Summary
Occidental Petroleum Corporation (OXY) reported a significant decrease in net income and revenues for the three and six months ended June 30, 2023, compared to the same periods in the prior year. This decline is primarily attributed to lower commodity prices for oil and natural gas. Despite the revenue drop, the company generated substantial operating cash flow, enabling it to continue investing in its asset base and low-carbon initiatives. OXY also continued its commitment to shareholder returns through dividends and a significant share repurchase program. The company's balance sheet remains solid, with efforts focused on managing debt and optimizing financial leverage. Key developments include impairments in the Oil and Gas segment and positive progress on preferred stock redemptions.
Financial Highlights
45 data points| Revenue | $6.60B |
| Cost of Revenue | $791.00M |
| Gross Profit | $5.81B |
| SG&A Expenses | $277.00M |
| Net Income | $860.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 889.30M |
| Shares Outstanding (Diluted) | 958.80M |
Key Highlights
- 1Net income for the six months ended June 30, 2023, was $2.123 billion, a sharp decrease from $8.631 billion in the prior year, driven by lower commodity prices.
- 2Total revenues for the six months ended June 30, 2023, were $13.927 billion, down from $19.025 billion in the prior year, reflecting softer energy markets.
- 3The company generated $5.940 billion in net cash provided by operating activities for the six months ended June 30, 2023, demonstrating continued operational cash generation despite lower revenues.
- 4Capital expenditures for the six months ended June 30, 2023, were $3.107 billion, reflecting ongoing investments in the oil and gas and chemical businesses, as well as low-carbon ventures.
- 5Occidental repurchased approximately $1.2 billion of its common stock in the second quarter of 2023 under its $3.0 billion repurchase program, demonstrating a commitment to shareholder returns.
- 6The company continued to redeem its preferred stock, triggering the redemption of $1.3 billion (face value) in the first six months of 2023, driven by common shareholder distributions exceeding $4.00 per share.
- 7Asset impairments of $209 million were recorded in the Oil and Gas segment, primarily related to undeveloped acreage in the Powder River Basin and an equity investment.