Summary
Occidental Petroleum Corporation's first quarter 2019 results show a decrease in net income to $631 million from $708 million in the prior year, reflecting lower commodity prices. Net sales increased to $4.0 billion from $3.8 billion, driven by higher marketing margins and crude oil volumes, partially offset by price declines. The company's financial position remains solid, with total assets of $44.4 billion and total liabilities of $23.1 billion, though stockholders' equity saw a slight decrease. The company is actively navigating a dynamic market environment characterized by fluctuating commodity prices. While operational performance in the oil and gas segment was impacted by lower realized prices, the midstream and marketing segment showed strong improvement. A significant development is Occidental's ongoing pursuit of acquiring Anadarko Petroleum Corporation, with multiple revised proposals and significant financing arrangements, including a $10 billion commitment from Berkshire Hathaway, indicating a strategic focus on growth through acquisition despite market pressures.
Financial Highlights
50 data points| Revenue | $4.00B |
| Cost of Revenue | $669.00M |
| Gross Profit | $3.33B |
| SG&A Expenses | $140.00M |
| Operating Income | $631.00M |
| Net Income | $628.00M |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 748.90M |
| Shares Outstanding (Diluted) | 750.50M |
Key Highlights
- 1Net income decreased to $631 million for Q1 2019 from $708 million in Q1 2018, primarily due to lower commodity prices.
- 2Net sales increased to $4.0 billion in Q1 2019 from $3.8 billion in Q1 2018, driven by improved midstream marketing margins and higher crude oil volumes.
- 3Total assets grew to $44.4 billion as of March 31, 2019, from $43.9 billion at year-end 2018.
- 4Stockholders' equity slightly decreased to $21.2 billion from $21.3 billion, mainly due to treasury stock repurchases.
- 5Cash flow from operating activities was $948 million in Q1 2019, a slight decrease from $1.0 billion in Q1 2018.
- 6Occidental is actively pursuing the acquisition of Anadarko Petroleum Corporation, with substantial financing arrangements, including a $10 billion investment from Berkshire Hathaway.
- 7The company adopted new lease accounting standards (ASC 842) in January 2019, resulting in the recognition of operating lease assets and liabilities on the balance sheet.