OCCIDENTAL PETROLEUM CORP /DE/ Quarterly Report for Q2 Ended Jun 30, 2018

Summary

Occidental Petroleum Corporation reported a significant increase in financial performance for the six months ended June 30, 2018, compared to the same period in 2017. Net income surged to $1.56 billion from $624 million, driven by higher crude oil prices, increased domestic volumes in the oil and gas segment, improved marketing margins, and favorable chemical segment performance. This resulted in a strong rise in diluted earnings per share to $2.02 from $0.81. The company's balance sheet shows total assets growing to $44.07 billion from $42.03 billion, primarily due to an increase in current assets and property, plant, and equipment. Liabilities also increased, largely driven by higher long-term debt and accounts payable. Occidental maintained a strong cash flow from operations, generating $2.76 billion, which was utilized for capital expenditures and dividend payments.

Key Highlights

• 1Net income more than doubled year-over-year for the six months ended June 30, 2018, reaching $1.56 billion, driven by improved commodity prices and segment performance.
• 2Diluted EPS significantly increased to $2.02 for the first six months of 2018, up from $0.81 in the prior year's comparable period.
• 3Total assets grew to $44.07 billion as of June 30, 2018, an increase from $42.03 billion at the end of 2017, reflecting growth in current assets and PP&E.
• 4Net cash provided by operating activities remained robust at $2.76 billion for the first six months of 2018.
• 5The company issued $1.0 billion in senior notes due 2048 and repaid $500 million in maturing debt during the period.
• 6Capital expenditures increased to $2.32 billion for the first six months of 2018, primarily in the oil and gas segment.
• 7Occidental announced plans to sell non-core domestic midstream assets, including pipelines and terminals, to streamline operations.

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