Summary
Occidental Petroleum Corporation (OXY) reported a net loss attributable to common stockholders of $912 million for the third quarter of 2019, a significant decrease from a net income of $1.87 billion in the prior year's quarter. This downturn is largely attributed to the substantial costs associated with the acquisition of Anadarko Petroleum Corporation, which closed on August 8, 2019. Merger-related costs amounted to $924 million in the third quarter, heavily impacting profitability. Despite the loss, revenues saw an increase due to higher oil production volumes following the Anadarko acquisition. The balance sheet reflects a substantial increase in total assets, from $43.9 billion at the end of 2018 to $125.4 billion as of September 30, 2019, driven by the acquisition. This is mirrored by a significant rise in total liabilities and equity. The company also completed the sale of Anadarko's Mozambique LNG assets for $4.2 billion in September 2019 as part of its strategy to divest non-core assets acquired in the Anadarko deal. Investors should monitor the integration progress of Anadarko, the execution of asset divestitures, and the management of the increased debt load.
Financial Highlights
51 data points| Revenue | $5.86B |
| Cost of Revenue | $741.00M |
| Gross Profit | $5.12B |
| SG&A Expenses | $245.00M |
| Operating Income | $529.00M |
| Net Income | -$912.00M |
| EPS (Basic) | $-1.08 |
| EPS (Diluted) | $-1.08 |
| Shares Outstanding (Basic) | 845.70M |
| Shares Outstanding (Diluted) | 845.70M |
Key Highlights
- 1Reported a net loss attributable to common stockholders of $912 million for Q3 2019, compared to net income of $1.87 billion in Q3 2018, heavily influenced by Anadarko merger costs.
- 2Total assets surged to $125.4 billion as of September 30, 2019, from $43.9 billion at year-end 2018, reflecting the significant impact of the Anadarko acquisition.
- 3The company incurred $924 million in Anadarko merger-related costs during the third quarter of 2019.
- 4Completed the sale of Anadarko's Mozambique LNG assets to Total S.A. for $4.2 billion in September 2019, as part of strategic divestitures.
- 5Net sales increased to $5.7 billion in Q3 2019 from $5.2 billion in Q3 2018, primarily due to higher oil production volumes from the acquired Anadarko assets.
- 6Long-term debt significantly increased to $47.6 billion from $10.2 billion, reflecting debt issued and assumed for the Anadarko acquisition.
- 7Introduced Western Midstream Partners, LP (WES) as a new reporting segment following the Anadarko merger.