Summary
Occidental Petroleum Corporation (OXY) reported solid financial results for the second quarter and first half of 2024. The company demonstrated resilient revenue generation, with net sales totaling $6.82 billion for the quarter, a slight increase year-over-year, and $12.79 billion for the six months. Profitability also showed strength, with net income attributable to common stockholders reaching $992 million for the quarter and $1.71 billion for the six months. These results were supported by improved production volumes in the Oil and Gas segment, particularly in the Gulf of Mexico, and favorable pricing in certain chemical products. A significant development for the company is the successful closure of the CrownRock Acquisition on August 1, 2024, for approximately $11.1 billion in total purchase price (as of the filing date's preliminary allocation). This acquisition is expected to enhance OXY's Permian Basin portfolio and contribute immediately to cash flow. In anticipation of this, the company has been actively managing its balance sheet, issuing new debt and planning significant asset divestitures to reduce leverage post-acquisition. Occidental remains focused on its strategic priorities of maximizing cash flow, delivering a sustainable dividend, and investing in growth opportunities while advancing its low-carbon ventures.
Financial Highlights
48 data points| Revenue | $6.82B |
| Cost of Revenue | $910.00M |
| Gross Profit | $5.91B |
| SG&A Expenses | $259.00M |
| Net Income | $1.17B |
| EPS (Basic) | $1.10 |
| EPS (Diluted) | $1.03 |
| Shares Outstanding (Basic) | 893.80M |
| Shares Outstanding (Diluted) | 958.90M |
Key Highlights
- 1Net sales for the second quarter of 2024 were $6.82 billion, up slightly from $6.70 billion in Q2 2023, driven by higher domestic crude oil volumes and prices.
- 2Net income attributable to common stockholders was $992 million ($1.03 diluted EPS) for Q2 2024, an increase from $605 million ($0.63 diluted EPS) in Q2 2023, reflecting improved operational performance.
- 3The CrownRock Acquisition, valued at approximately $11.1 billion (preliminary allocation), closed on August 1, 2024, significantly expanding OXY's Permian Basin footprint.
- 4Occidental generated $4.4 billion in net cash from operating activities for the first six months of 2024, though this is a decrease from $5.9 billion in the prior year, largely due to working capital changes.
- 5Capital expenditures for the first six months of 2024 totaled $3.6 billion, up from $3.1 billion in the prior year, with investments in oil and gas, low-carbon ventures (STRATOS DAC facility), and chemical plant expansions.
- 6The company announced plans for $4.5 billion to $6 billion in asset divestitures within 18 months of the CrownRock acquisition closure, with proceeds to be used for debt reduction.
- 7Occidental declared dividends of $0.44 per share for the first six months of 2024, totaling $398 million, demonstrating a commitment to shareholder returns.