prices, particularly for crude oil. Net income for the six months swung from a profit of $2.8 billion in 2014 to a net loss of $42 million in 2015. This downturn is directly attributable to a steep drop in revenue, with net sales decreasing from $10.1 billion to $6.6 billion year-over-year, reflecting the challenging commodity price environment. Despite the revenue and profit decline, Occidental's operational performance showed resilience in certain areas, with an increase in oil and gas production volumes. The company also maintained its dividend payments and continued significant capital expenditures, indicating a focus on long-term asset development. The balance sheet reflects a reduction in cash and cash equivalents and an increase in current debt maturities, alongside a decrease in total stockholders' equity, largely due to dividend payments and share repurchases. Investors should closely monitor commodity price trends and OXY's ability to manage costs and maintain production levels in this low-price environment.
Financial Highlights
46 data points| Revenue | $3.47B |
| Operating Expenses | $347.00M |
| Operating Income | -$35.00M |
| Net Income | $176.00M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 766.40M |
| Shares Outstanding (Diluted) | 766.60M |
Key Highlights
- 1Net income for the first six months of 2015 was a loss of $42 million, a sharp decrease from a net income of $2.8 billion in the same period of 2014, largely due to lower commodity prices.
- 2Net sales for the first six months of 2015 dropped to $6.6 billion from $10.1 billion in the prior year's comparable period.
- 3Total assets decreased from $56.3 billion at December 31, 2014, to $54.4 billion at June 30, 2015, while total liabilities remained relatively stable, leading to a reduction in stockholders' equity.
- 4Cash and cash equivalents decreased to $2.8 billion at June 30, 2015, from $3.8 billion at December 31, 2014, with restricted cash also declining significantly.
- 5Oil and gas production volumes showed an increase year-over-year, with total production rising to 652,000 BOE per day in the first six months of 2015 from 576,000 BOE per day in the same period of 2014.
- 6The company issued $1.5 billion in senior unsecured notes in June 2015, contributing to an increase in current maturities of long-term debt.
- 7The company continued to pay dividends, with $1.1 billion paid in the first six months of 2015, while also repurchasing shares, contributing to the decrease in total equity.